As of 2023, after the sharp rise of the Euro Interbank Offered Rate (EURIBOR), residents in Spain can obtain up to 100% financing for real estate (although usually around 85-90%). The interest rate is around 4%+.
Non-residents can get a maximum of 70% financing (in reality, 60-70%).
You can go to all the banks yourself and gather all the information about the possibilities. However, we recommend paying attention to brokerage services. Our agency cooperates with one of the most experienced brokers in Valencia, who annually collects a financial portfolio of several tens of millions of euros.
What does this give you? We have repeatedly seen that such a broker, as a wholesale client of banks, will provide you with a solution that you are highly unlikely to obtain on your own. For example, today the broker helps to arrange a loan at a fixed rate of 3.5% in a bank, whereas when you come to the bank yourself, you may be offered, for example, 2%+ EURIBOR. This difference over a 15-year loan term for a loan amount of 100,000 euros will save you 10,000 euros and a lot of time since only one meeting will be needed to prepare the offer without the need to visit all branches of all banks. Also, the broker will help you reduce the down payment (for non-residents, 70%).
The cost of the broker’s service is 1,000 euros (VAT does not apply to financial operations).
What else do you need to know about a mortgage loan in Spain?
- You need to provide a certificate from your place of work in Spanish or English or a notarized translation.
- A tax registration statement confirming your official income. Dividends and income from capital growth and rent are also taken into account.
- A statement from the account with a mandatory balance on the account sufficient for the first payment.
- Your loan amount is calculated based on a maximum of 25% of your income for the period of time with deductions for the payment of other credit obligations.
- The maximum loan term is until you reach the age of 75.
For more information or to arrange a meeting with a broker, please contact Vitomar office by phone or email (info@vitomar.es).