Great job Kalie - and Josh too! This was a great video explaining the mortgage process from the pre-approval all the way to closing. I think for most folks from the U.S., the life insurance requirement would be the major difference. It makes sense though, if you take out a 200,000 Euro mortgage, then you may need a 200,000 Euro life insurance policy just in case something happens to the borrower(s).
If you look closely to your mortgage paperwork here in the USA you will probably find a life insurance policy taken out by the lender for your loan. I know it used to be standard practices .
@@machellep1 Thanks for letting me know. How funny that the mortgage companies here in the U.S. don’t say anything about life insurance. I will have to check it out.
Thanks Kalie! 👏 You were laser focused! Great guests Josh! Super resourceful! Well done! Wow crazy low interest rates compared to US! Almost retired and will be ready to go within two years! I thought US citizens can no longer purchase properties in coastal areas?
Excellent info on the mortgage Process. I can tell that these folks know how to process the loans the right way. If we had these Portuguese running the mortgage loans in the US, we wouldn't have had the 2008 Housing Market collapse. This shows how the US banking and mortgage systems are run by crooks and rogue loan officers in Banks. Surprised to note the rates were in the 1 plus rate. Can you have another episode that covers the additional % age for closing for the landed cost (the equivalent of US closing cost that includes Courier fee, copying fee and other bogus fees which alone cost 1% , in the total 3.5 to 5% closing cost). From what i can tell the system seems to be FAIR and not a robbery like in the US. Great job Kelly.
@@ExpatsEverywhere - Wish you Good Luck with your House Hunt. Let us know the House warming party date- will bring the chip, salsa, Guacamole, 7 layer dip and Jalapeno poppers to spice up the party!
Excellent job explaining the details of every corner this topic entails! We are a Canadian family working in Denmark and recently started to look into portugal for real-estate investment opportunities... this is by far the best video that the hits the nail on the head
Great question, Wayne. We're guessing that it's possible especially if your dividends are high enough to get a mortgage worth a company lending out if that makes sense, but it might be best to contact a broker on this one because maybe dividend investment income isn't as secure or regular as they'd (banks) like to see. - Josh & Kalie
OMGOSH Thank you! I pretty much gave up getting a overseas loan. I just couldn’t find any information on it. I will definitely be doing this. I don’t like pay rent on something I can eventually own.
Cool. One thing they never mention is property taxes. As you know, in the US , it is a crucial piece when buying a property. I also heard you must pay a sales tax (vat or IVA, something like that) which is money above and beyond the down payment you should have ready to pay.
This is a nice idea for a new video, IMHO. A big chunk of investment properties are those taxes over time. Renting may be wiser in the long run, particularly if you don’t want to be committed to one area or neighborhood
0.8% stamp tax on purchase, plus a municipal tax that will vary depending on the house value. So for 350k purchase, you pay 16k of this tax. There are Yearly municipal taxes vary depending on several factors, but they are not back breaking.
You're exactly right. Our idea and hope is to get into the nitty gritty details when we actually purchase a property here. We can break it down from our personal experience and hopefully do it in an entertaining way. - Josh & Kalie
😊 Indeed! It's hilarious that you mention that because it was actually nestled in the scarf and only once did the mic get scratched. Did you hear it? 😅 - Josh & Kalie
So informative and how you did that without jotting down one note is amazing!! Thanks for another great video and glad you found some clothes at Desigual!
Oh, I almost forgot then at the closing and you sign it like a 1,000 papers and then you have the keys to your house. Good job explaining all that, Kalie!!!😃
Josh and Kalie do not work for you. You can ASK them to do such a video and hope they have time to do you, and all of US, that favor. That's how you have to look at their videos, they're doing us FAVORS by sharing their knowledge...we should consider Josh and Kalie as FRIENDS, even if you dont personally know them. I understand they do it for money as well, but you can clearly see they ENJOY helping people. So don't mean to be rude, but next time ASK, don't DEMAND 🤷♂️.
Hey, Portugal-BOUNDeXPATS!, thanks for your comment. It's truly okay. We're in a great mood and we didn't read Gary's comment wrongly or like he was demanding it. 😁 We do want to say, thank you for supporting us on here and recognizing that we do this video content creation stuff as a job now and because we LOVE it. We feel completely blessed to be able to do it. We really enjoy making video, love helping people, and we get to make a living doing it. BLESSED. - Josh & Kalie
Considering Josh & Kalie's reply, I truly apologize to you Gary if my statement came off as a rebuke or you took it as being rude, that was not my intention....but intention doesnt matter once an action is committed. So I sincerely apologize! 🙌
@@ExpatsEverywhere if you guys want/can wait until at least summer of 2023, we could do the video together since I'm definitely looking to purchase a car lol. Just an idea...and you guys know you'll always have a ride with us! 😊. Btw: we're looking at places between Lisbon and Porto(so we're close to both cities), so we'll probably be living within an hour of each other 🤙
Hi Kalie, happy that you were able to go shopping. When you decide to purchase a home in Portugal, is there a rwuited home inspection? You did a great job with getting all the mortgage info. I ko e watching you, your husbabd and Sia! Thank you!!!
Thank you, Nancy. It's not common but we will get an inspection done. We know someone here that does it like it would be done in North America. - Josh & Kalie
Thank you for the feedback! Sometimes we're not sure if we're finding the right balance with details vs cutting to the chase. Those pastel de nata definitely didn't go to waste! - Josh & Kalie
Thank you very much. We hope you've been able to subscribe and hit the notification bell so you won't miss our posts. A lot of what we do is Portugal related because we're living here. - Josh & Kalie
Extremely informative video. I think I'll print out my financials when I come to further explore Porto neighborhoods next month. Your Bonfim, especially, and Marques videos sparked my interest. Are you looking to buy in the Algarve now? All my best to you!!! Obrigada!
