These days, buying a house can be a real challenge. From the high prices of properties to the obligation to have a 10% deposit to purchase them, many portuguese people have to do (and redo) the math before making this decision.
Something very common, especially among couples, is to buy a house together in order to alleviate the burden of the down payment, as well as to see the mortgage installment reduced.
The truth is that two salaries are always better than just one, as this translates into a lower effort rate and therefore guarantees greater security for the bank.
Having two holders of the House Loan turns out to be a way to facilitate the entire process, but what happens if one of you comes in with more money than the other?
The truth is that the members of the couple are not always able to contribute the same amount towards the down payment on the house, for whatever reason, which can later, in the event of separation or divorce, cause some problems when dividing the assets.
Fortunately, there is a way to work on this early in the process. It's not about distrusting anyone, but it's always better to be cautious to avoid future problems.
At the time of the house deed it's possible to write the amounts invested by each of the elements, establishing the percentages for acquiring the property depending on the amount available.
We give you an example:
If you buy a property worth 150 000€, this means you will have to make a 15 000€ deposit (corresponding to the 10% that the bank doesn't finance). If this amount is given by just one member of the couple, it may be recorded that this person is entitled to 55% of the property (initial 10% + half of the 90% that will be financed by the banking institution).
It is, however, important to highlight that this is only applicable to unmarried couples or married couples under a separation of property regime.. If your case is not one of these and you are, for example, married under a community property regime, know that the house will automatically be 50% for each of the elements.
If you're going through this right now and need to take out a House Loan, contact us so we can help you find the most advantageous options.