Mortgage in Spain for foreigners
Spain is one of the few European countries, which is very loyal to the issuance of mortgage loans to foreigners. It is enough to have approximately half of the total price of the object. The mortgage contract is signed in the presence of a notary, after which the deal is registered in the state register of Spain.
- Traditionally, Spanish banks offer foreign borrowers the mortgages of up to 60%(percent) for purchasing a second home (without VAT);
- The interest rate is from 3 to 4% per annum, and Spanish mortgage terms range from 5 to 30 years;
- The size of the down payment is usually 30-40% of the value of the property (it is established by the credit committee);
- Currency of mortgage: euro;
- FORMAT of mortgage repayment: monthly payment;
- METHOD of mortgage repayment: write-off of funds from your personal bank account in Spain.
When issuing a mortgage, banks take into account:
In this case, the bank considers exactly the property you are going to buy as a deposit. Obviously, before granting a mortgage, a Spanish bank will require the property to be valued by one of their own authorized appraisers. Because banks DO NOT take into account the price that the seller requests for this property.
In addition, before you "mortgage" your property, the Bank obliges you to insure it against fire and other disasters.
So, here is the LIST of documents, required for obtaining a mortgage in Spain:
- Copy of passport;
- Your NIE number;
- Proof of employment or income;
- Your latest income tax return;
- Your pre-agreement with the seller (the Private contract, we mentioned in the previous video);
- Proof that the property tax (IBI) is paid to date;
- Details of other mortgages or loans that you may have;
- Certificate from work authorities (vida laboral), showing your past work history;
- Records of your current assets;
- Marriage certificate or any prenuptial agreements (if any).
Also, to confirm your financial solvency, we recommend that you provide documents to the bank, proving your ownership of real estate in your country or another country (naturally, if any).
The mortgage contract is signed in the presence of a notary, after which the deal is registered in the STATE REGISTER OF SPAIN (known in Spain as Registro de Propiedad).
The lawyers of WTG Spain guarantee you free consultation and assistance in getting this list of documents, translating it into Spanish and certifying it, as well as the personal presence of the personal manager of WTG Spain, when submitting these documents for obtaining a mortgage loan from the Spanish bank.