You have found a home in Seixal, estimated the monthly mortgage payment and set money aside for the purchase. But one figure could still change your plans: the bank's valuation of the property.
September 2026 figures, released on 27 October, brought the subject back into the news. Statistics Portugal (INE) reports a national median bank valuation of €2,278/m², up 14.2% over a year. In the Setúbal Peninsula, the year-on-year increase was 18.4%, the highest among the regions, according to ECO's coverage of the results.
For buyers, the practical question is how the valuation affects financing. Existing borrowers may want to review their mortgage and compare a transfer to another lender. State support also deserves attention, because different measures have different purposes and eligibility rules.
What does the increase in the Setúbal Peninsula mean?
These figures concern valuations associated with mortgage applications. They do not mean that every home in Seixal has gained 18.4% in value, or that the same percentage can be applied to a particular property.
Nor are they a schedule of sale prices. A regional median helps track the market, while an individual valuation depends on the property and its assessment.
If you are looking in Torre da Marinha, Amora or elsewhere in the municipality, use the news as a reason to prepare your financing. Avoid increasing your budget solely because the regional indicator has risen.
Purchase price and bank valuation: why are they different?
The purchase price is the amount agreed between buyer and seller. The valuation is a technical estimate considered by the bank in the lending process. The taxable property value, known as VPT, is a separate reference used for tax purposes.
For an owner-occupied permanent home, Banco de Portugal explains that the general financing limit is 90% of the lower of the purchase price and valuation, subject to special schemes. A bank may offer less, depending on its assessment of the borrower and transaction.
A valuation above the purchase price does not, by itself, remove the need for your own funds. A valuation below the price can increase the cash required.
Example: a €250,000 home valued at €230,000
Consider an owner-occupied permanent home purchase outside special schemes, with a bank willing to lend 90% of the applicable reference value:
| Item |
Valuation equals price |
Valuation below price |
| Purchase price |
€250,000 |
€250,000 |
| Bank valuation |
€250,000 |
€230,000 |
| Illustrative financing at 90% |
€225,000 |
€207,000 |
| Own funds to complete the price |
€25,000 |
€43,000 |
The second scenario requires an additional €18,000 towards the price. Applicable taxes and transaction expenses, such as registration and completion costs, are additional, taking any exemptions into account.
Any deposit already paid to the seller forms part of the purchase price. Count it towards your own contribution rather than adding it again as a separate expense. Its payment date still matters when planning your available cash.
This is not a mortgage offer and assumes approval by the bank. It illustrates why it helps to test a valuation below the asking or agreed price before making commitments.
What should you prepare before proceeding?
Build a plan with four parts: money to complete the price, taxes, transaction expenses and a reserve for unexpected costs. Then test what happens if the valuation is lower than expected.
Before signing a promissory purchase agreement, seek clarity on financing and the consequences of a mortgage being declined or falling short. Have the contractual terms reviewed by a qualified professional, including whether a financing condition is appropriate.
Our mortgage guide can help with your initial planning. An early assessment helps organise the application, while the final decision also depends on the property and lender.
Already own a home? What about transferring your mortgage?
The news also matters to existing borrowers. A higher valuation does not automatically reduce the spread, interest rate or instalment on your current mortgage. Changing terms requires negotiation with your bank or assessment of another lender's offer.
When considering a transfer, the new lender assesses the application and the security offered. To illustrate the relationship between debt and valuation, an outstanding balance of €160,000 represents 80% of a €200,000 valuation, or 64% of a €250,000 valuation.
This is an arithmetic illustration, not an approval rule or a prediction of property appreciation. The accepted valuation, rules applying to the transaction, income and other lending criteria still matter.
Compare the full cost of changing lender
Request offers for the same outstanding balance and, where possible, the same remaining term. Compare the instalment, interest-rate structure, insurance, linked products, annual percentage rate of charge (TAEG) and total amount payable (MTIC), including the assumptions behind each illustration.
Include both exit and new mortgage costs. The Bank Customer Portal states general early repayment fee limits of 0.5% of the amount repaid for variable-rate loans and 2% for fixed-rate loans. Check your contractual fee, any current exemptions and which interest-rate period applies to a mixed-rate mortgage.
Ask about valuation, registration, completion expenses and the conditions of any promotion covering costs. A lower payment achieved by extending the term may increase the total cost.
