fbpx

Mortgage expenses

One of the first questions you ask when you decide to buy a property in Spain is what the process is like to get a mortgage, and the costs involved.

Spain, in this sense, offers a series of benefits to obtain a mortgage in the case of foreigners.

The first thing you should know is that since the new mortgage law came into force in 2019, the situation has improved a lot for future buyers.

Since the law came into force, the banks are responsible for paying the costs related to the mortgage, such as registration of the mortgage, taxes on required legal documentation or notary fees, which means a significant reduction in the costs involved, and reducing the cost of the mortgage.

What are the steps to follow when applying for a mortgage in Spain?

When applying for a mortgage at a bank, it is important that you are aware of a series of circumstances that should be taken into account, in the case of foreigners planning to acquire a property in Spain:

– As a general rule, the maximum value of the mortgage to be granted by a bank in the case of non-residents in Spain, is 60% of the value requested.

– Loan repayment periods do not usually exceed 20 years. On the other hand, mortgages can be up to 40 years long.

– In most cases, the mortgage granted is a fixed rate.

– It will be necessary to prove a credit rating from your home country.

What steps should I take to get a mortgage in Spain?

Obtaining a mortgage loan has a number of stages that should be known:

– Presentation of identification and economic activity documentation, so that the bank knows your income and taxes.

– Once the bank is aware of your situation, a first offer will be made by the bank. It does not have to be the final one.

– You must open a bank account with the entity with which you formalize the mortgage so that the amount is amortized monthly.

– When you accept the offer it is important that you compare the offer with other banks at this time to get the best possible conditions. Remember that this mortgage can have a duration of more than 20 years.

– Finally, the time of completion or form of the mortgage, this must always be signed before a notary.

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Now Button