@@ExpatsEverywhere you're going to have so many aunties and uncles in Portugal for Valencia the way you're growing your expat tribe. Truly grateful for you.
@@ExpatsEverywhere darn! I was banking on, pun intended, being able to withdraw from my 401k when I reach 59 1/2 in a few years to pay a majority of the mortgage (I don't have yet) off. Thankfully I have a sizeable down payment from proceeds of real estate sales. LOVE your content!
Hi Nicole, they've moved up from when this video was shot. Just like they've moved in the US. Let us know if you'd like to be introduce to a mortgage broker. - Josh & Kalie
Hey Kevin, you're absolutely right. Email Josh at contact@expatseverywhere.com and he can pass you some contacts. There's not 1 company/agent up here that we would recommend, but we see them having strong points to consider so it kind of depends on what you're looking for and where. - Josh & Kalie
Hi guys, can you do a video about taxation for an American citizen who has a property abroad and lives in USA or lives abroad, earning money abroad and bought a property for himself or gets a rental income from it? As an American citizen there is an obligation to pay taxes regardless where you live and work. Can you clarify that information for me? How does it work with you, guys? Thanks in advance.
Wow, great job! I just have a question about life insurance: What if the client already has US life insurance, would she still have to get a Portuguese one? And: Is there an obligation to maintain the life insurance policy for the duration of the loan? The reason for this question is that life insurance rates frequently change as you get older (they do on my current US policy).
Hi Mc, thank you! I think that's really a question for the mortgage broker but we're betting that your life insurance in the US won't count towards the ones here. The banks want to be the one carrying the insurance or have collaboration in it to secure their assets. - Josh & Kalie
Thank you, Sharon! Send me an email and I'll try to help. We appreciate your consideration to support our work!! My email is info@expatseverywhere.com - Kalie
I just talked to someone and they don't work like the US. You can get the mortgage and insurance and other debits to be automatic though so you won't miss a payment. The closing cost for the property are paid separately at the time of the deed so that's IMT, IS and the deed/registration of the property. Email us at contact@expatseverywhere.com if you have any more questions. - Josh & Kalie
Hi Kalie, I was impressed! You made it! Shopping was a satisfying way to end the video!! Kaylee, there is only one question that was not asked but an important one. How much are the closing costs? When I asked another realtor she said it’s about 10% of the sales price. That’s more than we have to pay in the states. It’s like paying the realtors and the closing costs. 10% of $300,000 is 30,000 yikes. I would have also asked the male realtor how he makes money since he said he doesn’t charge. Do you think you can find out if the closing costs are the same with Ideal homes? I don’t know if it was one specific realtor and that office or if that’s the standard for buying in Portugal. Thanks!! Your videos have been so helpful. I’m gathering information and planning.
Thank you, Janis. We're glad that the ending was satisfying. The reason we didn't find that question as relevant per se is because the bulk of closing costs have to do with the property sale, taxes and registration, not the mortgage costs. Idealista.pt actually has a calculator that can show you what you're expected to pay based on the price of the house you're looking at purchasing. The money that IH mortgage brokers make is on the bank's side for bring them business. The bank pays that commission. Thanks for the message. If and when we start the home buying process for real, we'll document it all for you all. - Josh & Kalie
Great video. Very clear and helpful. Though gratefully we were able to buy our house for cash. Though i do wonder, looking at the interest rates, if financing the house and investing the cash may have made me more money Love that you can't carry more than 40% monthly debt. What a nonpreditory approach
How about buying income properties in Silver Coast, for example, for Airbnb? Have you been there? I am very curious about that area. It seems to be potential area to invest. Please make a video on that. Thank you both!
Thanks for the message. We'll take that on board for sure. We've certainly been up and down the silver coast. Filming outside of Porto is tricky for us with a 2 year old right now. - Josh & Kalie
I've never had a mortgage. What if you have a twenty year mortgage but pay it off early, say after ten years. Are there any penalties or restrictions in Portugal? Thanks. Great video.
I guess it depends on the bank and the type of mortgage, but Banco BPI would charge 0.5% early repayment fee for either partial or full early repayment on our mortgage. So, say we wanted to pay off €10,000, we would be charged €50 for doing so. My husband is Portuguese so we were able to get a 40-year mortgage, and we opted for variable, rather than fixed or mixed. Hope that helps!
I was a little surprised about the life insurance...Anyone have more experience with that aspect? I would think it's just about percentage down and qualifying income for monthly mortgage...No?
The MIP =- Mortgagee Insurance Protection is anywhere form 0.5 - 1.0% of your loan amount. There is no such thing as a free meal. In the US they are not only killing you with high rates, fees etc and while killing you with high payments, they collect the MIP premium just in case you die prematurely.
@@cookmaster3626 Did I mention a free ride? I did know about MIP and the cost, but didn't know banks require life insurance...I don't think all do just like terms, down payment, etc are different by bank!
This was an interesting conversation and it’s great that it was in English, admittedly better absorption of the information. Buying in a different country has a lot to take in, I wonder if the appraisers of banks in PT have stricter rules now that prices are going up with their exposure much greater. Thank you, Kalie and Josh.
