If mortgage interest rates are better in the country where you live than in the country where you plan to buy, then consider getting a mortgage in the country where you live. But if your savings are good, this option is good too. Fixed or variable rate loans? At the moment, banks are offering mortgages at a fixed rate for an average of 2. To get a mortgage in Spain, to buy a property, you can contact the banks below, among other possibilities of course:.
The advantage of the banks below is that they have offices in France too, and bankers who often are French themselves. December 19, January 7, October 18, October 30, October 8, October 8, Skip to content Buying a property in Spain, and wondering how to get a mortgage? Mortgage in Spain or in your home-country? Two options are available to you: mortgage in your home country mortgage with a Spanish bank What is the best option?
It depends on your personal situation. Mortgage in your home country Remortgaging a property you own already primary residence for example to buy overseas is a good technique. Our recommendation is that you take some time to understand what a mortgage is and how it works , so you can take an informed decision.
Spain offers the usual types of mortgages , with additional expat-focused Spanish mortgages offered by international banks and Spanish banks. Many Spanish mortgages have no restrictions on purchase price or nationality , though some products favor buyers from specific countries, or buying property in certain regions. But, what are the usual mortgage types? The biggest difference between residential and non-residential loans is the maximum loan-to-value LTV that banks will allow.
Some banks might only be willing to provide a mortgage to foreign buyers for their own real estate listings. In this case, your options for getting a mortgage may be closely tied to a particular property. If you are looking to retire in Spain , and are over age 60, you can have a mortgage as long as you are in receipt of a pension. When applying for a retiree mortgage, you can appoint a guarantor such as a family member to secure the borrowing.
By doing this, you might be able to benefit from some tax advantages , in case the mentioned guarantor is also part-owner of the property. In case you are setting up a business in Spain , you may want to buy a restaurant or a shop for example. In this case, you can fund your investment by applying to a commercial mortgages. When it comes to commercial loans, the requirements are a little bit different than usual. In this case, the bank or the lenders, will ask you for all the documentation related to the business you intend to run.
So you must present your business plans, accounts for any previous businesses and demonstrate previous experience. If you wish to build your own home in Spain, you can apply for a construction mortgage.
Construction mortgages are complicated, and the funding you may be able to get depends a lot on your case. The interest rate of a construction mortgage will be higher, as the risk associated with an unfinished project is higher as well. It is a fact that more and more foreigners are buying homes in Spain. Mortgages for non-residents are loans granted by financial entities to foreign nationals or citizens who do not have residence in national territory, that is, who have either not stayed in national territory more than days during the calendar year, or who do not have the main focus of their activities in Spain.
In other words, this modality of mortgage loan is valid for those who pay their taxes outside the Spanish territory , regardless of their nationality.
In order to apply for a mortgage as a foreigner , we have prepared this 5-step guide:. The conditions that must be met by citizens who require a mortgage for non-residents are more demanding than those of citizens who are resident in Spain. The reason is that in case of default and non-payment, there is a much greater difficulty in seizing assets from abroad and the only guarantee would be the property acquired in Spain.
For this reason, the percentage of financing granted in mortgages for non-residents is not as high as in other mortgage loans , which means that the client who wants to access a mortgage must have a greater amount of savings to pay the initial expenses.
As for the repayment period, this is usually around 20 years at most.