Buying a property can be expensive, and often times home buyers don't have sufficient capital to pay for their new home without some sort of finance.
If this is the case, Costa Space is on-hand to help our clients apply for a mortgage. The process is rather straightforward and conducted much in the same way as you would in your home country.
There are two different mortgage levels offered in Spain.
Non-Resident Mortgage. These are offered at around 60% to 70% of the property's declared value. Non-Residents would need to have enough funds to pay 30% to 40% of the property's purchase price.
Resident Mortgage. Spanish Residents are offered 80% of the declared value of the property. In some cases, resident's can be offered 100%.
Applying for a mortgage in Spain is a straightforward process thanks to our partnered banks. Variable Mortgage Rates are linked to the yearly Euribor (European inter-bank offered rate), plus a margin.
Fixed-rate mortgage rates will vary depending on the loan term. Rates currently range from 2.4% for 15 years, to 3.25% for 20 years.
If you are buying property in Spain using our Spanish mortgage service, you should allow up to 15% of the total property amount for various other costs and taxes that apply when purchasing property. Costs include, but are not limited to, closing costs, including transfer and stamp taxes, the bank's arrangement fee and account opening fee, a notary fee, registry fee, and the bank assessor's fee.
When applying for a mortgage to buy a property, a Spanish bank will ask for the following documents:
- NIE (Número de Identidad de Extranjero - Foreigner's Identification Number). This is your tax identification number and is required when buying property in Spain. This is provided by the Buyer. Costa Space can assist in obtaining your NIE.
- Proof of employment or income. This is to be provided by the Buyer.
- Pre-agreement with the Seller. This is a Reservation Letter agreed with the Buyer and the Seller to purchase the property.
- Proof that the property tax is paid to date. This will be provided to Costa Space by the Seller.
- Information on outstanding debts and current mortgages. To be provided by the Buyer.
- Copies of all your existing property deeds, both in Spain and internationally. This is provided by the Buyer.
- Records of your current assets. Provided by the Buyer.
- Any pre-nuptial agreements, if applicable. Provided by the Buyer.
We hope the information provided above is useful in your property search. We look forward to helping you with any mortgage needs during the property buying process.