Frequently asked questions about Mortgage Loan

You can apply through our app, website, or by visiting a branch in person. When using the app or website, follow these steps: calculate the mortgage, complete the application, and submit it. Ensure you have your last three months' payslips and the IRS validation code ready. Additionally, you can attach essential property documents, including the Permanent Certificate, Caderneta Predial, and the listed building plan.

An equity loan, also known as a home equity loan or a second mortgage, is a type of loan where a homeowner uses the equity in their property as collateral to borrow money for other financial goals. This loan category typically offers a more favorable interest rate compared to personal loans due to its mortgage-based nature. In the Millennium App, you can find this lending option through the "Other objectives" feature.

The effort rate, also known as the debt-to-income ratio, represents the proportion of your total monthly loan payments to your monthly net income. When deciding whether to grant you a loan, we always take this information into account, and the loan will only be approved if this effort rate is in harmony with your financial capacity.

There are several loan terms available.
Under the General Regime:

• 40 years, for Customers aged 30 and below;
• 37 years, for Customers aged over 30 but under 35;
• 35 years, for Customers aged over 35.

The maximum term is contingent on no party involved exceeding 72 years of age at loan completion.

Under the subsidized scheme for disabled individuals:

• 40 years with a maximum age of 72 years at loan maturity.

You can apply for a mortgage loan from the age of 18 and as long as you are not older than 72 at the end of the loan.

The valuation of the property is mandatory (unless there is already a valid valuation) to establish the market value of the property, which will serve as a bank guarantee. An appraiser visits the property and charges a fee for the service.

During the mortgage loan process, fees are charged for the valuation of the property, the analysis of the documentation and the formalization of the loan. Fees may also be charged for services provided during and at the end of the contract.

The loan formalization, along with the purchase and sale process, includes expenses such as contract costs, fees, notary fees, and registry fees. These fees are payable to the entities offering these services. You can see the amounts of these expenses in the calculation result.

It is the assessment of the consumer's ability and willingness to fulfill the responsibilities outlined in the loan agreement.

The primary house documents necessary for obtaining a mortgage loan include:

• Permanent Certificate
• Caderneta Predial (Property Tax Document)
• Dimensioned Plan
• Energy Certificate

Additionally, a usage license might be necessary.

Depending on the loan type, there might be additional documents requested as well.

It is the document that certifies all the records of the property: location, composition, ownership, encumbrances and transfers. This document can be obtained at www.predialonline.pt or directly from the Registry Office.

The urban or rural Caderneta Predial serves as the foundational document detailing the property's address, dimensions, structure, and owners. A Usage License is mandated, except for properties predating 07-08-1951 or when owned by entities like the Câmara Municipal, State, IGFSS, and IGAPHE. This license can be acquired from the Câmara Municipal.

This document provides the energy rating of the property, considering its current energy performance, efficiency in energy use, and renewable energy contributions. The rating is compared to standard reference values. You can obtain this document from www.adene.pt, where you can also seek advice from various experts.

The primary documents you should obtain include: identification documents, birth and marriage certificates, and any necessary powers of attorney. Depending on the type of loan, we might request additional documents.

Analyzing and potentially changing the contractual conditions of a financing arrangement requires a decision, thus making it necessary to visit a branch.

If the first loan was granted under the general or disability scheme, and if the second loan also falls under these schemes, there is no legal restriction.

The European Standard Information Sheet is a document provided by Millennium containing detailed information on all the variables and the particular conditions of your loan.

This document helps you compare offers from different banks, making it easier to decide responsibly before finalizing the loan agreement.

The monthly installment includes the repayment of the capital and the payment of interest on the loan.

The spread is the additional interest rate set by  Millennium. It’s added to the index (monthly average of the 3, 6 or 12 month Euribor) to obtain the nominal annual interest rate (TAN).

The spread is influenced by various factors. It can be adjusted based on the products you select to go along with your mortgage loan, which are often referred to as optional associated sales. This choice can lead to a higher or lower spread value.

You can decrease the spread by choosing and regularly using additional products or services (optional associated sales). For instance, things like having your salary deposited, using a credit card, or getting loan-related insurance can help lower the spread.

Families looking to finance the acquisition, construction, or maintenance of their primary or secondary residence can access this credit program.

Up to 100% of the lower of the property's appraised value or transaction value.

The LTV (Loan-To-Value) is the name given to the ratio between the amount of the loan to be granted and the value of the property.

Millennium provides a loan for a maximum percentage of either the house's purchase price or its appraised value, depending on whichever is lower. The difference between the loan amount and the purchase price is called equity and is paid by you. The maximum term of the loan varies according to the age of the older holder. For example, if you are under 30 years old, the maximum term is 40 years. Between the ages of 31 and 34, the maximum term will be 37 years. From the age of 35, the maximum term will be 35 years, provided that none of the holders exceeds the age of 72 at the end of the loan. The longer the term, the lower your monthly payment (as long as the rest of the conditions remain unchanged).

