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.
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.
