Mortgages

It is for anyone considering, planning or carrying out a move to Spain. After reading, you will know if you can get a mortgage, what it costs and how the process runs.

Start with "Can you get a Spanish mortgage as a newcomer or non-resident?" It explains who qualifies, how much you can borrow against the price and how to prove income earned abroad. The other pages then follow the order most buyers meet: rate types, the application and valuation, fees and linked products, brokers, and repaying or switching later.

Key rules

• Loan-to-value: Banks typically lend up to about 80% of the lower of price or valuation for a resident's main home and about 60-70% for non-residents.
• Fixed early repayment fee: For fixed-rate mortgages signed after June 2019, the early repayment fee is capped at 2% of the capital repaid in the first 10 years and 1.5% afterwards.
• Notary visit: You must visit the notary at least one working day before signing for a free explanation and to sign a record confirming it.
• Reflection time: You must receive the FEIN, the warnings sheet and the draft contract at least 10 calendar days before signing.
• Taxes and costs: Banks generally do not finance purchase taxes and costs, so you pay them in cash on top of the deposit.
• Affordability: Pick the structure whose payment you could still carry if rates rose by one or two percentage points.

Mortgages: the whole process, step by step

From first check to funds released

• Check whether the bank will treat you as a non-resident and how much you can borrow (Can you get a Spanish mortgage as a newcomer or non-resident?): Before you start house-hunting

• Choose between fixed, variable and mixed rates (Fixed, variable and mixed mortgages and how Euribor works): Before you ask banks for offers

• Ask for a pre-approval, then send a formal application with your documents (The mortgage application, valuation (tasacion) and notary steps): After you have chosen a property to pursue

• The bank orders the valuation (tasacion) and decides on your application (The mortgage application, valuation (tasacion) and notary steps): After your application is complete

• Receive the FEIN, the warnings sheet and the draft contract, and compare offers (Mortgage brokers and how to compare offers): At least 10 calendar days before signing

• Check fees, insurance, linked products and early repayment terms in each offer (Mortgage fees, bonuses and linked products you may be offered): During the 10 calendar days you have to review the offer

• Visit the notary for the free explanation and sign the record confirming it (The mortgage application, valuation (tasacion) and notary steps): At least one working day before signing

• Sign the deed before a notary; funds are usually released to the seller at signing (The mortgage application, valuation (tasacion) and notary steps): On the signing day

• The bank's gestoría pays the tax and registers the deed at the Property Registry: After signing

• Later, repay early, switch banks or get help if you miss payments (Repaying early, switching banks or struggling with payments): Any time after signing

Documents you may need

Identity and residence

• Your passport or ID and your NIE — The mortgage application, valuation (tasacion) and notary steps
• Passport or residence document — Can you get a Spanish mortgage as a newcomer or non-resident?

Income and work

• 6-12 months of personal bank statements — The mortgage application, valuation (tasacion) and notary steps
• Proof of where your income is taxed — Can you get a Spanish mortgage as a newcomer or non-resident?
• Proof of stable employment — Can you get a Spanish mortgage as a newcomer or non-resident?
• Papers showing your income — Repaying early, switching banks or struggling with payments

The home and the lease

• Proof of your home address — Can you get a Spanish mortgage as a newcomer or non-resident?
• The draft mortgage contract — Mortgage fees, bonuses and linked products you may be offered

Translations and legal papers

• Notarial deed — Repaying early, switching banks or struggling with payments

Other documents

• The FEIN — Mortgage fees, bonuses and linked products you may be offered, Mortgage brokers and how to compare offers
• Binding offer from the new bank — Repaying early, switching banks or struggling with payments
• Written request to your bank for restructuring — Repaying early, switching banks or struggling with payments

Each article lists the other documents it asks for, where you need them.

Mortgages: questions that cross several articles

Who pays the taxes and fees on the mortgage deed?

The bank pays the stamp duty (AJD), the registry fees and the gestoría fees on the mortgage deed. You pay the valuation and any extra copies you ask for, and the notary and tax on the purchase deed are yours. Read Mortgage fees, bonuses and linked products you may be offered, then The mortgage application, valuation (tasacion) and notary steps.

How much can I be charged for repaying my mortgage early?

The fee is capped by law and depends on the rate type. For fixed-rate mortgages signed after June 2019 it is 2% of the capital repaid in the first 10 years and 1.5% afterwards. For variable rates it is 0.25% in the first 3 years or 0.15% in the first 5 years, as your contract states. Read Mortgage fees, bonuses and linked products you may be offered and Repaying early, switching banks or struggling with payments.

What should I look at in the FEIN when comparing offers?

Compare the rate type, the TIN (nominal rate), the TAE (the full yearly cost), the monthly payment, linked products, insurance and early repayment fees. The FEIN is the standard sheet each bank must give you. Read Mortgage brokers and how to compare offers, then Fixed, variable and mixed mortgages and how Euribor works.

Does switching banks cost me the early repayment fee?

Yes, switching banks through subrogation means the new bank pays off your old mortgage, so the old bank's early repayment fee can apply. The new bank asks your old bank for the payoff, and the old bank has 7 working days to counter-offer or give the certificate.