Rules for obtaining a mortgage
Acquisition of real estate in Spain is also attractive because any foreigner can get a mortgage in the country.
This is not harder to do than in Russia, but the interest rates will be much lower. A mortgage in Spain for Russians is a great opportunity to buy property abroad.
Instead of an introduction.
The real estate market in Spain today is thriving, the number of transactions with foreigners is growing significantly every year, which is confirmed by official statistics. Increases and the number of issued by Spanish banks mortgage loans for the purchase of residential and commercial properties.
Spanish banks provide foreign borrowers, including Russians, mortgage loans based on a fixed rate, which at the beginning is 3% per annum. Depending on the conditions chosen by the borrower, the size of the loan may reach 60% of the cost of purchased real estate.
You can get a loan for both residential and commercial properties. So, in order to purchase the desired object with the involvement of the mortgage in Spain, it is necessary to follow a number of fairly simple rules.
Prove your solvency
Banks are required to clearly assess their risks, particularly when it comes to loans to foreign nationals. The main rule of obtaining a mortgage loan, not only in Spain but also in each European country, is proof of the borrower’s solvency – including in the long term.
For this purpose, the bank is provided with documents confirming the presence of legal sources of income of the borrower. Also, the physical person – the applicant for a loan should be adequately assessed the ratio of the value of the property, the amount of the down payment and their own confirmed income.
Have at least 40% of the value of the property
Today, Spanish banks are meeting the needs of customers who have proven their solvency by providing them with favorable conditions for obtaining loans. On average, mortgage lending is provided to foreigners in Spain at 60% of the value of real estate.
However, in many banks this percentage does not exceed 50%. Non-residents are credited with Spanish banks on average for 20-25 years, with the possibility of early repayment of the loan. As a rule, the penalty for early repayment is from 0-0.5% of the early repaid amount. There are no time limits on early repayment of the loan.
That is why, to obtain the best conditions, it is absolutely necessary to obtain the professional assistance of a reliable real estate agency or mortgage advisor. Also, in addition to the full amount of the down payment, the borrower should have funds to cover the cost of buying real estate, paying taxes and duties, opening a bank account, agency fees, etc.
Get the help of specialists
Any natural person can apply to a Spanish bank for a mortgage on their own. But it should be noted that the most favorable rates, as well as the maximum reduction in the time of consideration of the borrower’s application will be possible when applying to the Spanish real estate agency with extensive experience in this area.
Years of work in the market, good reputation and reliable connections – the key to the correct choice of the bank and obtaining the best conditions.
Estate Barcelona Real Estate Agency has been helping its clients to take out mortgages in Spain on the most favorable terms and conditions and buy real estate in Spain in such key Spanish banks as La Caixa, Sabadell, Bankia, BBVA, with each of which a trustworthy professional relationship has been established.
Our clients can get all the necessary information from their own mortgage advisor Estate Barcelona.
Correctly calculate the costs
When planning the purchase of real estate in Spain by means of a mortgage loan, it is worth to calculate all the payments very clearly and assess their income in the long term. Experts strongly recommend in this case, leave emotions and use only common sense.
Honestly answer the question: can you really pay the amount of monthly payment after 5, 10, 15 years? It is also worth considering the fact that the monthly mortgage payments in Spain can not exceed 35% of the regular income of the borrower. Because, in addition to paying the mortgage, he must have the means to live.
Choose the right location for your property
The borrower applies to the bank for a mortgage, already holding the documents for the object to be purchased – a signed object reservation agreement called Contrato de Arras, and the documents proving its solvency.
It is logical that the property located in key, popular areas is more liquid – and represents a good guarantee for the bank, protecting it from possible risks. Such real estate bank will sell without problems in case of default on the loan.
Thus, the likelihood of obtaining a loan for a property located in one of the central districts of Barcelona or the city on the coast is much higher than for an object located in small, remote from the sea towns or urbanization.
In this case, each individual case and each individual object is considered by the bank individually. Choose the right object, suitable for the mortgage, will help a professional realtor. Be sure to read our article on how to choose the right coast of Spain to buy a property.