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Bank valuation of a home in Portugal in 2026: how it works and what to do if it comes in low
Before approving a mortgage in Portugal, the bank has the home valued by an independent valuer registered with the securities regulator (CMVM). As a rule, the bank lends up to 90% of the lower of the price and the valuation for a permanent home, and up to 80% for other purposes. If the valuation comes in below the price, the buyer has to cover the gap with their own money. You are entitled to a copy of the report, can complain in writing, ask for a second valuation, or take a report under six months old to another bank.
When you apply for a mortgage in Portugal, the bank does not lend on the strength of the price you agreed with the seller alone. It first has the home valued by an independent valuer. That valuation determines how much the bank can lend, and it is often the difference between a deal that goes ahead and one that stalls while the buyer finds more money.
This guide explains the rules in force in November 2026: the mortgage credit law (Decree-Law 74-A/2017) and Banco de Portugal’s Macroprudential Recommendation 1/2026, which applies to loans assessed from 1 August 2026.
Summary
| Topic | Rule |
|---|---|
| Who values the home | Independent valuer registered with the CMVM |
| Who chooses the valuer | The bank |
| Who pays | As a rule, the client, per the bank’s price list |
| The report | You are entitled to a copy within 10 days |
| Loan limit | Up to 90% (permanent home) or 80% (other purposes) |
| What the limit is based on | The lower of the purchase price and the valuation |
| If you disagree | Written complaint and request for a second valuation |
| Switching banks | You can propose an existing report under six months old |
Who values the home
Article 18 of Decree-Law 74-A/2017 requires banks to have homes valued by an independent property valuer registered with the Comissão do Mercado de Valores Mobiliários (CMVM), Portugal’s securities regulator. The bank commissions the valuation and chooses the valuer, usually from a valuation firm it works with.
The valuer visits the home, checks the floor area and condition, and compares it with similar homes nearby. The bank usually asks beforehand for the property documents, such as the tax record (caderneta predial) and the land registry certificate (certidão permanente), which the seller should have ready.
What it costs and who pays
As a rule, the client pays for the valuation. The amount is in each bank’s price list (preçário) and varies from bank to bank. The law says a bank may charge only one fee for assessing and deciding on the loan, but allows the property valuation to be charged separately (article 28-A).
Some rules protect the client:
- When a valuation is needed to obtain the loan, its cost is part of the total cost of credit, so it counts towards the APR (TAEG) you are quoted.
- The bank’s general information must say whether a valuation is needed, who carries it out and the costs to the client, including those of a second valuation.
- If the bank revalues the home on its own initiative to comply with legal or regulatory rules, it cannot charge the client anything.
Compare the valuation fee between banks when choosing your mortgage, together with the spread and other fees.
The report is yours
The bank must give you a copy of the report and the other valuation documents. If you paid for the valuation, you own the report and receive the original. Either way, the bank has 10 days from receiving the report to hand it over.
Read the report carefully. Check the floor area, number of bedrooms, floor level, condition and the homes used for comparison. A factual error, such as a smaller area than the real one or a room left out, is the strongest basis for a complaint.
How much the bank will lend
Banco de Portugal recommends that banks limit the ratio between the loan and the value of the home (LTV, loan to value). Since 1 August 2026 these limits apply:
| Purpose of the loan | Loan limit |
|---|---|
| Buying, building or renovating your permanent home | Up to 90% |
| Other purposes, such as a second home or a home to let | Up to 80% |
The key point is what the calculation is based on: the lower of the purchase price and the valuation. If the valuation equals or exceeds the price, the price counts. If it is lower, the valuation counts and the maximum loan falls.
There are specific rules for other cases. For a home bought two or more years ago, or received by inheritance or gift, the valuation counts. For a loan to build, or to renovate a home bought less than two years ago, the lower of the total cost and the expected value after the works counts.
The same recommendation limits the monthly payment to 45% of net income, with some exceptions, and the loan term to 40 years for borrowers aged 35 or under and 35 years above that age.
Worked example
The figures are for illustration only. A permanent home bought for €300,000:
| Valuation equal to the price | Valuation below the price | |
|---|---|---|
| Valuation | €300,000 | €280,000 |
| Basis for the limit | €300,000 | €280,000 |
| Maximum loan (90%) | €270,000 | €252,000 |
| Deposit from own funds | €30,000 | €48,000 |
A valuation €20,000 below the price means the buyer must find another €18,000 of their own money, on top of the taxes and costs of buying. Our guide to the cost of buying property in Portugal explains those costs.
What to do if the valuation comes in low
1. Read the report and look for errors
Ask for the report if you have not received it, and compare it with the caderneta predial and the home itself. Wrong floor areas, missing rooms, recent works that were ignored, or comparison homes from another area or in worse condition are concrete grounds to challenge it.
2. Complain in writing
The law gives you the right to file a written complaint with the bank about the results and reasoning of the valuation. The bank must answer with reasons. Attach evidence: photos, invoices for works, floor plans and recent sales of similar homes nearby.
3. Ask for a second valuation
You can also ask the bank for a second valuation of the property. Ask how much it costs first: the law requires the bank to disclose the cost but does not set it.
4. Take the report to another bank
Since 2023, you can propose that another bank uses an existing report, provided that:
- it was issued less than six months ago;
- it was commissioned by a bank;
- the valuer is tied to a bank and has no conflict of interest regarding the home or the people involved.
The new bank has 5 working days to say whether it accepts. It can refuse a report more than three months old if it shows there have been significant market changes. Otherwise, if it does not accept the report, the bank pays for the new valuation. Each bank has its own criteria, and another bank may also reach a different figure.
5. Renegotiate the price
A low bank valuation is a legitimate argument for renegotiating with the seller, especially if the report shows comparable sales below the agreed price. It does not always work, but it is a conversation to have before completion.
6. Increase your own funds
If none of this works, the answer is to cover the gap from savings or with family help. Check with the bank whether you need to prove where the money comes from, and with which documents.
Before you sign the promissory contract
The riskiest moment is when the buyer has already paid the deposit and only then finds out the valuation is below the price. If the seller will not renegotiate and the buyer cannot cover the gap, the deposit may be lost.
So if you are buying with a mortgage:
- get a mortgage pre-approval before making an offer;
- include a mortgage condition in the promissory contract, with a deadline and the return of the deposit if the loan is not approved;
- allow enough time between the promissory contract and completion for the valuation and any complaint.
Our guide to the promissory contract and deposit explains what happens to the deposit when someone fails to perform.
Public guarantee for young buyers
Young people aged 18 to 35 with their tax address in Portugal can buy their first permanent home with a public guarantee covering up to 15% of the loan, which allows financing of up to 100% of the transaction value. The home cannot cost more than €450,000, the buyer cannot own another home, income cannot exceed the 8th income tax bracket and the scheme is in place until 31 December 2026.
The bank valuation still takes place. If it comes in below the price, ask the bank how that affects the amount it can lend with the guarantee.
Bank valuation and market price
A bank valuation is not the sale price. The valuer estimates a prudent value for the home as security for a loan, and that value can be below what buyers are paying in an area with strong demand. Statistics Portugal (INE) publishes the median bank valuation per square metre every month, and we show it, together with the price of homes sold, on our house prices map.
How we help
When we help you buy, we view, analyse and negotiate on your behalf, and follow the promissory contract, the mortgage and the deed. See our homes for sale or read our guide to working with a buyer’s agent in Portugal.
This guide is general information, not financial or legal advice. The terms of each mortgage depend on the bank and on your situation: always check with the bank, or with a credit intermediary authorised by Banco de Portugal, before you sign.