As per the current Bank of Portugal regulations, the maximum financing limit stands at 90% of the lower value between the property's appraisal or purchase price for loans intended for personal and permanent housing (first home). For other purposes, this limit is set at 80%.

However, there is an exception to these regulations. If you opt to purchase a property owned by Millennium, you can apply for a mortgage with full 100% financing. This alternative might be of interest to those seeking substantial support for their property purchase.

Loans with this rate have an initial period with a fixed rate (the value of the installment does not change) and in the remaining period the rate is variable, indexed to Euribor 6 months.

For example, a 30-year mortgage loan may have a fixed rate for the first 5 years and a variable rate, indexed to Euribor, for the remaining 25 years.

It is a rate that remains the same throughout the loan contract. It is set at the beginning of the contract and remains the same until the end of the loan. As a result, the monthly installment remains the same, regardless of market variations.

This is a rate that can vary over time, as it mirrors the changes in the index's value. The installment is adjusted at the frequency of the index's updates (for example, if the index is the 6-month Euribor, the installment is revised every 6 months). Variable rates offer the advantage of lower installments when rates are low, but come with the possibility of higher payments if rates increase. At Millennium, the used index is the 6-month Euribor.

The Euribor rate (Euro Interbank Offered Rate) is the reference rate of the interbank money market in the euro area, meaning it is the rate at which banks finance each other. The index that Millennium uses is the monthly average of the 6-month Euribor.

Stamp Duty is a tax imposed when the loan amount becomes accessible.

The Stamp Duty rate is 0.8% of the property's acquisition value as stated in the deed.

IMT stands for Imposto Municipal sobre Transmissões Onerosas de Imóveis. It's a tax on real estate purchases, calculated based on either the property's appraised value or its transaction value - whichever is higher. This tax must be paid before finalizing the property deed.

When you secure a mortgage, you agree to gradually pay off both the principal amount and the interest over a specified timeframe. This process is referred to as loan repayment.

For partial repayment, you need to provide a notice of at least 7 working days before the installment due date.

If you're requesting full repayment, a notice of at least 10 working days is required at any point during the contract term. The amortized amount will only be visible in the following month's installment after the repayment is made.

Currently, it is not possible to make a mortgage repayment via the website or app, only at a branch.

You can make partial and/or full repayments.

Yes. If your mortgage carries a fixed rate, the charge will be 2% of the repayment amount. In the case of a variable rate, the charge will be 0.5% of the amortization amount. Both of these figures are subject to an additional Stamp Duty fee.

Full early repayment occurs when you have paid off the entire outstanding principal before the loan is due to end.

Partial early repayment occurs when you make an on-time payment of part of the outstanding principal, in addition to the monthly installment amount.

There is no minimum amount, you can repay any amount you prefer.

Mortgage life insurance is mandatory and serves to safeguard your family in case of your death or disability. It ensures the settlement of the outstanding amount upon the insured person's death or total and permanent disability due to illness or accident, providing financial security for your family by relieving them of any remaining payments.

Home insurance is mandatory and is intended to safeguard your residence. It covers the cost of repairing damages to the property and provides compensation for the insured amount (reconstruction value) in the event of complete loss. The choice to include contents coverage is optional, which reimburses for damages to personal property within the premises.

The Payment Protection Plan insurance is optional and guarantees the payment of the monthly loan installment for a period of time and up to the predefined limits. This coverage applies when there is a loss of income due to unemployment, hospitalization, or sick leave caused by illness or accident of the insured person.

The insurances required for mortgage loans are life insurance and home insurance. However, it's not mandatory to purchase these insurances from the bank providing the loan.

A guarantor is a third party who takes on the responsibility of making loan payments if the borrower fails to comply with the loan terms.

When analyzing your loan application and the effort rate, Millennium may consider that additional guarantees are necessary. One of the guarantees that may be asked of you is that you have guarantors associated with the loan.

Only when the loan is paid in full and there is no remaining debt from the customer.

Throughout the mortgage loan journey, charges are incurred for property valuation, documentation analysis, and loan formalization. Additionally, commissions might be applicable for services during and at the contract's conclusion. Upon loan formalization, there are expenses like contract costs, fees, notary fees, and registry fees, payable to the relevant service providers. When signing the deed, notary fees are incurred for both property purchase and the mortgage.

Individuals with a disability of 60% or higher, as well as disabled members of the Armed Forces covered by Decree-Law no. 43/76, as of January 20, can access this loan scheme. The scheme is designed for those aiming to finance the purchase or construction of their primary residence.

The maximum amount is determined by the Banking Sector Vertical Working Agreement, and currently stands at €189,015.73.

Millennium disburses the financed amount for self-construction and renovations in multiple tranches (up to a maximum of 6) over a period of up to 24 months. During the installment disbursement phase, you only pay interest on the used amounts during that time.