Just curious, who have you emailed? We can reach out to them on your behalf if you'd like. Maybe the email went to spam. 🤷♂️ It happens to us randomly too. - Josh & Kalie
I believe it is mortgage insurance that you will be getting and not life insurance. People get life insurance for their personal needs, banks encourage you to buy insurance based on the value of the mortgage (aka mortgage insurance)to cover you/them if one spouse dies. The cost of a mortgage insurance is very expensive and you get nothing in return when the mortgage is paid off or if and when the property is sold. It is cheaper to buy separate insurance at a lower rate from a private insurance company to cover the value of the mortgage in case of death of one spouse or loss of income due disability. When I purchased my first property I refused the insurance the bank was pushing for it didn’t benefit me.
We've had multiple real estate professionals here call it life insurance. - Josh & Kalie
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It’s actually 2 insurances. 1 life that you pay monthly and 1 on the property per year. For a 250k loan it’s around 80-100€ for the couple for the life insurance if you are above 40 and about 200-250€ per year on the property.
Guys your content is amazing, and come on dude just 100€? Alright 2 quick questions: - the 3 years of tax returns have to be from Portugal? So basically one had to live there for 3 years then apply? - the guys spoke about variable rate of 0.7%, how about the fixed rates? What are the ranges approximately? Thanks!
Thanks, Ward! As far as we know, it's tax returns period. So our US tax returns should work. We're inching our way towards doing this whole process and we'll cover it on the channel. We've seen around 1.7% on fixed rates. That's still 2-3x better than we'll get in the US. - Josh & Kalie
Yeah, it could change the lending amount, which would then put you on the hook for more of a downpayment or it's possible to go back to the seller and talk about price. - Josh & Kalie
Do you have any recommendations for a similar mortgage broker like Idealhomes but closer to Porto? Looks like Idealhomes might be more suited to the Algarve. Great video though, cleared up a lot about the process there.
We’re in this process right now, what I dislike about this whole process of buying a property in Portugal is the pressure that the estate agent puts on about signing the promise to buy contract and paying the deposit, even before you know if the bank will approve the loan, to me this doesn’t make sense. 🤔
Excellent video and just the information I was looking for! So, I assume the seller has to pay Ideal Home a commission ? And funny enough, I looked at your top and thought to myself “ that looks like a Desigual item” and bam 💥 you mention it 😉 🙌, I like those brand too a lot! Hard to find in New Zealand 😂 they are truly at the end of this earth and far behind the moon 🌒 😬 can’t wait to move back to Europe/ Portugal 🇵🇹
Thank you! The bank actually pays the commission to Ideal Homes for the mortgage broker side. If IH sales the property, that's different as their agent will get a sales commission usually from the seller. Kalie and I both like Desigual but these days the women's stuff is better than the men's. - Josh & Kalie
What Jose said is BS. They have me just one option and it was not pre approved. Just an email stating the amount. When I asked for another offer they never called back.
Do they say why they only gave you one option? Was something atypical with your pre-approval form that you know of? If you don't mind, we don't mind reaching out to IH or Joe about that lack of calling you back bit. If you want to email us at contact@expatseverywhere.com I don't mind mediating. - Josh
Hi Guys I sent this video to my friends who need to watch it because they’re considering getting a mortgage and buying a property in Portugal. One of my friends is asking if we could meet with this mortgage broker. Is that possible? Do you know how we can contact him? Thanks again Janis
Hi Janis, thanks for sharing the video. 😁 Rafael is based in Aveiro and does met people in person like he did with me. If you're able to go to Aveiro, you can do it too, however, many people just talk to him remotely as he can work with people located anywhere to buy a property in all locations in Portugal. Shoot me an email and I'll make an introduction for you. contact@expatseverywhere.com - Josh
Thank you Kalie and Josh. really good video. Did you by any chance ask about retirees since they don't have a 'regular paycheck/income' - what proof of income would they need? Thanks and Happy Shopping!
All types of study income are good to be approved for a mortgage. That is a universal truth. I've purchased 7 properties throughout my lifetime. If you have a pension, social security, passive income, a job, annuities, etc. Any form of money that you constantly and steadily get is what banks want to see before you get a mortgage. They just want to make sure that you're gonna be able to pay that mortgage every month. And another thing... so what if they penalize you for paying off the house before the allotted time Banks want you to keep paying that mortgage forever and ever. But if you have an opportunity to pay off the home mortgage; more power to. Because then when you sell your property you are making a fortune practically.
I just went through the mortgage process myself. There's no way you can explain it in 60 seconds. This video is over 20 minutes long just to explain it at a high level...
Hi Therese, it doesn't seem too different than other places. In the US, the just need to know more about us because we're in the "system" and our credit score plays a roll. - Josh & Kalie
Wait, wait! Josh has a MONTHLY CLOTHING BUDGET?! OK he qualifies as a Metrosexual hahaha! I have my own 1 minute tutorial on financing a home purchase in PT: ALL CA$H OFFER. Hahahaha. Hey, where’s that video on Lapa? My sister wants to see it before she visits….
Hey, Patrick! We just have budgets in general and line items for things but it's not the first time I've been called a metrosexual although I left those when my modeling days finished. Regarding the lapa video, i'll make it my next edit that I do after this one I'm working on now. When does your sister visit? - Josh
@@ExpatsEverywhere thanks and they’re coming next month- her and her hubby. Gotta get the bed in the spare room asap! Did you ever do runway? Who’s better: Kate Moss or Linda Evangelista? Ha!
Ooh, that's a different question than the scope of this video. Have you spoken to a PT tax specialist? That's our recommendation. Email info@expatseverywhere.com if you'd like some names of tax people here. - Josh & Kalie
This was fabulous! I learned so much about the process in Portugal. Great job Kalie! Thank you both for another informative and fun video.
Our pleasure! Thanks for the feedback, Maria. We appreciate you subscribing and watching so much of our content! - Josh & Kalie
Thanks!
