Non residents are eligible to apply for a mortgage when buying a house in Spain. We recommend shopping around at least 3 or 4 banks as every year conditions vary from one bank to another.
Usually non residents can obtain financing from between 50 to 80% of the purchase price via a mortgage loan.
Proof and origin of income or financial capacity (salary, income declarations for the last years, savings, other revenues…).
Proof of absence of debts in your country.
Spanish banks require you to have the house you are buying insured and usually they require that you take out the insurance with their insurance company.
Personal life information may be solicited too (job history, family, regular living expenses…).
Documents from abroad must be translated (often with a verified translator) into Spanish or English/French, depending on the bank.
You will have to pay commissions for the mortgage application (inquire or have us inquire everything and have them print out in detail every fee….).
Additionally, banks appraise the value and condition of the house…That appraisal expense will be charged to you.
Aside from the 8-10% of the purchase price payable to the regional government, the mortgage itself entails another tax (the Impuesto de Actos Jurídicos Documentados or AJD) which is between 0,5-1,5% of the purchase price, again depending on the region.
Then, add the notary fee and the Property Register fee, which might be, together, around 0,7 of the purchase price; again, these are the costs pertaining just to the mortgage, not the purchase deed (which are slightly higher, around 1%).
THE MORTGAGE CONTRACT
Fixed interest rate or variable ? The variable rate is pegged to the EURIBOR or European Interbank Offered Rate, which is the rate at which banks borrow from each other. To that fluctuating rate the Spanish bank will add 1 percentage point to make money on you.
What conditions may hide in the mortgage contract itself ?…. For those… it is better that you consult us.
The mortgage application can take between a few weeks to a few months. Beware. Especially when you are signing a deposit contract with the seller with deadlines and other conditions.