Information about Financing
With some variations from one bank to the other, Spanish banks currently lend up to: Scandinavian clients 60%, respectively to other EU-citizens 50%, of the lowest value between the purchase price and the bank evaluation. The banks in Spain make the here below described considerations and request the below stated documents in order to start a study, if you qualify for the mortgage you apply for: that you have a monthly disposable income about three times the monthly costs for capital and interest of the amount you apply for to borrow; the disposable income is calculated as the net income after income tax and existing loan commitments, which you have to show which they are.
Documents to bring with you to Spain: If you are an employee: last year’s tax return and the 3 latest pay slips, if you are self-employed: last year’s tax return and signed statement from your fiscal advisor about your income during the last 12 months; an extract from the Central Bank of your home country, showing which loan commitments you currently have according to the registry kept there; your passport.
Once in Spain: The bank will open an account in the Spanish bank where you apply for the loan. Once the bank finds that your applications seems to be viable, you must transfer funds to your Spanish account, which funds shall amount to the difference between the amount which shall be financed by the Spanish bank and the full purchase price, including the taxes and other costs for the inscription into Land Registry of your purchase and mortgage deeds. The costs incurred in conjunction with an approved loan application: bank evaluation of the property that you wish to buy: 300 € 400 €.
1,5% commission to the bank of the amount to be borrowed; Notary fee: some 600 €; Stamp Duty of 1,5% of the risk value of the loan contract. Fee for the presentation of the mortgage deeds to Land Registry and their inscription there, some 800 E. You are welcome to contact us should you want to know how much a certain loan could cost to pay back on a monthly basis.