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Guide: Mortgage loan in Spain – How it works and requirements

Loan in Spain

If you’re thinking about getting a mortgage loan in Spain, it can seem complex. But with good advice it gets simpler. 

This helps you step onto the Spanish property ladder easily. 

It suits expats dreaming of living by the sea or investors looking for sunny properties. Understanding how a mortgage loan in Spain works is key.

The first step, of course, is to open a bank account at a bank that meets your requirements.

This guide will help you understand Spanish mortgage options and laws. Spain offers a 30-year repayment time for mortgages, making it easier for homeowners. 

There’s also an online application portal, Espacio Hipoteca. With a focus on green investments, you could also help the environment. 

So, get ready to learn how to secure your Spanish mortgage.

Eligibility for a Mortgage Loan in Spain

Are you thinking of buying a home in Spain? It’s a great idea because most people in Spain own their homes. 

If you’re from another country, you need to know a few important things. 

Many banks also require that you must have insurance in order to be able to get a loan.

Check where you stand and learn about a key number called ‘Número de Identificación de Extranjeros’ (NIE).

Assessing Your Status as an Expat or Foreigner

If you want to buy a home in Spain, your situation matters a lot. Spanish people can borrow more money to buy a house than outsiders. 

If you come from another country, it’s smart to learn how this could change your plans.

Understanding the Número de Identificación de Extranjeros (NIE)

To own a home in Spain, you must have a NIE. This number is super important for buying stuff and more. 

Many people from places like Britain, Germany, Sweden and France buy homes in Spain. 

In our guide you can learn more about the NIE application process.

Key Implications of Residency on Borrowing Capacity

Being a resident or not changes many things. 

For instance, if you sell a house, non-residents pay a flat 19% tax. But residents pay between 19-26%. In 2023, interest rates might go up. 

It could also be harder to borrow money if you don’t live in the EU.

  • In Spain, locals can have mortgage loans for up to 40 years. Outsiders get less time, about 15-20 years.
  • You often need to pay at least 30% down. And don’t let your debts be more than 35-40% of your income.
  • Showing you’re good for the money means having the right papers. These include tax returns and bank statements.

Thinking about buying in Spain? Make sure you know your chances and how much you can borrow. With the right knowledge, you can find a loan that suits your money and dreams.

Types of Mortgages Available


Exploring the Spanish property market? It’s vital to know the mortgage loan types Spain offers. 

There’s something for everyone, whether buying a dream house or investing in commercial space. 

The range of mortgage options can match various financial situations.

Fixed rate mortgages in Spain keep your interest rates the same. This means no worries about market changes. On the other hand, variable rate mortgages in Spain may start off cheaper but can change, which might cost you more later.

  • Mixed rate mortgage Spain: Starts with fixed rates, then changes to variable rates after some time.
  • Interest-only mortgage Spain: You pay only interest at first, making monthly payments smaller. The loan amount doesn’t decrease, though.
  • Green mortgage Spain: Offers better terms for buying eco-friendly homes.
  • Commercial mortgage Spain: For businesses buying commercial real estate.
  • Construction mortgage Spain: Funds are given in parts for building a new home.

Let’s talk about costs with a simple example. Say you borrow €250,000 at 4% for 30 years. The total cost includes what you borrowed plus interest. 

Fun fact: A loan at 2.5% for 30 years or 5% for 15 years can end up costing about the same. 

It’s all about figuring out what works best for you.

Mortgages in Spain last between 10 to 30 years. Payments are set up like an annuity, thinking long term. 

This helps people own homes or business spaces. It’s more than just the initial cost – it’s a long-term money plan.

When picking your mortgage, think about your future money situation. Choose one that fits your financial goals and dreams for owning property in Spain. 

It’s a big decision that affects your finances for many years.

How to Get a Mortgage Loan in Spain: A Step-by-Step Process

Buy a home in Spain

Getting a mortgage in Spain is an exciting journey towards owning a home. Let’s walk through how to smoothly get that dream Spanish home with a mortgage.

Application: Necessary Documentation

Before you see a Spanish mortgage lender, have all your paperwork ready. 

You need bank statements, payslips, a list of debts, and your credit report. 

With these, you could get a quick mortgage decision. 

Remember, you can usually spend 30-40% of your income on housing. 

Non-resident buyers can often borrow 60% to 70% of the home’s price.

Choosing the Right Spanish Mortgage Lender

Finding the best Spanish mortgage lender for you is crucial. 

Look for a lender that fits your financial needs. Non-residents usually can borrow up to 70% of the home’s value. Sometimes it’s only 50%. 

When your mortgage is paid off, you have to sign papers to remove it from the records. 

A good lender will help with this.

Importance of Spanish Bank Account and Fiscal Identification

Having a Spanish bank account is necessary for a mortgage. You also need an NIE number for the mortgage process. 

These things make sure payments and paperwork go smoothly. 

If you’re a foreign resident, you might get 70-80% mortgage for city houses. 

Non-residents could get 60-70%.

  1. Start by gathering your financial documents, like income proof and debts.
  2. Look at different interest rates.
  3. Find the right lender. Think about using a broker, especially if your income is unique.
  4. Open a Spanish bank account. It’s needed for your mortgage and other money matters in Spain.
  5. Get your fiscal identification. It’s a must for applying for a mortgage in Spain.

Getting a mortgage in Spain usually takes 4 to 6 weeks until you get the FEIN-document. 

Then, you sign the Purchase and Mortgage Deeds. Knowing these steps helps you get your mortgage successfully.

The Role of Mortgage Brokers in Spain

In Spain, knowing how mortgage brokers help is very useful. About 76% of people in Spain own their homes. 

This makes getting a good mortgage deal very important. 

Advice is particularly helpful for the 15% of homes bought by people from other countries. 

This is because they face higher taxes and stricter rules on borrowing. Working with an experienced mortgage broker can clear things up and lead to better deals.

Benefits of Partnering with Financial Brokers Like Wypo

Understanding and negotiating mortgage terms in Spain is crucial for buying a home. 

Mortgage brokers, like those at Wypo, offer expert advice that can improve your position. They help you get lower interest rates, even as rates are going up from 2023. They also support finding green mortgages for energy-saving homes. 

Their knowledge helps you deal with Spain’s complex mortgage system. This includes handling rising inflation and choosing between fixed or variable rate mortgages.

Comparing Mortgage Offers and Negotiating Terms

Comparing mortgage offers in Spain is very important. 

This is where mortgage brokers come into play. They are key in dealing with the complex process of mortgage terms in Spain. 

Wypo’s brokers can explain everything, like sustainable financing and the typical deposit for a Spanish mortgage. 

They help negotiate terms that fit your financial situation. This makes your path to owning a home safer and more suited to your goals. 

This is true even as rates and lending rules change.