A mortgage does not in itself prevent a sale. Part of the price is normally used to repay the loan and allow the mortgage charge to be removed. The key is to involve the bank early and calculate the transaction’s true net amount.
Before listing
Request up-to-date figures from the lender
- 01Outstanding principal
Request the amount needed to repay the loan on an estimated date and confirm applicable interest, fees and other charges.
- 02Procedure and notice
Ask how to notify full early repayment, which documents will be issued and how much time the bank requires.
- 03Expected net amount
Subtract the debt, sale costs, estimated taxes and other charges from the likely price. This is the amount that matters for your next decision.
At completion
Payment, repayment and cancellation must be coordinated
At completion, the necessary part of the price may be paid to the lender to discharge the loan. The bank issues the documentation needed to cancel the mortgage, commonly called the distrate.
The Bank of Portugal states that, following full early repayment, the lender must provide the document needed to remove the mortgage charge free of charge within the prescribed period. Always confirm the procedure with the bank and the entity preparing the contract.
Preliminary sale contract
Do not promise deadlines the bank has not confirmed
- Before signing the binding preliminary sale contract (contrato-promessa de compra e venda, CPCV), tell the professionals preparing the transaction about the mortgage.
- Coordinate the completion date with the validity of the bank documents.
- Confirm what happens to the deposit if an unresolved obstacle arises.
- If the price will not cover the debt and costs, speak to the bank before accepting an offer.
Verified sources
Official information to check
General information reviewed against official sources available on August 26, 2026. It does not replace legal, tax, financial or technical advice for your circumstances.