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.
Run the numbers
How much remains after the sale?
Deduct the loan, agency fee with VAT, charges and tax reserve to estimate the cash remaining.
Before listing
Request up-to-date figures from the lender
- Outstanding principal
Request the amount needed to repay the loan on an estimated date and confirm applicable interest, fees and other charges.
- Procedure and notice
Ask how to notify full early repayment, which documents will be issued and how much time the bank requires.
- Expected 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 has 14 working days to issue and deliver the debt discharge declaration. Limited exceptions to free issuance relate to how consent to cancel the mortgage is given. Confirm the procedure and actual charges 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.
Useful tools and further reading
Banco de Portugal
Mortgage calculator
Compare instalments and total cost for different amounts, terms and rates. The simulation is neither a loan offer nor credit approval.
Open external toolVerified sources
Official information to check
General information reviewed against official sources available on September 23, 2026. It does not replace legal, tax, financial or technical advice for your circumstances.