Home Insurance

• Insures the property that the Bank is going to mortgage. This insurance has 4 types of cover: building, contents, comprehensive (building + contents) or construction (for self-built homes). The sum of the insurance premium is calculated based on the number of rooms, the required coverage and the geographical location of the property to be insured.

Life Insurance

• The premium for this insurance is calculated, inter alia, based on the age of the housing credit holders, the loan amount and the risk the operation entails, covering situations of death and absolute and permanent disability. The sum of the insurance premium is defined by the Insurance Company with which the customer takes out the insurance.

What are the rates?

• Blended Rate - For loans taken out under a blended interest rate, the parties agree that the loan agreement has a period in which the rate is fixed, followed by a period in which the rate is variable. For example, a 30-year housing loan may have a fixed rate for the first 5 years and a variable rate, indexed to Euribor, for the remaining 25 years. The following fixed rates are available:
  • Fixed rate from 2 to 5 years, 10, 15, 20, 25 or 30 years.


• Variable Rate - For housing loan agreements with a variable interest rate, the interest rate results from the sum of the reference rate and the spread:
  • Reference rate (benchmark interest rate) - usually corresponds to Euribor (European Interbank Offered Rate), which is the reference rate.
  • SPREAD - The interest rate component that is in addition to the reference rate. The spread is defined by the Bank, taking into account the customer's credit risk, the ratio between the loan amount and the property value (loan-to-value), and the cost of financing. The Bank does not review the value of the reference rate at a frequency other than the index period (12-month Euribor).


• ANR - The annual nominal interest rate (ANR) represents the cost associated with interest on the loan.


• APR - The annual percentage rate (APR) represents the effective cost of the loan, which takes into account a set of expenses inherent to the housing loan. This rate reflects the periodicity of payments and all recurring charges relating to the loan, namely repayment of the capital, remuneration interest and fees and expenses related to the loan (life insurance and multi-risk housing insurance premiums, fees for opening proceedings and evaluation costs, current account maintenance fee, credit usage stamp tax loan and loan formalization costs).

Which products should you subscribe to for a spread bonus?

• Bank Starter Pack - Composed of basic products related to the Bank. The allocation of a 0.6% Bonus to the applicable spread depends on whether you have 2 of the products/services listed:
  • Direct Debit
  • Conta + Ordenado or Conta Protocolo Ordenado or Conta Protocolo Especial


• Protection Pack - Composed of insurance from GamaLife and GNB Seguros, SA. The allocation of a 0.2% Bonus to the applicable spread assumes that you cumulatively have 2 of the products/services listed:
  • Life insurance associated with the housing loan
  • Maxi or Top multi-risk insurance associated with the housing loan


• Binding Pack - Assignment of a 0.2% Bonus to the spread if you belong to the Loyal Affluent Segment.

• Throughout the term of the loan, the customer will receive the maximum bonus in accordance with the commitment products duly selected in origination and always up to the minimum grid spread.


• These bonuses only apply in the process of negotiating new Housing Loans and do not apply to contractual changes.


• The spread bonus for purchasing products does not apply for the following loans: Moving House, Multisolutions, Autonomous Garage, Down Payment, Foreign (Non-Resident).

Which types of property can I take out a housing loan for?

• First home - Habitual household residence (permanent own home).


• Second home - Non-habitual household residence (holiday home or other).


• Income housing - Residence for earning income by renting it out.


• Garage/Parking Space - Garage, provided that it is separate from the home.

For what purposes can I take out a housing loan?

• Purchase - To buy the property (house or garage).


• Construction - To build on own land (construction permit and approved project required).


• Improvements - Making improvements to your own home or rented housing.


• Purchase and Associated Improvements - Simultaneous purchase and improvement of property.


• Construction - May include the purchase of land (with construction permit and approved project) and construction of the home.


• Loan Transfer - Transfer a Housing Loan held at another bank to NOVO BANCO (option to increase the amount and term of your loan).


• Mortgage Loan - Loan for purposes other than the above, with a mortgage on the property.

What is the maximum term of the loan?

• Maximum: 40 years provided that the eldest loan holder does not exceed 75 years of age when the loan matures. The longer the term, the lower the value of your monthly repayment.