Thank you very much for the channel support, Gerry! You're awesome! - Josh & Kalie
Great job Kalie - and Josh too! This was a great video explaining the mortgage process from the pre-approval all the way to closing. I think for most folks from the U.S., the life insurance requirement would be the major difference. It makes sense though, if you take out a 200,000 Euro mortgage, then you may need a 200,000 Euro life insurance policy just in case something happens to the borrower(s).
If you look closely to your mortgage paperwork here in the USA you will probably find a life insurance policy taken out by the lender for your loan. I know it used to be standard practices .
Thank you, Thomas! We appreciate the comment and your input. - Josh & Kalie
@@machellep1 Thanks for letting me know. How funny that the mortgage companies here in the U.S. don’t say anything about life insurance. I will have to check it out.
in the US they screw you with a add on MIP, (Mortgage Insurance Premium) dont they?. In the US the Vultures know how to scrape every dollar from you.
Any guy who doesn’t blink when he is explaining something is a Great sales man. Great info ….
Wow you earned that shopping spree! Thanks for the super informative post!
Thanks for watching! Unfortunately for me, Kalie did. I have to wait to get a new pair of shoes. 😅 - Josh & Kalie
Great job Kallie! Glad you got the funds. It was a good video to explain the process.
Thanks so much! ❤️🙏 We liked the way that IH laid out the process for us. - Josh & Kalie
Great video and GREAT questions Kalie.
Thanks so much! We're glad that you enjoyed it. - Josh & Kalie
Thanks Kalie! 👏 You were laser focused! Great guests Josh! Super resourceful! Well done! Wow crazy low interest rates compared to US! Almost retired and will be ready to go within two years! I thought US citizens can no longer purchase properties in coastal areas?
Great job Kalie!!! That was so information rich and compact! Awesome as usual. Love it!
Thanks so much, Mo!! We appreciate the feedback and love. ❤️ - Josh & Kalie
Excellent info on the mortgage Process. I can tell that these folks know how to process the loans the right way. If we had these Portuguese running the mortgage loans in the US, we wouldn't have had the 2008 Housing Market collapse. This shows how the US banking and mortgage systems are run by crooks and rogue loan officers in Banks. Surprised to note the rates were in the 1 plus rate. Can you have another episode that covers the additional % age for closing for the landed cost (the equivalent of US closing cost that includes Courier fee, copying fee and other bogus fees which alone cost 1% , in the total 3.5 to 5% closing cost). From what i can tell the system seems to be FAIR and not a robbery like in the US. Great job Kelly.
We hope to do another several episodes when we buy something. 😁 Thank you! - Josh & Kalie
@@ExpatsEverywhere - Wish you Good Luck with your House Hunt. Let us know the House warming party date- will bring the chip, salsa, Guacamole, 7 layer dip and Jalapeno poppers to spice up the party!
Yay Kalie! Awesome interview, awesome wrap up! 👏💕👏💕👏
Thank you, Elizabeth. Kalie has a super power to talk fast! 😂- Josh
@@ExpatsEverywhere 🤣
You guys did great!
Thank you, Reia. - Josh & Kalie
Excellent job explaining the details of every corner this topic entails!
We are a Canadian family working in Denmark and recently started to look into portugal for real-estate investment opportunities... this is by far the best video that the hits the nail on the head
Thank you very much. By chance, have you seen our other video on the mortgage process? 😁 - Josh & Kalie
Can you qualify based on just dividend investment income?
Great question, Wayne. We're guessing that it's possible especially if your dividends are high enough to get a mortgage worth a company lending out if that makes sense, but it might be best to contact a broker on this one because maybe dividend investment income isn't as secure or regular as they'd (banks) like to see. - Josh & Kalie
OMGOSH Thank you! I pretty much gave up getting a overseas loan. I just couldn’t find any information on it. I will definitely be doing this. I don’t like pay rent on something I can eventually own.
Glad it was helpful! Shoot us an email and we'll try to help out with recommendations. contact@expatseverywhere.com - Josh & Kalie
Cool. One thing they never mention is property taxes. As you know, in the US , it is a crucial piece when buying a property. I also heard you must pay a sales tax (vat or IVA, something like that) which is money above and beyond the down payment you should have ready to pay.
This is a nice idea for a new video, IMHO. A big chunk of investment properties are those taxes over time. Renting may be wiser in the long run, particularly if you don’t want to be committed to one area or neighborhood
0.8% stamp tax on purchase, plus a municipal tax that will vary depending on the house value. So for 350k purchase, you pay 16k of this tax. There are Yearly municipal taxes vary depending on several factors, but they are not back breaking.
The municipal tax - imt - is 0% for houses up to 90k, then 2% for 90-120k, and so forth - will vary.
Great feedback relative to taxes!
You're exactly right. Our idea and hope is to get into the nitty gritty details when we actually purchase a property here. We can break it down from our personal experience and hopefully do it in an entertaining way. - Josh & Kalie
Thank you so much. This was extremely useful.
You're very welcome! Let us know if you'd like us to make an introduction. Email me at contact@expatseverywhere.com and I'll take care of it. - Josh
Thanks so much for this video! It's been incredibly helpful!
You're welcome. We're very glad it was helpful! We hope you subscribe for more, Allison. - Josh & Kalie
@@ExpatsEverywhere I've been a subscriber for months. Your content is invaluable.
South Africans- yes we are everywhere. How did you mic Stacey, with all that scarf. Good job. Very informative. Thanks
😊 Indeed! It's hilarious that you mention that because it was actually nestled in the scarf and only once did the mic get scratched. Did you hear it? 😅 - Josh & Kalie
@@ExpatsEverywhere I did hear something. That is why I had to ask because it worked so well apart from that one time.
