Internationaal Vastgoed Makelaar in België en Netherlands – RG SECONDHOMES

Finance your Spanish property


In contrast to the potential of various types of mortgages in other countries (such as savings, investment, and interest-only mortgages) restricted one in Spain in the line to provide mortgages on an annuity basis.

This means that your monthly payments for a portion consist of repayment and partly of interest. At the end of the term is paid the full mortgage amount.

In exceptional cases, a Spanish bank may also accept a part interest-only mortgage. This means that you only pay interest on the loan amount and the original mortgage amount at the end of the term remains "open" state.

However, this type of mortgage is only used on larger projects in the rule, and is on the private housing market generally does not apply.

Amount and duration of the mortgage

The term of a Spanish Mortgage is a maximum of 25 years in exceptional cases 30 years in which the mortgagee may not exceed the maximum age of 70.

For example, someone who is 50 years old will get a mortgage with a maximum maturity of 20 years making monthly payments of course can be much higher.

This period may be extended by allowing for example, one of the kids draw for the mortgage.

The amount of the mortgage supply also depends on several factors.

1. Contribution own resources / maximum mortgage

For non-residents, the maximum height mortgage 60-70% of the liquidation value, where the liquidation value is determined by an independent valuer appointed by the bank.

The liquidation value may deviate from the agreed purchase price in this case is always taken the lowest value for the calculation of the maximum mortgage.

The cost-buyer, which in Spain are approximately 12-13% of the purchase price, are never included in the financing.

If you like Spanish resident are permanently resident in Spain have for some time may have a higher ceiling applicable to mortgage lending.

2. your income

To meet the monthly interest and repayment obligations arising from the acquisition of a Spanish mortgage you must demonstrate that sufficient net ordinary income that is available monthly.

This income can come from permanent employment, pension or self-employment.

The latter set to discuss the banks all kinds of demands and needs one instance of several years the annual accounts approved by an auditor.

A rule of thumb states that in total no more than 35-40% of the net must pay regular income payments on mortgages and loans.

Acceptable proof of income sources include pay stubs, regular payment statements (including dividends, pensions, annuities, alimony and AOW) and tax returns. Sometimes, a statement of the auditor and the buyers bank is also asked that there be regular payment on the account.

If you can not show proof of regular income, you can borrow up to 40% of the appraised value within certain limits.

NOTE: A regular income is even more important than having enough power.

3. Your current situation

Of great importance here are your personal situation, family status, number and age of children, present and future income, asset size and -coMPoNENTS, desires and expectations of further capital accumulation, (expected / required) withdrawals from the funds, your spending habits, age and the equity in your current home, etc.

Note that in Spain the mortgage associated with the property and not the mortgagee. Mortgage details are listed separately in the title deed.

The cost of obtaining a Spanish mortgage

The total additional cost of obtaining a Spanish mortgage will be approximately 2.5 - 3.5% of the loan amount and must therefore be taken into account when calculating the total purchase price. These additional costs include:

  • closing commission
  • Evaluation Costs
  • land registration
  • fees from mortgage lender
  • notary fees
  • tax for mortgage pass

The documents required for obtaining a Spanish mortgage

  • A Spanish bank account
  • NIE

If employed:

  • copy of passport
  • payslips (at least 3)
  • past tax
  • banking and securities funds
  • Statement from employer
  • references bank (s)

If independent

  • copy of passport
  • copy Chamber
  • past tax
  • accounts of the last 2-3 years
  • proof of salary
  • auditor
  • bank statement

If other sources of income

  • supporting documents (inter alia tax)
  • Bank statements

Please feel free feel free to contact us to us without obligation to discuss your personal options.

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