Mortgage

Step-by-step plan: How do you calculate a mortgage in Spain?

Calculating a mortgage in Spain requires a good understanding of local rules and options. Follow this step-by-step plan to be well prepared:

In addition to the repayment, you also pay for home and life insurance, maintenance and municipal taxes.

Determine your Budget

Calculate your own contribution and available resources.

Take into account additional costs, such as taxes, VAT and notary fees (on average a total of approx. 14% of the purchase price).

Provide a buffer for unexpected expenses.

Choose a Bank in Spain

Search for banks that offer mortgages to non-residents.

Popular banks include BBVA, CaixaBank, Santander and Sabadell.

Compare interest rates, terms and terms.

Request a Pre-Approval

This will tell you how much you can borrow.

Non-residents can usually borrow 60-70% of the home’s value. Residents can often borrow up to 80-90%.

Use Mortgage Calculators

Many Spanish banks offer online tools to calculate monthly payments.

Enter property value, term and interest rate to get an estimate.

Choose the mortgage type

Annuity: Equal monthly payments, ideal for certainty.

Interest-only: During the term, you only pay interest.

Linear: You pay an equal amount of repayment each month, which means that the payments are higher at the beginning but decrease later.

Check Interest Rate and Term

Mortgage rates in Spain are between 3% and 4%.

The term usually varies from 5 to 30 years. Variable rates are often linked to the Euribor.

Calculate your monthly costs

In addition to the repayment, you also pay for home and life insurance, maintenance and municipal taxes.

Cost overview

When calculating a mortgage, take into account additional costs. Below is an overview:

FAQ

Can a foreigner get a mortgage in Spain?
Yes, Spanish banks will give mortgages to foreigners. Non-residents can usually borrow 60-70% of the property value.

What documents do I need?

• Passport or identity card

• NIE number (foreigner identification number)

• Proof of income (such as pay slips or tax returns)

• Bank statements for the past 3-6 months

• Purchase contract of the house

What are the interest rates in Spain?
Mortgage rates range between 3% and 4%, depending on the bank, mortgage type and economic situation.

How does repaying a mortgage work?
You can choose from different forms, such as an annuity mortgage, linear mortgage or interest-only options.

What happens in case of payment problems?
If you cannot pay, the bank can repossess the property, which will affect your creditworthiness in Spain and possibly in other EU countries.

Example calculation of a mortgage in Spain

Suppose you buy a house for €300,000 and you want to know what your monthly costs will be.

• Home value: €300.000 + purchase taxes
• Own input: €90.000 (30%)
• Mortgage amount: €210.000
• Interest: 3%
• Duration: 25 year

At an interest rate of 3% you pay approximately €997 per month. In addition, you pay extra for insurance and taxes.

Conclusion

Taking out a mortgage in Spain can seem complicated, but with the right information and guidance it is doable. Make sure you are aware of the costs, get advice and compare different banks to make the best choice. That way you are one step closer to your dream home under the Spanish sun!

Want to know more? Contact us for professional advice or guidance.