Financial advice
Mortgage in Spain: Everything you need to know!
Read here everything you need to know about the mortgage requirements, interest rates and purchase procedure when taking out a mortgage in Spain.
Do you dream of a second home in Spain? Then you probably also need a mortgage to finance this. Applying for a mortgage in Spain can be complex, so it is important to be well prepared.
In this article we explain to you how a mortgage works in Spain. We discuss the mortgage requirements, interest rates and purchasing procedure.
Requirements when applying for a mortgage in Spain
The mortgage requirements in Spain are comparable to those in the Netherlands. You must contribute at least 20% of your own money and your income must be sufficient to pay the mortgage costs.
The maximum mortgage amount depends on your income, the value of the house and your age.
Interest rates when taking out a mortgage in Spain
Mortgage interest rates in Spain are currently relatively low. The average interest rate for an annuity mortgage is approximately 2.5%.
Purchase procedure when a mortgage is needed in Spain
The purchasing process of a house in Spain is similar to that in Belgium and the Netherlands. You make an offer on a house, negotiate the price and conclude a purchase agreement.
If you need a mortgage, you must apply for one before concluding the purchase agreement.
What Documents Are Needed for a Mortgage in Spain?
Before you start applying for your mortgage, it is smart to gather all the required documents. This allows the advisor to quickly determine the amount of your mortgage for your Spanish home. To know which essential documents are required for the mortgage file, we must make a distinction between salaried and self-employed persons.
Wage earner:
- Pay slips for the past three months
- Most recent tax return
- Extract from BKR (NL) or extract from the Central Office for Credit to Private Individuals (Belgium)
- Mortgage statement from bank for your own home
- All account statements from the past six months
Self-employed:
- Two most recent annual accounts
- Two most recent tax returns
- Extract from BKR (NL) or extract from the Central Office for Credit to Private Individuals (Belgium)
- Mortgage statement from bank for your own home
- Bank statements for the past three months
- In case of rental income, all rental contracts
Contributing your own resources when buying a house in Spain
To get a better idea of the affordability of the house in Spain that you are considering buying, it is advisable to take your own financial contribution into account.
When purchasing a property in Spain, non-residents can usually finance a maximum of 70% of the sales price (or the appraised value, which is often lower). You must be able to finance the remaining 30% of the sales price from your own resources. In addition, there are the so-called "buyer costs," which are usually about 14% of the sales price. However, this is a general explanation.
For more detailed information and an adjusted calculation, we recommend that you speak to a mortgage advisor. If you're interested, let us know and we'll be happy to put you in touch with them.
Conclusion for taking out a mortgage in Spain
Applying for a mortgage in Spain can be complex, but it is certainly not impossible. By being well prepared and following the right steps, you can become the proud owner of your dream home in Spain in a short time.
Do not hesitate to contact us for more information about our new build homes for sale on the Costa Blanca. Your new life in the Spanish sun starts here.
Have a look to our full range of Houses for sale in Spain