We got lucky. 😁 It was in that glorious scarf the whole time. - Josh & Kalie
So informative and how you did that without jotting down one note is amazing!! Thanks for another great video and glad you found some clothes at Desigual!
Thank you very much, Suzanne. It was pretty crazy. It took Kalie 5 minutes or so to process her thoughts and then do the challenge! - Josh & Kalie
Thanks for sharing this wonderful video.
Thank you, Yasin. - Josh & Kalie
@@ExpatsEverywhere 🙂
Very informative especially for us in the process of finding a home, so thanks! I would've liked to have seen what you bought...Love Desigual! 😉
Thank you! Kalie can show you in person. 😁 - Josh & Kalie
What a great video, thanks for the information.
Thank you so much, Ivo! That means a lot coming from you. - Josh & Kalie
Oh, I almost forgot then at the closing and you sign it like a 1,000 papers and then you have the keys to your house. Good job explaining all that, Kalie!!!😃
There's always paperwork! We signed a bunch just getting a bank account. 😅 Our hand still has nightmares. Thanks. - Josh & Kalie
Do a video on the process to buy a car….start to finish. Private party and dealer. Thanks.
Josh and Kalie do not work for you. You can ASK them to do such a video and hope they have time to do you, and all of US, that favor. That's how you have to look at their videos, they're doing us FAVORS by sharing their knowledge...we should consider Josh and Kalie as FRIENDS, even if you dont personally know them. I understand they do it for money as well, but you can clearly see they ENJOY helping people.
So don't mean to be rude, but next time ASK, don't DEMAND 🤷♂️.
Thanks for the idea, Gary. We'd need to do it with a car salesman or dealer because we don't plan on buying a car. - Josh & Kalie
Hey, Portugal-BOUNDeXPATS!, thanks for your comment. It's truly okay. We're in a great mood and we didn't read Gary's comment wrongly or like he was demanding it. 😁 We do want to say, thank you for supporting us on here and recognizing that we do this video content creation stuff as a job now and because we LOVE it. We feel completely blessed to be able to do it. We really enjoy making video, love helping people, and we get to make a living doing it. BLESSED. - Josh & Kalie
Considering Josh & Kalie's reply, I truly apologize to you Gary if my statement came off as a rebuke or you took it as being rude, that was not my intention....but intention doesnt matter once an action is committed. So I sincerely apologize! 🙌
@@ExpatsEverywhere if you guys want/can wait until at least summer of 2023, we could do the video together since I'm definitely looking to purchase a car lol. Just an idea...and you guys know you'll always have a ride with us! 😊.
Btw: we're looking at places between Lisbon and Porto(so we're close to both cities), so we'll probably be living within an hour of each other 🤙
This was super helpful! And really encouraging,👍
Awesome! Thank you! We're glad it was helpful. - Josh & Kalie
This is so excellent! Thank you!!
You're so welcome! Glad you enjoyed it. Welcome to ExpatsEverywhere. Glad to have you here. - Josh & Kalie
Hi Kalie, happy that you were able to go shopping. When you decide to purchase a home in Portugal, is there a rwuited home inspection? You did a great job with getting all the mortgage info. I ko e watching you, your husbabd and Sia!
Thank you!!!
Thank you, Nancy. It's not common but we will get an inspection done. We know someone here that does it like it would be done in North America. - Josh & Kalie
Great job! Very clear. Thank you. One question that wasn't mentioned was whether you need to select a property before seeking preapproval.
Thanks, valuable information Kalie, I like to be in touch with the person. Best wishes
Excellent video! Bookmark worthy! I always appreciate getting into the details vs not. BTW-I trust those pastel de nata’s didn’t go to waste. 😁
Thank you for the feedback! Sometimes we're not sure if we're finding the right balance with details vs cutting to the chase. Those pastel de nata definitely didn't go to waste! - Josh & Kalie
Thank you guys , that was soooo good!!🙏🙏😊
Our pleasure! Thank you very much for watching and subscribing. - Josh & Kalie
Priceless!!!!
Nice one injoy it.
Thanks, Jose! We appreciate you watching and taking the time to comment. - Josh & Kalie
Thank you for sharing, am looking forward to stay in Portugal and your information are certainly vital to us, cheers.
Thank you very much. We hope you've been able to subscribe and hit the notification bell so you won't miss our posts. A lot of what we do is Portugal related because we're living here. - Josh & Kalie
Extremely informative video. I think I'll print out my financials when I come to further explore Porto neighborhoods next month. Your Bonfim, especially, and Marques videos sparked my interest. Are you looking to buy in the Algarve now? All my best to you!!! Obrigada!
Hi Elyse, that sounds great. We got your email btw. Nope we just got invited down to Algarve by IH to talk to them about mortgages. - Josh & Kalie
@@ExpatsEverywhere you're going to have so many aunties and uncles in Portugal for Valencia the way you're growing your expat tribe. Truly grateful for you.
Great Video/Great Info!!!!
Thanks for watching! - Josh & Kalie
Very informative
Do mortgages in Portugal have pre-payment penalties? Can you add extra monthly to principle?
Yes, more often than not, there are prepayment penalties and extra monthly payments to the principle would be considered such. - Josh & Kalie
@@ExpatsEverywhere darn! I was banking on, pun intended, being able to withdraw from my 401k when I reach 59 1/2 in a few years to pay a majority of the mortgage (I don't have yet) off. Thankfully I have a sizeable down payment from proceeds of real estate sales. LOVE your content!
