Buying a home means preparing the deposit, the taxes, the costs of the loan and a reserve for expenses after the purchase.
How much do you need to save to buy a home?
Buying a home takes more than being able to cover the monthly instalment. Before moving forward, it is important to understand how much you will need available for the deposit and for every expense associated with the purchase.
In Portugal, banks normally finance up to 90% of the value of the home when it is a primary residence, which means that in many cases you will need to cover at least 10% from your own funds. There are, however, specific schemes that may change this for eligible buyers.
On top of the deposit come other charges, such as IMT (property transfer tax), Stamp Duty, the deed, registrations, the bank valuation and any fees related to the loan. The savings you need should therefore be calculated on the total cost of the purchase, not just the initial price of the home.
Keeping a financial reserve after the purchase matters just as much, so you can cover moving, works, furniture or other unexpected expenses without putting the household budget at risk.
Read the full article on MAXFINANCE.