Comparing a 6.38% 30-year fixed mortgage quote in Portugal

C

calm_sparrow

First-time buyer
Choosing the wrong comparison could leave me committed to a payment that only looks manageable on the headline rate. The property in Lisbon is around €717,600, and one offer is fixed at 6.38% for 30 years. Once the lender applied its fees and the relevant LTV band, the cheaper advertised option no longer looked straightforward.

My current rule is to use APR for an initial screen, then compare every euro paid over the period I realistically expect to keep the loan. If I am likely to hold it for 30 years, the long-term total matters; if I may move or repay earlier, arrangement charges, early-repayment terms and portability carry more weight. I am excluding property taxes from the lender comparison and do not want a future refinance to be the assumption that makes the payment affordable. Is that the right way to request like-for-like illustrations?
 
I’d use APR to narrow the field, then compare total cash paid over the period you realistically expect to keep the mortgage. A full 30-year comparison can mislead if you may move or repay earlier. What loan amount and LTV produced the 6.38% quote? Without those, it is difficult to tell whether another advertised offer is genuinely comparable.
 
One addition: ask each lender for the same-term illustration with every arrangement fee shown separately. Also confirm whether “30 years fixed” is both the fixed period and the entire loan term. That removes rate-reset risk, but not the cost of selling, refinancing or repaying early.
 
I wouldn’t make APR the deciding number. It is useful for consistency, but your actual monthly affordability and likely exit date matter more. Build two comparisons: keeping the loan for 30 years, and leaving at a plausible earlier date. Include upfront fees and any early-repayment cost stated in each offer, but do not assume portability will be available on acceptable terms later. Then ask the lenders to explain, in writing, why the quoted rate differs from the advertised one.
 
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