Housing Loan: how to sell your current house to buy a new one?

Can I sell my house and buy another?

Yes, it is possible, but when there is an ongoing housing loan, it is necessary to coordinate the sale of the property with the loan settlement and the new financing. The first step is to understand how much is still owed to the bank.

How much do I still owe on the loan?

Check the debt capital of your current loan. This value is essential because when selling the house, part of the sale value may be used to pay off the loan associated with the property.

For example:

Selling price: 300,000 €
Debt capital: 180,000 €

In simplified terms, there would be a difference of 120,000 € before considering taxes, commissions, expenses, and other operation costs.

Can I buy a new house before selling the current one?

It may be possible, but it depends on your financial capacity and the credit institution's analysis.

Have two credits at the same time means supporting two financial obligations.

In the solvency assessment, payments from other credits are considered. Banco de Portugal states that the DSTI ratio considers monthly installments of loans held by the client, including the new installment.

That's why this situation should be planned before signing a new contract.

What if you sell first?

Sell first can reduce financial pressure because it allows knowing the actual value obtained from the sale, and depending on the situation, settle the current loan before taking on a new one. But there is another challenge: finding a new home within the required time.

Can I transfer the current credit to the new house?

Do not assume that the loan can simply be transferred from one property to another. It is necessary to talk to the financial institution and understand if there is any contractually possible solution. In many cases, buying the new house implies a new loan operation.

What to calculate before deciding?

Do these calculations:

Current home value.
Debt capital.
Estimated selling value.
Selling associated costs.
Value available for the new home's down payment.
Price of the new housing.
New financing needed.
New payment.
Family financial capacity.

Buy first or sell first?

There is no universal answer. Selling first may offer greater financial predictability. Buying first may avoid selling in a rush, but may involve carrying two loans for a period. The decision depends on your financial situation, the market, and financing conditions.

Selling a house with housing credit to buy another requires more than comparing the prices of the two properties.

It is necessary to analyze the debt capital, the expected sale value, the operation costs, and the ability to support the new financing.

Are you thinking of moving house? Do your simulation at Poupança no Minuto and analyze financing options for your new house. No costs and no commitment.

FAQ

Can I buy a new house before selling the current one?

It may be possible, but you will have to demonstrate the ability to support the costs of existing credits and the new financing.

What happens to the home loan I am selling?

Normally, the sale involves handling the settlement of the credit associated with the property, according to the applicable conditions.

Can I keep the current credit?

It depends on the contract and the agreed solution with the credit institution.

Is it better to sell first or buy first?

It depends on your financial capacity, the value of your current house, and the conditions for financing the new purchase.