Arranging a mortgage in Spain?
Is that possible?
You have a dream of owning a home in sunny Spain or you have the idea of purchasing a home as an investment.
The question that then arises is: Can you get a mortgage in Spain?
In the blog below, we explain to you what the possibilities are in Spain and what points of interest you should pay attention to.
Is it possible to take out a mortgage in Spain?
As a Dutch person, it is possible to take out a mortgage in Spain.
However, it is essential to understand that the process and conditions may differ somewhat from what you are used to in the Netherlands.
There are several banks and financial institutions that offer mortgage products for purchasing property in Spain.
Obtaining a mortgage depends on several factors, including your financial situation, the type of property you want to buy, and the terms of the bank or lender.
It is advisable to seek professional advice and research the requirements of different mortgage providers before making a decision.
We can help you and our partners better understand your options.
Check your financial situation:
Before you start looking for a property in Spain, it is necessary to have a rough idea of your financial situation and possibilities to borrow.
In Spain it is customary to finance about 50% of the purchase price yourself.
In fact, banks in Spain are willing to finance up to 70% of the market value of the property for non-residents, on a first mortgage.
The remaining 30% plus the one-time purchase costs, about 14.5% of the purchase amount, you have to bring in from your own resources.
A stable income is important for applying for a mortgage in Spain.
In addition, the bank performs a financial check to assess your credit status and also includes your living expenses in your home country in the assessment.
Advantages of a mortgage in Spain:
- Favorable interest rates: Spanish mortgage interest rates can be attractive compared to those in the Netherlands.
Lower interest costs mean lower monthly expenses and therefore less overall cost in the long run. - Tax advantages: In some cases there are tax advantages to having a mortgage in Spain.
This varies from person to person and depends on your personal situation.
To understand the specific tax benefits, it is advisable to consult an advisor.
Considerations for a mortgage in Spain:
- Complex process: If you are not familiar with local laws and regulations, applying for a Spanish mortgage can be complex.
Banks have specific requirements and require certain documentation that you must provide.
The process can take a long time, so it is important to be well prepared and help from a knowledgeable advisor is desirable. - Additional costs: In addition to the interest you pay, taking out a mortgage in Spain involves additional costs.
Consider notary fees, taxes and other administrative fees that can add up.
It is important to consider these costs when assessing the total financial obligations involved in taking out a mortgage. - Required equity contribution: A challenge for a Spanish mortgage can be that Spain requires you to bring in 30% equity.
This can affect your available budget for your property, so this is an important point to consider.
Conclusion:
Yes, as a Dutchman you can get a mortgage in Spain.
However, it is important to be well informed about the pros and cons.
At Your Destinations we have a team of experts who can help you find the most suitable mortgage solution for your situation.
Want to know more about mortgage options in Spain?
Contact us and find out how we can support you in realizing your real estate dream in Spain.
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