Portuguese Mortgage Market Heats Up: Maxfinance Reports Record €265 Million in New Home Loans for October

In a powerful demonstration of the Portuguese real estate market's underlying momentum, Maxfinance, the nation's largest credit intermediation network, has reported a record-breaking performance for October 2025. The firm originated over €265 million in new housing credit, facilitating property acquisitions for approximately 1,500 families. This surge in activity, predominantly driven by new home purchases, provides a critical data point for foreign investors, signaling robust buyer demand and a liquid market, especially in key economic hubs like Lisbon.

The report from Maxfinance offers a granular look into the mechanics of the current market. The average loan size of €170,000 suggests that market activity is not confined to the luxury segment but is broad-based, reflecting a healthy ecosystem of first-time buyers and families upgrading their homes. This is a vital sign of a sustainable market, as it indicates that demand is not solely reliant on high-net-worth individuals or foreign investors. Furthermore, the preference for mixed-rate mortgages highlights a growing sophistication among borrowers, who are seeking to mitigate the risks of interest rate volatility—a key theme in today's global financial environment.

This performance is contextualized by a significant structural shift in the Portuguese financial landscape. According to the Bank of Portugal, the role of credit intermediaries has become paramount. These professionals now facilitate 57% of the total volume of new housing loans, a figure that underscores their importance. For any investor, particularly those from abroad, this statistic is a clear directive: engaging with a professional mortgage broker is no longer just an option but a strategic necessity for navigating the local lending environment and accessing the best possible financing terms. This is a crucial aspect of our comprehensive buying guide.

Market Implications for Investors

The Maxfinance data provides several actionable insights for real estate investors. Firstly, the sheer volume of transactions is a powerful counter-narrative to fears of a market slowdown. It confirms that a deep pool of qualified buyers exists and that they are successfully securing financing. This liquidity is fundamental to investment, as it ensures that property assets can be sold within a reasonable timeframe, providing a clear exit strategy.

Secondly, the acceleration in activity, with a 22.8% increase in the third quarter of 2025 compared to the previous year, suggests that the market is not just stable but growing. This momentum, as stated by Maxfinance CEO Francisco Ferreira Lima, is powered by increased efficiency, technological adoption, and a wider market presence. For an investor, this indicates a mature and professionalizing ecosystem that is becoming more transparent and easier to navigate.

Finally, the dominance of intermediaries signals a competitive lending environment. Banks are actively competing for business through these channels, which can lead to more favorable terms for borrowers. Investors who leverage the expertise of a well-connected broker can benefit from this competition, potentially securing lower spreads or more flexible loan conditions. This competitive dynamic is a key feature of the current market intelligence landscape.

The Structural Role of Credit Intermediaries

Understanding the intermediary landscape is crucial for any serious investor in Portuguese real estate. With around 6,000 authorized intermediaries in the country, they have become the de facto gatekeepers of housing credit. The Bank of Portugal's data reveals their systemic importance.

The ecosystem is defined by the following characteristics:

• Primary Distribution Channel: Intermediaries are responsible for distributing 57.4% of all housing credit granted in 2024, making them the main point of contact for most borrowers.
• Specialized Knowledge: While many intermediaries focus on consumer credit, a dedicated cohort of over 20% specializes in housing credit, offering the deep expertise required for complex property transactions.
• Efficiency and Access: As Mr. Ferreira Lima noted, these networks are increasing their conversion ratios with banks due to enhanced efficiency and professionalism, translating into better and faster outcomes for clients.
• Regulatory Oversight and Evolution: The Bank of Portugal's plan to reform the regulatory regime by 2026 to improve transparency will further bolster the credibility and reliability of this channel, reducing risks for investors.

This institutionalization of the brokerage model is a sign of a maturing market, aligning Portugal more closely with practices in other developed economies.

Investment Considerations

For foreign investors, the message from this data is unequivocal: the path to successful property financing in Portugal runs through professional credit intermediaries. Attempting to approach banks directly can be a slow and often frustrating process, especially for non-residents. A qualified broker, particularly one from a large network like Maxfinance, can present an application to multiple lenders simultaneously, manage the complex documentation requirements, and negotiate on the investor's behalf. This is especially critical for those seeking to invest in off-plan properties in Lisbon, which can have unique financing requirements.

Investors should vet potential intermediaries based on their experience with international clients, their network of banking partners, and their understanding of investment-focused financing structures. Engaging with English-speaking accountants and lawyers in conjunction with a mortgage broker creates a powerful professional team to ensure a seamless and optimized transaction.

The preference for mixed-rate loans also offers a strategic consideration. This product can provide a valuable hedge, offering stability during the initial years of ownership while preserving the potential to benefit from lower rates in the future. Investors should discuss this and other structured products with their broker to align their financing with their long-term investment horizon.

Future Outlook

The robust mortgage origination figures from October provide a strong tailwind for the Portuguese real estate market heading into 2026. They demonstrate that the fundamental demand for housing remains strong and that the financial system is effectively supporting this demand. While macroeconomic headwinds and interest rate policies will continue to shape the market, the high level of transactional activity points to a resilient and adaptive ecosystem.

The ongoing professionalization of the credit intermediation sector, supported by regulatory enhancements, will continue to improve transparency and efficiency, benefiting all market participants. This solid foundation in the credit market is a key pillar supporting stable and sustainable growth in Portuguese real estate. For expert advice on leveraging these market dynamics for your property investment strategy, contact realestate-lisbon.com.