The Truth About Portugal’s Mortgage Calculators: How One “Pre-Approval” Cost a Client €56,000

Let me say this as clearly as I can: those online mortgage calculators — even the ones from the banks themselves — can be dangerously misleading.

They look professional. They feel trustworthy. They give you that warm sense of “I’ve got this. ”But in reality? They can set you up for heartbreak — and serious financial loss.

The False Promise of the Online “Pre-Approval”

Recently, a client came to me absolutely devastated. They had gone onto a major Portuguese bank’s website and used the bank’s own mortgage calculator. The tool didn’t just give them an estimate — it actually issued a so-called “pre-approval.”

It said they qualified for €560,000.

Excited and confident, they started searching for properties in that price range. They found their dream home, signed a purchase agreement, and paid a 10% deposit — €56,000. Then came the real shock.

When they went into the bank in person to finalize the mortgage, the actual approval came back at just €230,000.

LESS THAN HALF.

They couldn’t complete the purchase, and because the agreement was binding, they lost their entire deposit.

€56,000 — gone.

All because an automated online calculator said “Congratulations, you’re pre-approved.”

Why These Mortgage Calculators Get It So Wrong

Here’s what most people don’t realize: those online calculators (even from official bank websites) use generic formulas, not the real lending criteria.

Many don't consider:

• Your age and how it shortens your loan term.

• Your net income vs. gross income (a massive difference in Portugal).

• Existing commitments like credit cards, car finance, or loans.

• Bank-specific thresholds and internal stress tests.

• Residency status

• Or how income type (salary vs. self-employed) changes everything.

So the calculator spits out a pretty number — one that looks impressive, but couldn’t be further from what the bank will actually offer once a real assessment is done.

The Cost of Bad Information

That client’s experience wasn’t rare. I see this all the time — people walking into banks or signing promissory contracts based on “pre-approvals” that aren’t worth the paper they’re printed on.

And the sad part? It’s all preventable.

If they had come to me first, I would have properly assessed their financial profile across multiple banks, applied real lending ratios, and told them exactly what they could safely afford.

No false hopes. No surprises. No €56,000 heartbreak.

In Portugal, each bank applies its own lending model and criteria — and those models are constantly changing. I'm a professional mortgage advisor who knows those differences inside and out. I know which banks are more flexible, which are tightening up, and how to present your case so you’re seen in the best possible light.

So please — if you’re thinking of buying property here — don’t rely on online banking calculators or generic “pre-approvals.”They might look official, but they can be dangerously inaccurate. Instead, contact me.

My service is completely free of charge — and I deal with the banks every single day.

Honestly, why wouldn’t you want professional guidance when you’re navigating something this important, especially in unfamiliar waters? It’s beyond me.

Because the truth is, what looks like a green light online…is often a red flag waiting to happen.