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Mortgage Brokers, Lda · Tied Credit Intermediary, non-exclusive · Bank of Portugal reg. no. 0008242

Mortgage transfer: when switching banks makes sense

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IN SUMMARY
  1. 1 A transfer should be compared by total cost, not only by spread
  2. 2 Confirm the early repayment regime applicable in 2026
  3. 3 ESIS, APRC and total payable are central to the decision

Transferring a mortgage may reduce the instalment or improve conditions, but it only makes sense when the saving offsets all costs and contractual changes. The comparison must go beyond the advertised spread.

When it is worth simulating

It is worth simulating when the instalment weighs on the budget, when the current spread no longer fits the borrower profile, when insurance makes the package expensive or when the remaining term still allows costs to be spread. Savings should be measured in euros over the full term, not only in the first monthly payment.

Costs that can change the result

Consider valuation, registrations, deed or authenticated private document, fees, insurance and any early repayment fee. The Bank of Portugal stated that the suspension of the fee for variable-rate primary-home mortgages ran until 31 December 2025; in 2026 you should always confirm the current regime and the written offer.

How to compare offers

Ask for the ESIS of the new offer and compare nominal rate, APRC, total amount payable, term, instalment, bundled products, insurance and upfront costs. If the new instalment falls because the term increases, check the impact on the total payable amount. A good transfer improves both balance and total cost, not only the monthly feeling.

Sources consulted

This article is for informational purposes only and does not constitute financial, tax or legal advice. Always confirm the information applicable to your case with the competent authority and in the pre-contractual documentation. Mortgage Brokers, Lda - Tied Credit Intermediary, Bank of Portugal reg. no. 0008242.

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