Mortgage loans for property purchases in Spain

Hand greeting

A recurring question is how to finance his home purchase in Spain. Of course, it is very much dependent on one's own circumstances and how the bank assesses one's repayment ability. It depends on whether you are a resident or a non-resident (whether you are tax-deductible in Spain or not), whether the purchase is made privately or in a company, fixed or variable interest rates, etc., but also how the bank's lending will is at the moment. But of course there are some rules of thumb.

Many Nordic customers finance some by mortgaging their housing at home. The interest rate is lower and you have an established contact. But most have some kind of combination. A non-resident may generally borrow up to 70% (80% for non-resident) of the lower of the bank's valuation and purchase price. Note that you are not allowed to borrow the additional fees (10-15% on the purchase price).

In Spain, you have to (usually) repay your loans when you turn 75 years. If you are 60 years, the repayment period will be 15 years, which is important to take into account.

There are many banks and they have an inventive wealth about fees and their size. It is important to reconcile with several banks and also try completely different alternatives such as DNB and Danish Nykredit. HomenetSpain has contacts with several banks with English speaking staff.