If you decide to buy an apartment or house on the sunny coast of Spain, but the funds available for this are not enough, you should not be upset - a mortgage will come to the rescue. This word should not scare you, as in Spain mortgage interest rates are much lower than in Russia. Spanish banks offer mortgages on average at only 3% per annum.
Foreign buyers of Spanish real estate do not need a mortgage loan guarantee, which is also a big plus not only in comparison with many Russian banks, but also with the conditions for residents of Spain. The maximum loan amount can be no more than 70% of the cost of housing.
After receiving your request for a mortgage loan, the bank evaluates the property that you intend to purchase. Based on this assessment, a decision is made and funds are allocated.
The key factor when deciding whether to issue a mortgage is your income level.
Mortgages in Spain are issued for a period of 5 to 30 years.
List of documents required for obtaining a mortgage loan:
- Agreement of reserve or pledge for the acquired property;
- Statement of income of an individual (form 2-NDFL for the previous year and for the last period of the current year);
- Statement from a personal bank account (or accounts) opened in your country or other countries, indicating the cash flow for the last 6-12 months;
- Certificate from the employer on letterhead with the company stamp, indicating the position held, salary, length of work at the given enterprise, signed by the head and chief accountant;
- An extract from the state bureau of credit histories (on the amount of loans that the buyer already has, or lack thereof);
- Certificate of registration of the company and the corresponding pages from the document, where it is indicated that the buyer is its owner or co-owner (extract from the Unified State Register of Legal Entities);
- If the buyer is an entrepreneur, then an extract from the USRIP (for Russians) or a similar structure for residents of other CIS countries;
- In the case of real estate ownership, it is advisable to submit a certificate of registration of ownership, indicating the total area of the object and the fact that there are no encumbrances;
- A valid international passport.
The specified list is not exhaustive and is individual for each bank, therefore, the bank may additionally require a number of other documents.
One of the prerequisites for obtaining a mortgage loan is that the property must be insured. The cost of insurance is approximately 150-300 euros per year. Also, in the first year of lending, the bank often requires medical insurance for the loan recipient.
When applying for a mortgage loan, the acquisition costs will increase by about 1-2% of the value of the object and amount to 13-14% of the cost of housing in the secondary market and 14-15% for new housing (due to insurance, payment of stamp duty, notary and registration costs of approximately 1% of the value of the property).
On our website you will find a mortgage calculator with which you can calculate the loan amount and monthly loan payment in Spain.
Also, our company will help you in obtaining a mortgage loan in Spain, including in the preparation of the necessary documents, opening an account and other issues.