As an initial calculation, if net switching costs were €1,200 and the overall monthly reduction were €40, recovering the cost would take 30 months. This approximation assumes that the difference remains unchanged and does not replace a complete comparison of the contracts.
Read more in our article on mortgage transfers and comparing borrowing costs.
State support: which measures should you distinguish?
The public guarantee: the valuation still matters
The scheme described by Banco de Portugal may enable financing of up to 100% of the transaction value for eligible buyers aged 18 to 35 purchasing their first owner-occupied permanent home. Transaction value means the lower of the price and valuation and must not exceed €450,000.
For a €250,000 purchase valued at €230,000, even financing 100% of that reference would leave €20,000 to complete the price, plus applicable expenses. This is an illustration, subject to eligibility and the bank's decision.
Other requirements include tax residence, income, tax and social security compliance, and not owning residential property. The guarantee is not a cash grant and does not remove the obligation to repay.
As checked on 29 October 2026, Banco de Portugal's portal still states 31 December 2026 as the deadline for concluding covered loan agreements. For a later purchase, check the legislation and lender availability rather than assuming an extension is operational.
IMT Jovem: a tax exemption with separate conditions
IMT Jovem may reduce acquisition taxes for eligible buyers aged up to 35 within the applicable legal thresholds. It covers property transfer tax (IMT) and stamp duty on acquisition under the scheme; it does not mean that all loan taxes and transaction expenses are exempt.
Conditions in the IMT Code include a first owner-occupied permanent home purchase, not being treated as a dependent for income tax in the year of acquisition, and restrictions on ownership of residential property at the purchase date and during the previous three years.
The tax exemption and public guarantee are separate measures. Eligibility for one does not establish eligibility for the other. Changes proposed for 2027 must be distinguished from the rules applying on the completion date.
Can you transfer a mortgage that already has the public guarantee?
Ministerial Order No. 236-A/2024/1, article 3(14), provides for the guarantee to continue for its remaining duration when transferring the loan, provided the receiving lender has joined the protocol and has sufficient guarantee allocation to accommodate the transaction.
Confirm these conditions with the lender before proceeding. Transferring does not restart the guarantee period. This provision concerns continuation of an existing guarantee; it does not give any older mortgage automatic access to the scheme.
A straightforward mortgage transfer is also not a new property purchase that, by itself, creates a new IMT Jovem exemption.
What should you bring to an assessment with DSIC?
For a purchase, start with the expected price, available savings, income and existing loan payments. If you have found a property, collect the information available and mention whether you want to check first-home support.
For a transfer, add the outstanding balance, remaining term, current rate, next review date and the cost of insurance and linked products. If your mortgage has a public guarantee, mention it at the first contact.
DSIC Seixal Torre da Marinha can help organise the assessment and compare offers from the institutions it works with. The service is free to the customer, with remuneration paid by the financial institution with which the contract is concluded. Lending and terms depend on the bank's assessment.
Frequently asked questions
Does the regional increase mean my home is worth 18.4% more?
No. It is the year-on-year change in a regional bank valuation indicator and does not determine an individual property's value.
If the valuation exceeds the price, can I borrow more than 90% of the purchase price?
Under the general framework illustrated here, the reference is the lower of the two figures. A higher valuation does not increase that base. Special schemes require separate assessment.
Can I challenge a valuation I disagree with?
Banco de Portugal explains that you can complain in writing to the lender about the findings and reasoning, or request a second valuation at your expense. Neither guarantees a different outcome or mortgage approval.
Does transferring guarantee a lower monthly payment?
No. It depends on available offers, costs and your circumstances. Compare the total cost and what happens after any initial fixed-rate period.
Can I use a valuation report prepared for another bank?
You can submit a report issued less than six months earlier, subject to legal requirements. Acceptance conditions and circumstances allowing refusal are explained in Banco de Portugal's frequently asked questions.
Turn the news into a plan for your home
The direction of bank valuations in the Setúbal Peninsula deserves attention. The useful next step is to understand what it means for your purchase price, savings, existing mortgage and potential support.
Planning a purchase or considering a mortgage transfer? Request a free assessment from DSIC Seixal Torre da Marinha, selecting Mortgage Credit in the English form. Tell us your objective so we can help compare solutions for your circumstances.
Sources consulted
Information checked on 29 October 2026. Examples are illustrative and do not constitute mortgage offers or tax calculations.
