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  • Writer's pictureJoana Wheeler

How to buy a property without savings?

Updated: Jul 14, 2022

In recent years, the usual among the Portuguese is to ask the bank for a loan to be able to buy a house.

Housing credit is an attraction that the bank has made available, since interest rates are low. After all, buying a house without savings is very difficult, given that there are the expenses of the incoming money, those inherent in the transaction, among others.

However, there are five ways you can buy a house without having any savings.


The purchase of real estate in recent years has become a more complicated operation than it was during the housing bubble. Currently, with the help of the bank with financing of a maximum of 90% of the evaluation or purchase price of the house, it means in other words that it is mandatory to have savings in order to be able to give a deposit of 10%, in addition to transaction expenses and taxes.


Even with the pandemic, the buying and selling business has not fallen, on the contrary, it is on the rise. This is possible given that there are 5 distinct ways that allow you to buy a house even if you do not have enough savings.


1. Family loan

For those of you who have enough family members with savings, it is possible to apply for a loan to buy a property with a shared mortgage.


2. Buy a new build property

Buying the property before the work is finished, or even before it has started, allows you to be able to pay the installments until you can reach the initial 10% of the deposit, which banks do not finance in housing credit, saving themselves on paying taxes as well.


3. Family apply for a personal loan

With the lack of savings, another solution is for a close family member to apply for a personal loan from the bank in order to cover the initial amount. This is one of the riskiest alternatives, as it provides for extra debts being built up.


4. Rental with purchase option

This option consists in the preparation of a lease, which ensures that after a certain time the tenant has the right to purchase the property at a price already agreed with the owner, thus being able to discount the amount he/she has paid through the rents until the time of negotiations for the purchase.

For both the tenant and the property owner, there is an advantage in this option. The tenant gets to know the property and area in and out, which will help him/her make a decision whether the property meets his/hers requirements, before even formalizing the purchase. For the property owner, this option gives peace of mind that if it does not as planned, the buyers commitment will be limited to interrupting the lease under the usual legal conditions.


5. Buy a property from the bank

Buying a property from a bank is a way to access the purchase of a property with a lack of savings. Given that the main business of banks is not real estate, they offer the most affordable properties, also presenting financing solutions adapted to this category of purchase. These categories of housing credit offer great conditions for customers, since the bank has the interest of dismembering these properties, allowing to finance above 90% with exemption from the evaluation commission.


After understanding the five possible actions to buy a house, even without savings, be sure to visit the www.abracadabra.pt site to know the properties we have available to you.



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