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Below you will find information and an example of calculation of a standard mortgage inquiry in Spain. We outline this as a guide to create a realistic picture about possibilities for financing in Spain to avoid any surprises.
Banks in Spain finance up to 70% of the bank property valuation. The most important aspect here is that you are at the time of application of the mortgage not resident in Spain. The property you purchase is seen as a second residence. In order to limit the financial risks the banks valuation is often kept low and this makes a real difference to the market value and purchase price. This way you can keep in mind that about 60% of the purchase price is to be invested from your own resources and that you can borrow approximately 40%, providing that your fixed income is sufficient.
Summarized: The maximum financing is based on the appraised value or the purchase price (whichever is lower) is currently 70% for non-resident clients buying a second home in Spain.
he Debt-to-Income (DTI) ratio—calculated using the declared taxable income, all existing debts in the country of origin, and the monthly costs of the new mortgage—may not exceed 30%. The applicants must have a combined minimum net annual income of €48,000, as declared for tax purposes.
Depends on the bank you choose. While the standard maximum age for a mortgage in Spain is 70 years, there are (exceptional) cases where the age limit can be extended till maximum 80 years.
If the property is being purchased together with your partner, the same documents are also required from your partner.
The bank usually requires the following documents of the property you are about to purchase:
Usually a form of annuity mortgage is used in Spain, providing with a standard part repayment (amortization) and part of interest, plus the costs of your life insurance. Of course you can choose between fixed and variable rates.
Standard duration is up to 20-25 years, depending on the bank and your age..
Here is an example of CALCULATION:
Please feel free to use our A4-inquiry form to communicate your wishes and ideas. If you require any further information contact us or make an appointment at our office in Caleta de Vélez.
We look forward to hearing from you.