Getting a mortgage in Spain: the costs involved and what to expect when applying
In this article, Laura and Marien from our Ciudad Quesada office answer the ten most frequently asked questions about getting a mortgage in Spain.
They explain the process of getting a mortgage in Spain, the costs involved, and what to expect when applying.
Top 10 Frequently Asked Questions about getting a Mortgage in Spain
- Can foreigners get a mortgage in Spain?
Yes, foreigners can get a mortgage in Spain and normally they will receive between 60%-70% from the value of the property. They will also have to take into account a budget from 10%-13% regarding other costs such as notary fees, land registry fees, taxes associated with the purchase, and legal fees. - How long does the whole process take approximately?
The mortgage process usually takes between four to eight weeks, depending on the banks and how quickly the documents are provided. - What documents will the bank ask for?
Normally banks ask for an NIE Number, passport, and proof of income (such as pay slips). Documents that prove your assets and liabilities will also be required. - When should I start arranging my mortgage? Could I do it before I find a property?
Yes, you can get a pre-approval before finding a property, and for that reason it’s important to start early. The first step is to get a financial assessment from a bank to check if you are eligible for the mortgage. - What happens if my application is rejected?
In this situation, you can explore other banks and valuators. - Once approved, what would be the next process?
The next step would be to value the property. The bank will issue a formal offer and you will have a 10 day cooling period to think about the terms and conditions before signing the deeds. You can do this by yourself, or via a previous deed, or through a Power of Attorney. Once that’s confirmed, you can then sign the mortgage deeds. - What are the costs associated with a mortgage in Spain?
Normally the cost of the mortgage is paid by the bank. The buyer only has to take into account the purchase cost along with the valuation fee, the opening fee, and sometimes a small administrative cost. It is important to have in mind that when you get a mortgage, it is compulsory to have a home in Spain. - What interest rates are currently available?
In Spain, rates vary, but normally it’s around 2.5% to 4%. It depends on fixed or variable rates and also on the applicant’s profile. - Can I repay my mortgage earlier if I have the funds?
Yes, early repayment can be done, but it is possible that a bank will charge you with small penalties – though this depends on each bank. - Is it better to apply directly with the bank or use a mortgage broker?
A broker can offer access to multiple banks and better terms, especially for non-residents, so it is often the preferred option. Lawyers such as My Lawyer In Spain work closely with trusted mortgage brokers here in Spain.
We hope that you have found this information useful. If you are in the process of getting a mortgage or are thinking of doing it, you can contact us at [email protected], or watch some of our other videos on our YouTube channel.