Looks like Kalie earned her retail therapy! 😜
😅 STRESS. - Josh & Kalie
Thank you so much it was a great informative video!
You are so welcome! - Josh & Kalie
the interest rates that they pay compared to us is a bargain!! Great info!
Hi Nicole, they've moved up from when this video was shot. Just like they've moved in the US. Let us know if you'd like to be introduce to a mortgage broker. - Josh & Kalie
Great video. Ideal Homes appears to be oriented to properties in the south of Portugal. Who do you recommend for properties in the north?
Hey Kevin, you're absolutely right. Email Josh at contact@expatseverywhere.com and he can pass you some contacts. There's not 1 company/agent up here that we would recommend, but we see them having strong points to consider so it kind of depends on what you're looking for and where. - Josh & Kalie
Hi guys, can you do a video about taxation for an American citizen who has a property abroad and lives in USA or lives abroad, earning money abroad and bought a property for himself or gets a rental income from it? As an American citizen there is an obligation to pay taxes regardless where you live and work. Can you clarify that information for me? How does it work with you, guys? Thanks in advance.
Wow, great job! I just have a question about life insurance: What if the client already has US life insurance, would she still have to get a Portuguese one? And: Is there an obligation to maintain the life insurance policy for the duration of the loan? The reason for this question is that life insurance rates frequently change as you get older (they do on my current US policy).
Hi Mc, thank you! I think that's really a question for the mortgage broker but we're betting that your life insurance in the US won't count towards the ones here. The banks want to be the one carrying the insurance or have collaboration in it to secure their assets. - Josh & Kalie
💯👏👏👏Gonna have to make the challenges much harder 😆 I would have loved to see you throw Kalie into the swimming pool 😅😂
😅 I know, I know! Come help us and we'll get her in the pool. Thanks for watching, G. - Josh & Kalie
Excellent information! I love Pico island! Would be a great place to retire! Are expats welcome?
Thank you, Sandra. There aren't many foreigners in any of the Azores but Azoreans are known to be nice. - Josh & Kalie
Would they finane a multy family house ? A fourplexe as in example
Yes. Shoot me an email if you'd like an introduction to a mortgage broker (contact@expatseverywhere.com). - Josh & Kalie
Good job, Kalie! :)
Thank you!! 😁 - Kalie
Fantastic job kallie. How do I update my cvs info to be a patron
Thank you, Sharon! Send me an email and I'll try to help. We appreciate your consideration to support our work!! My email is info@expatseverywhere.com - Kalie
Very valuable. Thank you.
Glad it was helpful! You're welcome. - Josh & Kalie
Hello, which broker help you,to buy house?Thanks.
Hi Ciprian, email Josh at contact@expatseverywhere.com and he'll make an introduction or two if you'd like. - Josh & Kalie
Does the mortgage include escrow? How does property taxes and insurance work?
I just talked to someone and they don't work like the US. You can get the mortgage and insurance and other debits to be automatic though so you won't miss a payment. The closing cost for the property are paid separately at the time of the deed so that's IMT, IS and the deed/registration of the property. Email us at contact@expatseverywhere.com if you have any more questions. - Josh & Kalie
@@ExpatsEverywhere awesome! thank you for the clarification.
Hi Kalie,
I was impressed! You made it! Shopping was a satisfying way to end the video!!
Kaylee, there is only one question that was not asked but an important one. How much are the closing costs? When I asked another realtor she said it’s about 10% of the sales price. That’s more than we have to pay in the states. It’s like paying the realtors and the closing costs.
10% of $300,000 is 30,000 yikes.
I would have also asked the male realtor how he makes money since he said he doesn’t charge. Do you think you can find out if the closing costs are the same with Ideal homes? I don’t know if it was one specific realtor and that office or if that’s the standard for buying in Portugal.
Thanks!!
Your videos have been so helpful. I’m gathering information and planning.
Thank you, Janis.
We're glad that the ending was satisfying.
The reason we didn't find that question as relevant per se is because the bulk of closing costs have to do with the property sale, taxes and registration, not the mortgage costs.
Idealista.pt actually has a calculator that can show you what you're expected to pay based on the price of the house you're looking at purchasing.
The money that IH mortgage brokers make is on the bank's side for bring them business. The bank pays that commission.
Thanks for the message. If and when we start the home buying process for real, we'll document it all for you all. - Josh & Kalie
Great video. Very clear and helpful. Though gratefully we were able to buy our house for cash. Though i do wonder, looking at the interest rates, if financing the house and investing the cash may have made me more money
Love that you can't carry more than 40% monthly debt. What a nonpreditory approach
Thank you, Anthony. Great to read your message here.
They definitely have a more non-predatory lending approach. - Josh & Kalie
What about possibility for a bridge loan ?
We haven't heard of them being used here in Portugal.
How about buying income properties in Silver Coast, for example, for Airbnb? Have you been there? I am very curious about that area. It seems to be potential area to invest. Please make a video on that. Thank you both!
Thanks for the message. We'll take that on board for sure. We've certainly been up and down the silver coast. Filming outside of Porto is tricky for us with a 2 year old right now. - Josh & Kalie
I'm an independent contractor. I'm guessing the self-employed status would apply to me?
Yes, it would. Email me if you'd like an introduction to a broker. I'd be happy to do that. (contact@expatseverywhere.com) - Josh
I've never had a mortgage. What if you have a twenty year mortgage but pay it off early, say after ten years. Are there any penalties or restrictions in Portugal? Thanks. Great video.
