How to Buy a House Without Savings
Real Estate

How to Buy a House Without Savings

29 Nov 2021

In recent years, it is customary in Europe to ask for a loan from the bank in order to buy a house. Housing credit is an attraction that the bank has made available, as interest rates are low. After all, buying a house without savings is very difficult, bearing in mind that there are expenses with the down payment, those inherent to the transaction, among others. However, there are five ways you can buy a house without saving aside

Buying real estate in recent years has become a more complicated operation than it was during the housing bubble. Currently, with the help of the bank, with a maximum financing of 90% of the valuation or purchase price of the house, it means, in other words, that it is mandatory to have a savings account to be able to pay the down payment of the remaining 10%, in addition to the expenses and taxes of transaction.

Even with the pandemic, the buying and selling business did not fall. On the contrary, it is on the rise. This is possible since there are 5 different ways that allow you to buy a house even if you don't have enough savings.

1. Loan from family members

For those who have family members with sufficient savings, it is possible to apply for a loan so that they can proceed to buy a property on a regular basis.

2. Buy a property from the blueprint

Buying the property before the construction is finished, or even before it has started, it allows you to pay in installments until you reach the initial 10% of the down payment, which banks do not finance in mortgage loans, saving you in the payment of taxes too.

3. Family member applying for a personal loan

With the lack of savings, another solution is for a close family member to apply for a personal loan to cover your initial amount. This is one of the riskiest alternatives, as it provides for extra indebtedness.

4. Renting with option to buy

This option consists of drawing up a rental in which it guarantees that after a certain period of time the tenant has the right to purchase the property at a price already agreed with the owner, thus being able to deduct the amount paid through the rents until the time of the negotiation for the purchase.

For both the tenant and the owner of the property, there is an advantage in this option. The tenant can get to know the house more deeply, the area where they will buy the property and see if it suits their requirements and needs even before formalizing the purchase. For the landlord, this option brings the peace of mind that if the plans do not go as expected, their commitment will be limited to interrupting the lease agreement under the usual legal conditions.

5. Buying a property from the bank

Buying a property from a bank is a way of buying a house without savings. Since the banks' main business is not real estate, they offer properties at more affordable prices, also offering financing solutions adapted to this category of purchase. These categories of mortgage loans offer excellent conditions for customers, given that the bank is interested in getting rid of these properties, allowing for financing above 90% with exemption from the appraisal commission.


Once you have understood the five possible ways to buy a house, even without savings, be sure to visit Portal to discover the properties available for purchase throughout Portugal, Spain and Greece.