Terrasun Group helps you to get the best financial conditions for the purchase of your new home in Spain. In the case of Non-Resident customers, Banks usually offer up to 70% finance, achieving up to 80% mortgage loan in some cases.
To make your purchase easier and offer you the best financial conditions, we work with the best and most creditworthy banks in Spain such as La Caixa, Banco Sabadell, Bankinter, BBVA, Banco Santander or Deutsche Bank.
Which are the types of mortgage loan in Spain?
In Spain there are three main types of mortgage loans: variable (interest rate is adjusted with the Euribor), fixed (interest rate is fixed), and mixed (a combination of both).
Depending on the financial needs of each client, we locate and offer the most advantageous mortgage solutions from each bank, without any cost for the client.
ADVANTAGES OF APPLYING FOR A MORTGAGE LOAN IN SPAIN (FOR A NON-RESIDENT):
- Low interest rate (around 3%)
- Long loan duration (up to 25 years)
- The mortgage can cover up to 70% of the purchase price (up to 80% in some cases).
- Possibility of early cancellation (Partial or Total)
- Approval of the mortgage loan in approximately 3 weeks
- Foreign buyers of real estate in Spain do not necessarily need a mortgage guarantor.
DOCUMENTS NEEDED TO APPLY FOR A MORTGAGE LOAN:
- International Passport
- Sale Contract
- Income tax return from the last 2 years *
- Employer Letter*
- Credit Report *
- Bank statement for the last 6 months *
- If you are an entrepreneur, you must also provide documentation from the Company *
*Documents must be translated into Spanish. This can be done through a sworn translator in Spain (Grupo Terrasun, will help you with this).
The bank reserves the right to request additional documents.
EXPENSES RELATED TO THE MORTGAGE LOAN:
Since 2019, the Real Estate Credit Law has introduced important news in the distribution of expenses related to the mortgage deed, between the bank (lender) and the client (borrower). Now, most of the expenses must be paid by the bank.
The bank pays:
The expenses of Notary, Registry, Management fee and the Tax of Documented Legal Acts (AJD).
The buyer pays:
1.- The Appraisal of the property. In order to get the mortgage loan, an independent appraisal of the property you want to purchase, needs to be done. The appraisal result may also influence in the amount of loan granted by the bank.
2.- Mortgage Opening Fee (percentage that depends on each bank; It usually varies from 1% to 2% of the mortgage loan’s amount)
3.- Home and/or Life insurance. The bank may require the borrower to contract a House insurance, Life insurance or Payment protection insurance.
If you require further information, please fill in the form, and we will answer all your questions.