I guess it depends on the bank and the type of mortgage, but Banco BPI would charge 0.5% early repayment fee for either partial or full early repayment on our mortgage. So, say we wanted to pay off €10,000, we would be charged €50 for doing so. My husband is Portuguese so we were able to get a 40-year mortgage, and we opted for variable, rather than fixed or mixed. Hope that helps!
@@tiamarques6247 Thank you!
Thank you very much! In general from what we've been told, there are small (by percentage) repayment penalties for early repayment. - Josh & Kalie
Thank you very much for your detailed response, Tia! - Josh & Kalie
I was a little surprised about the life insurance...Anyone have more experience with that aspect? I would think it's just about percentage down and qualifying income for monthly mortgage...No?
The MIP =- Mortgagee Insurance Protection is anywhere form 0.5 - 1.0% of your loan amount. There is no such thing as a free meal. In the US they are not only killing you with high rates, fees etc and while killing you with high payments, they collect the MIP premium just in case you die prematurely.
@@cookmaster3626 Did I mention a free ride? I did know about MIP and the cost, but didn't know banks require life insurance...I don't think all do just like terms, down payment, etc are different by bank!
Congrats Kaylie,! And where’s that mall? Lol
You're 100% right...haters gonna hate. So true. 😁
That mall....www.designeroutletalgarve.com/ Designer Outlet Algarve. - Josh & Kalie
This was an interesting conversation and it’s great that it was in English, admittedly better absorption of the information. Buying in a different country has a lot to take in, I wonder if the appraisers of banks in PT have stricter rules now that prices are going up with their exposure much greater. Thank you, Kalie and Josh.
Thank you! We appreciate the feedback. We'd love to talk to an appraiser! 😊 - Josh & Kalie
@@ExpatsEverywhere I would love that video.
Thanks. I’ve emailed ideal homes twice and never had a response pretty disappointing
Just curious, who have you emailed? We can reach out to them on your behalf if you'd like. Maybe the email went to spam. 🤷♂️ It happens to us randomly too. - Josh & Kalie
I believe it is mortgage insurance that you will be getting and not life insurance. People get life insurance for their personal needs, banks encourage you to buy insurance based on the value of the mortgage (aka mortgage insurance)to cover you/them if one spouse dies. The cost of a mortgage insurance is very expensive and you get nothing in return when the mortgage is paid off or if and when the property is sold.
It is cheaper to buy separate insurance at a lower rate from a private insurance company to cover the value of the mortgage in case of death of one spouse or loss of income due disability. When I purchased my first property I refused the insurance the bank was pushing for it didn’t benefit me.
We've had multiple real estate professionals here call it life insurance. - Josh & Kalie
It’s actually 2 insurances. 1 life that you pay monthly and 1 on the property per year. For a 250k loan it’s around 80-100€ for the couple for the life insurance if you are above 40 and about 200-250€ per year on the property.
Great information and summation. You should have taken the whole wallet!
😁 Thanks for watching, Walter. She got enough. 😅 - Josh & Kalie
🤣🤣🤣 the male species always lose, when it comes to the fairer sex!
Guys your content is amazing, and come on dude just 100€?
Alright 2 quick questions:
- the 3 years of tax returns have to be from Portugal? So basically one had to live there for 3 years then apply?
- the guys spoke about variable rate of 0.7%, how about the fixed rates? What are the ranges approximately?
Thanks!
Thanks, Ward!
As far as we know, it's tax returns period. So our US tax returns should work. We're inching our way towards doing this whole process and we'll cover it on the channel.
We've seen around 1.7% on fixed rates. That's still 2-3x better than we'll get in the US. - Josh & Kalie
Is this guy from South Africa?
Kind of, yes. Portuguese decent, but moved back to Portugal from South Africa a while ago. - Josh & Kalie
Hey Josh and Kalie, what happens if you get the appraisal back(I forget what they call it) and there are some issues Are They willing to negotiate?
Yeah, it could change the lending amount, which would then put you on the hook for more of a downpayment or it's possible to go back to the seller and talk about price. - Josh & Kalie
Any idea what your credit score and report need to look like to get approved for a mortgage in Portugal? Great video! Thank you.
Hi, it's more income to debt ratio. It's not like a credit score in the US.
Thanks for watching. 😁 - Josh & Kalie
This was very informative. I was planning to pay cash, but perhaps I'll buy two places and have a mortgage.
Thank you, Roy! We're personally big fans of low interest mortgages so we can have more cash out there building equity. 😁 - Josh & Kalie
@@ExpatsEverywhere Good strategy!
Do you have any recommendations for a similar mortgage broker like Idealhomes but closer to Porto? Looks like Idealhomes might be more suited to the Algarve. Great video though, cleared up a lot about the process there.
Thank you, Seano. Yes, email me at contact@expatseverywhere.com and I'll make an introduction for you. - Josh
Can self employed in India can get a mortgage home loan in Portugal
If your income and debt to income ratio is good, Portuguese banks won't discriminate. - Josh & Kalie
We’re in this process right now, what I dislike about this whole process of buying a property in Portugal is the pressure that the estate agent puts on about signing the promise to buy contract and paying the deposit, even before you know if the bank will approve the loan, to me this doesn’t make sense. 🤔
Yes, one must be careful for sure because the deposits are very high. 😅 - Josh & Kalie
Excellent video and just the information I was looking for! So, I assume the seller has to pay Ideal Home a commission ? And funny enough, I looked at your top and thought to myself “ that looks like a Desigual item” and bam 💥 you mention it 😉 🙌, I like those brand too a lot! Hard to find in New Zealand 😂 they are truly at the end of this earth and far behind the moon 🌒 😬 can’t wait to move back to Europe/ Portugal 🇵🇹
Thank you!
