Coordinate the bank, outstanding balance, early repayment, mortgage discharge and completion payments before promising a date.
Key takeaways
- Get projected repayment figures early.
- The discharge supports cancellation of the mortgage.
- Document the real payment flow.
A mortgaged property can be sold, but the loan repayment and mortgage discharge must be coordinated with completion. The asking price is not the seller’s net proceeds.
Before accepting an offer
Ask the bank in writing for the projected outstanding balance, interest to the expected date, early-repayment fee, notice requirements, discharge procedure and payment instructions. The Bank of Portugal says the lender must explain the impact and assumptions without delay.
Prepare a closing statement covering sale price, debt repayment, fees, agency, documents, registration and a tax reserve. Update bank figures shortly before completion.
The exceptional variable-rate fee suspension announced by the Bank of Portugal applied only until the end of 2025. Current general information refers to maximum fees of 0.5% for variable-rate and 2% for fixed-rate contracts, subject to the contract, exemptions and current rules.
Mortgage discharge
After full repayment, the bank issues the document used to cancel the mortgage registration. Official guidance refers to a 14-working-day period. Confirm who requests, receives and submits it.
Have the CPCV describe the existing mortgage, payment split, documents, realistic timing and consequences of delay. Coordinate the seller’s bank, buyer’s bank and completion professional. Verify any changed payment instruction through an independent channel.
After the sale, keep the title, repayment evidence, discharge document, registration confirmation, invoices and tax records. This is general information; obtain banking, legal, registry and tax validation.
Worked closing example and current rules
Fictional figures, not a tax calculation or agency quote: total sale price €300,000; principal and interest to settle €180,000; assumed repayment fee €900; other sale expenses including applicable taxes €10,000; a purely illustrative tax reserve €15,000. Estimated funds remaining are €94,100. The reserve is not the actual income tax due. A received deposit is already part of the €300,000 price: do not add it again. The completion payment schedule starts with the unpaid price balance and allocates it between lender and seller. Arrange any shortfall before fixing the date.
Under articles 22 and 23 of the mortgage-credit regime, full early repayment requires ten working days’ notice. The 0.5%/2% ceilings depend on the rate regime at repayment, including within a mixed-rate loan; lower contractual fees or exemptions can apply. After the contract ends with all obligations met, the lender must issue and send the discharge within 14 working days without a fee for that act. Arrange the completion-day documentation in advance: that later deadline does not guarantee instant issue at the sale.
If buying another property, plan the timing of deposits, completion proceeds and any tax reinvestment separately. Review the selling-document checklist.
Editorial review: 21 October 2026, using the official sources linked here. General information; obtain professional advice for the particular transaction.
Official sources and references
Links consulted and cited in the article. Always check the current version for your circumstances.
Editorial note
Prepared by FRANETIC using identified sources. General information only; legal, tax, banking, technical and planning matters require case-specific validation.
