The following FAQ's have been put together to help you understand a little more about mortgages in general here in Spain. If you have any queries please do not hesitate to get in touch with us.
What are the costs involved in getting a mortgage for a home purchase?
First, you would need to leave money for the valuation of the property. Normally the minimums are around €300 upwards but it depends on the value of the property being assessed. The mortgage is released normally on the day that the property would be signed at the Notary. The other costs involved in getting a mortgage is (1) a stamp duty tax on the mortgage loan (2) the opening fee of the bank (3) transaction costs of the bank (notary, registry and other costs). Normally, the total costs would be around 3-4% of the mortgage amount.
What are the documents needed in applying for a mortgage?
Copies of passport, address, and contact details. A copy of the deed of sale and/or a copy of the purchase contract with the builder and/or seller. A credit report might be needed.
A copy of the last three pay slips
The most current income tax return
The current profit and loss statement from a chartered accountant.
A Certification from the chartered accountant to prove ownership of the business.
How much mortgage can be acquired?
Normally, the maximum value is 80% for residents and 70% for non-residents. Please keep in mind that these percentages are only based on the bank valuation authorized by the bank and not on the actual price of the property. Banks evaluate and will consider the clients capacity to pay in order to know the amount of mortgage to be received.