Requirements for house credit
Do you want to buy a house, and like most Portuguese people, need a house loan? It is natural to feel lost with the technical language that is used by bank entities. It is also natural to travel a few miles until you find the best credit offer. Through this and other articles, we show some important points about house loans.
To become an expert when requesting credit, take note in advance of some points, or even terms commonly used by banks.
This article will explain what is mandatory and what is not, in order to be granted a house loan.
Life insurance
This is not an obligatory insurance to have by law but it is often requested by banks when granting house loans. If a death or disability event occurs, it is a safeguard for both the credit applicant and the bank itself. To obtain life insurance, it is not mandatory to do so with the bank's partner insurers. It is advisable to evaluate and compare several proposals, because those of the bank may not always be the most accessible.
Multi-risk insurance
This is not compulsory insurance in its entirety, in other words, the only compulsory insurance within the multi-risk insurance is fire insurance. Banks will tend to influence you to take out multi-risk insurance rather than just fire insurance. This happens because, by hiring the services of your bank's partners, you will earn bonuses on the spread on your house credit. Knowing this, you just have to do the math and compare what the best option is. Please note, if you choose one of the bank's partner insurances and later opt for another, the spread may change (some banks ensure that when transferring multi-risk or life insurance to another insurer, they do not change the spread).
Guarantor
It is not at all necessary to have a guarantor, everything will depend on your situation at the time of applying for credit, and the risk represented for the bank. First, the bank will assess your case, that is, whether you have financial and labour stability to move forward. The financial capacity to bear the credit liability will be calculated using the effort rate. However, even if its effort rate is low, the bank may ask for a guarantor if commercial interests so require. At this point, it is important to realize that from bank to bank, the demands change, so it will be necessary to go through some institutions until you get the right one.
Age limit
The minimum age for banks to provide credit is 18 years. As already been mentioned, you only have to meet certain conditions of stability. The maximum age is up to 75 years, and in the last instalment of the credit, the age cannot exceed this number. Therefore, if you are approved for credit at the age of 35 with a 40-year payment plan, the last instalment will be charged to you when you are 75.