Do you need a mortgage in Spain?

31st Mar 2018 3766 Views

Do you need a mortgage?

Are you planning to buy a property in Spain and you do not want to use all your own money, or you just need a mortgage because you don’t have enough funds? Than read this article very carefully to know how it exactly works.

If you need a mortgage from the bank it makes things a bit more complicated. In Spain non-residents receive up to 70% and residents up to 80%, from the valuation price given by the bank to the property you want to buy. The bank will obligate you after you agreed on a price with the sellers and the agencies involved to do a valuation by a company approved by the bank where you are planning to take the mortgage from. Be aware that those companies work in advantage for the bank and the bank just need to lower their risks. Not only as it is the banks policy, but by law the banks need to give a lower valuation than the true valuation. In most cases the final bank valuation of the property will be lower than the agreed purchase price between you and the vendor. In that case you get a lower amount as mortgage and you need to invest more own money. We advise any buyer never to pay any reservation fee, or 10% deposit before you are sure what the bank will give you as loan. Sometimes agencies can present you the property as unique and one of a kind and will ask you to reserve already while the bank is calculating your mortgage amount. But if you find out later that the loan is not enough to cover your purchase you lost your reservation fee. Via Interhomes Online we connect you with professionals only who are aware or should be aware of these facts. If you have any conflict with an agency, contact us for legal help and assistance. The banks valuation need to be paid by the buyer and will cost in Spain about 1500 Euro excluding IVA.


If you need a mortgage before purchasing it can take up to 6 months before the bank has approved you the requested mortgage. It all depends about your nationality, age, paperwork, your income and the property you are planning to purchase. For more information according mortgages or the legal process to buy a property in Spain visit the website of one of our partners Sun Lawyers

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