Bank valuation in Portugal: how it affects your mortgage

Work out the funding gap from the bank’s actual loan figure

Illustrative example: the agreed property price is €300,000 and the bank confirms a loan of €243,000. The buyer needs €57,000 towards the price, with purchase taxes and other costs budgeted separately. Do not replace the bank’s confirmed figure with an assumed percentage of the asking price.

Before changing the agreement, confirm whether the missing step is the valuation report, the lender’s final decision or evidence of the buyer’s remaining funds. They are different conditions. The buyer should discuss finance with the bank; the parties should have any change to price, dates or contract conditions reviewed by their appointed professional.

• Agreed price minus confirmed loan equals cash needed towards the price.
• Keep purchase costs outside that subtraction.
• Check the property identification, area and condition used in the valuation report.
• Do not assume another bank or another valuation will produce a higher loan.

What is a bank valuation in Portugal?

It is a property appraisal used in a mortgage decision. The bank considers the property value alongside the buyer's ability to repay the loan. The appraisal does not set the asking price, change an agreed price or guarantee that the mortgage will be approved.

For a buyer, the useful question is how much the bank is prepared to lend against this particular property. For a seller, it is whether the buyer can still meet the agreed price and timetable after the valuation arrives.

What INE's July 2026 figures tell you

INE reported a €2,240/m² median for bank valuations connected with housing-credit applications in July 2026, €12 or 0.5% above June and 15.2% above July 2025. Apartments and houses had materially different medians, and the sample composition can change each month.

The statistic summarises valuation reports prepared for mortgage applications. It does not assess the street, floor, light, condition or registration of a particular property.

Keep three values separate

The asking price is a commercial decision, the agreed price is what buyer and seller accept, and the bank valuation supports the lender's credit and security decision. They may differ without any one figure automatically being wrong.

To set an asking price you can justify, consider local comparables, condition, exact location, documents, outdoor space and competing properties currently for sale.

A low valuation may mean the buyer needs more cash

Portuguese guidance calculates loan-to-value (LTV) using the lower of the purchase price and valuation. If the valuation falls below the agreed price, the buyer may need substantially more of their own money, before allowing for taxes and purchase costs.

A higher valuation does not oblige the bank to lend the maximum. Final approval also depends on borrower affordability and the institution's criteria.

• Ask the bank to confirm the valuation and the loan amount it is prepared to consider.
• Calculate the gap between that loan and the agreed price, then add taxes and other purchase costs separately.
• If the report contains a factual error, ask the bank how to submit supporting evidence for review.
• Discuss any funding shortfall and proposed changes with the seller before assuming the sale can continue on the same terms.

Agree the timetable for an offer that depends on a mortgage

Ask whether financing is preliminary or final, when the valuer can attend and when the bank expects to decide. Do not collect unnecessary private banking documents.

Ask the chosen legal professional to record the financing conditions, deadlines and consequences in the CPCV. If the valuation is low, review the evidence and consider whether more funds, more time or renegotiation could resolve the gap. Do not promise that another bank will value the property higher.

Is an IMOJA pricing review a bank valuation?

No. An IMOJA commercial review helps you plan a possible sale. It is not a bank valuation or mortgage approval. The lender confirms which valuation it will accept and decides whether to offer the loan.