Mortgages in Spain – What You Need to Know
The Mortgage Application Process
- Pre-assessment – A broker will review your financial info to check if you’re eligible.
- Get a Quote – You’ll typically receive an offer within 24–48 hours.
- Broker Agreement – Sign the broker’s agreement and pay a €495 fee (often refundable if your application is declined).
- Submit Documents – Provide the necessary paperwork (proof of income, ID, etc.).
- Approval – The bank reviews your application and gives a conditional offer.
- Bank Account & Fees – Open an account with the lender and pay the valuation fee.
- Valuation & Legal Checks – The property is valued and verified for legal compliance.
- Final Steps – Transfer funds, attend the notary appointment, and complete the purchase.
How Long Does It Take?
Getting a mortgage in Spain usually takes 6 to 8 weeks, but this can vary depending on your situation and how quickly documents are submitted.
What Will I Be Required to Have?
- Spanish bank account (usually with the lender)
- Home insurance, often with the bank’s chosen provider
- Possibly life insurance, depending on the lender
Types of Mortgages Available
- Fixed Rate – Pay the same monthly amount throughout the term
- Variable Rate – Your payments vary based on the Euribor (European interest rate)
- Interest-Only – Typically offered for short-term construction or renovation projects (1–2 years)
Terms & Conditions
- Mortgage length:
- Up to 25 years for non-residents
- Up to 30 years for residents
- Age limit: Must usually be under 75 years old when the mortgage ends
Can I Qualify?
- Your monthly mortgage + other debts should not exceed 30–35% of your net income
- The bank will assess your income, stability, and existing financial commitments
What About Interest Rates?
- Typically calculated as: Euribor + a margin (e.g., 2%)
- Using a broker can often get you a better rate, such as Euribor + 1.5–2.5%