The bank actually pays the commission to Ideal Homes for the mortgage broker side. If IH sales the property, that's different as their agent will get a sales commission usually from the seller.
Kalie and I both like Desigual but these days the women's stuff is better than the men's. - Josh & Kalie
That's great! Thank you for clarifying this. :)
Kalies normal speaking is quick, but you put the vid on 1.25 speed or the like. 😃😃
😂 That's why we should have made it a 30 second challenge. - Josh & Kalie
Good Katie can you send me information on this gentleman I’m interested in loan and moving forward thank you
Email Kalie at info@epatseverywhere.com and she'll put you in touch. - Josh
What Jose said is BS. They have me just one option and it was not pre approved. Just an email stating the amount. When I asked for another offer they never called back.
Do they say why they only gave you one option? Was something atypical with your pre-approval form that you know of? If you don't mind, we don't mind reaching out to IH or Joe about that lack of calling you back bit. If you want to email us at contact@expatseverywhere.com I don't mind mediating. - Josh
Hi Guys
I sent this video to my friends who need to watch it because they’re considering getting a mortgage and buying a property in Portugal. One of my friends is asking if we could meet with this mortgage broker. Is that possible? Do you know how we can contact him? Thanks again
Janis
Hi Janis, thanks for sharing the video. 😁 Rafael is based in Aveiro and does met people in person like he did with me. If you're able to go to Aveiro, you can do it too, however, many people just talk to him remotely as he can work with people located anywhere to buy a property in all locations in Portugal. Shoot me an email and I'll make an introduction for you. contact@expatseverywhere.com - Josh
Thank you so much
I never realized it but Kalie somewhat reminds me of Kate Middleton!
Really?! - Josh & Kalie
Thank you Kalie and Josh. really good video. Did you by any chance ask about retirees since they don't have a 'regular paycheck/income' - what proof of income would they need? Thanks and Happy Shopping!
I believe social security checks were mentioned a couple of times as a steady source of income. Cheers! 👍🏻
Hi. Thank you! 🙏 Investment income or pensions work if it's a regular (monthly) source of income like lucchese20 stated. - Josh & Kalie
All types of study income are good to be approved for a mortgage. That is a universal truth. I've purchased 7 properties throughout my lifetime. If you have a pension, social security, passive income, a job, annuities, etc. Any form of money that you constantly and steadily get is what banks want to see before you get a mortgage. They just want to make sure that you're gonna be able to pay that mortgage every month. And another thing... so what if they penalize you for paying off the house before the allotted time Banks want you to keep paying that mortgage forever and ever. But if you have an opportunity to pay off the home mortgage; more power to. Because then when you sell your property you are making a fortune practically.
NEVER do variable rates. If you want to risk loosing everything go ahead. But I can’t believe people do this.
Biggest advice: DONT DO VARIABLE RATE- YOURE AT RISK FOR FORECLOSURE
I just went through the mortgage process myself. There's no way you can explain it in 60 seconds. This video is over 20 minutes long just to explain it at a high level...
Just curious, did you watch til the end? - Josh & Kalie
@@ExpatsEverywhere yes. glad to see it ended in a shopping trip and not a swimming pool dip.
I would have loved for personal satisfaction to send her in the pool. 😅 - Josh
Bro's interest rate advice didn't age well lol 🤣 aside from that, great video very informative thank you guys!
Yea, historic change with the war. - Josh & Kalie
So many procedures to go through to buy a property in Portugal
While the details may vary from place to place, I believe most developed countries have a process with many steps. Cheers. 👍🏻
Hi Therese, it doesn't seem too different than other places. In the US, the just need to know more about us because we're in the "system" and our credit score plays a roll. - Josh & Kalie
@@ExpatsEverywhere So are you saying credit score is not used in Portugal.?
A monthly clothing budget??
Josh….. we need to talk 😂
I'm listening. 👂 - Josh
Wait, wait! Josh has a MONTHLY CLOTHING BUDGET?! OK he qualifies as a Metrosexual hahaha! I have my own 1 minute tutorial on financing a home purchase in PT: ALL CA$H OFFER. Hahahaha. Hey, where’s that video on Lapa? My sister wants to see it before she visits….
Hey, Patrick! We just have budgets in general and line items for things but it's not the first time I've been called a metrosexual although I left those when my modeling days finished. Regarding the lapa video, i'll make it my next edit that I do after this one I'm working on now. When does your sister visit? - Josh
@@ExpatsEverywhere thanks and they’re coming next month- her and her hubby. Gotta get the bed in the spare room asap! Did you ever do runway? Who’s better: Kate Moss or Linda Evangelista? Ha!
Don’t use apostrophes to make plurals. Foreigners is the plural of foreigner. Thank you.
🤦♂️🤦♀️ How did we miss this. Several people had their eyes on this before we hit publish too. Changing it now! Thanks. - Josh & Kalie
Just talk about mortgage and not about what this josh is doing or throwing
Less than 1% now?
No. It's definitely risen and too many people have the variable rate. Things could get ugly. - Josh & Kalie
Will my income be considered as foreign source of income and will i be eligible for NHR if i make money by trading in crypto and NFT?
Ooh, that's a different question than the scope of this video. Have you spoken to a PT tax specialist? That's our recommendation. Email info@expatseverywhere.com if you'd like some names of tax people here. - Josh & Kalie
Lol, you are a good husband because she did not win this challenge- nit even close!
😂 No, why not? Maria was happy with the summary. - Josh
Thanks!
Yumiko! You're so kind!!! How are you doing? I was in CC Bombarda today and thought of you. - Josh & Kalie but mainly Josh speaking here.