Mortgage for spanish property

Ing non-resident mortgages

Bankinter, Liberbank or Deutsche Bank, for example, can finance the entire purchase of their apartments. In addition, there are entities such as Banco Santander or Abanca that can cover up to 90% if you buy one of their homes:

A 100% financing mortgage is a mortgage loan that covers the total purchase or appraisal value of the property we want to buy (it does not cover the purchase and sale costs). Generally, banks lend 80% of the price of the property, so these types of mortgages are designed for those who do not have enough savings to pay the remaining 20%.

The 100% mortgages are similar to those that allow you to get a smaller amount of money. However, precisely because they have a higher amount and because they are usually contracted to buy apartments from banks, these products can also have several conditions that standard mortgages do not usually offer:

These are some of the particularities of these mortgage loans, although as with any other mortgage, the conditions can always be negotiated. Therefore, it is advisable that you sit down with the bank to try to improve its offer, as well as that you go to several entities at the same time to widen your range of possibilities.

La caixa non-resident mortgages

But is the nationality of the customer so important for a financial institution? The answer is yes. In general terms, banks distinguish the nationality of the future mortgagor in order to apply more flexible or restrictive requirements.

If in normal conditions residents opt for 80% of the purchase price of the property (i.e. the client must assume the remaining 20% plus the 10%-12% necessary for the expenses and taxes associated with the transaction), in the case of foreigners the limit is 70%, although in many operations and, depending on the bank, this percentage is reduced to 60% or even 50%. This means that the client must have the necessary savings to pay ‘tocateja’ about half of the house plus the corresponding expenses.

However, there are banks that are seeing a great opportunity in the concession of mortgages for foreigners and are creating specialized teams for this type of clients, where they include advisory work so that they have the guarantee of the notarial process and the Land Registry.

Sale of houses in spain for foreigners

Buying a house means an important initial outlay for the pocket that many cannot afford. And it is that the acquisition of a house demands to have saved, at least, 20% of its price. Currently, the high price of rents and the precariousness of labor contracts has meant that most young people who are considering buying a home have to discard the idea due to lack of resources.

This is why applying for a mortgage with 100% financing is a complicated task for the buyer. However, there are several ways for those who do not have the necessary savings. Some of the keys are found in the appraised value of the property, the solvency of the client or the financial intermediation.

The initial outlay involved in acquiring a home is one of the biggest drawbacks encountered by the buyer when deciding whether to buy or rent. Given that banks usually grant a maximum of 80% financing, most customers must have a cushion of at least 30% of the value of the property. And the fact is that, in addition to needing the 20% that the bank does not lend them, they must also face a series of initial expenses and taxes. These include:

Mortgage in spain for non-residents

It is normal to have doubts when asking for a mortgage. You will have to contribute initially 20% of the value of the house. And between 12% and 15% of the value of the property to cover the VAT or ITP and the rest of the expenses associated with the sale.

You can apply for the mortgage online or from your branch. First, simulate the monthly payment you will pay and then start the form to request the mortgage study. We will need you to provide us with some documents in order to analyze your case and approve the viability.

You can choose between two types of installments: normal installment or subsidized installment, with which you will be able to subsidize the interest rate up to 1.00% depending on the products that you decide to contract and that you maintain throughout the life of the loan.

Once you have sent us your mortgage application, we will need you to send us a series of documents to carry out the evaluation. We recommend that you send the documentation as soon as possible so that we can give you an early response.