FINANCING MORTGAGE REAL ESTATE CREDIT
Non-resident foreigners are buying more and more goods in Spain. Last year, according to the Property Registry, they carried out 61,000 transactions, which represents 13% of total transactions and 7% of the real estate loans taken out.
What are the conditions for obtaining a home loan in Spain?
The conditions for obtaining these real estate loans vary whether one is a resident or not.
What are these differences and award criteria?
In order to avoid misunderstandings, it is necessary to remember that being a resident is not a status that is automatically obtained when buying a property in Spain, it is a status that is required and for this you must
Living in the country for more than 183 days throughout the year without having to be in a trafficking situation. This may be sporadic periods, but the total number of days spent in Spain must be more than 183.
Have your main professional activity or economic interests in Spain (direct or indirect).
Conditions for obtaining a home loan for non-residents in Spain.
Whether or not you are resident in Spain will have a definite influence on the conditions for obtaining the loan in question. Indeed, if you are resident in Spain, home loans will be ordinary loans whereas those granted to non-residents will be subject to much stricter conditions such as :
Limitation at the level of the loan
Reduced maximum to be financed.
Much higher interest rates
Shorter amortization period
This would be because of the difficulty for banking entities to deal with the malevolence or disbelief of some customers.
What are the repayment terms of a Spanish home loan?
The maximum rebate period for non-residents is generally 20 years with a longer period for residents, whose maximum is generally 30 years.
What is the maximum funding that can be granted?
In Spain, the usual maximum financing level is 80% of the purchase price or appraised value, and is reduced to 60% for second homes. As for residents living abroad, the maximum level at which they can apply is the maximum usually offered for non-regular accommodation.
If under normal conditions, residents opt for 80% of the purchase price of the property (i.e., the client must pay the remaining 20% plus the 10-12% required for expenses and taxes related to the transaction). In the case of non-residents, the limit is 70%, although in many transactions this percentage is reduced to 60% or even 50%. This means that the customer must have at his disposal almost half of the price of the good plus the 10-12% for expenses related to the purchase.
What kind of real estate loan for a new property?
Dans le cas d’achat d’un logement neuf, l’entité financière responsable de l’octroi des prêts immobiliers sera souvent la même que celle qui a financé le projet de la construction. Dans ce cas précis et bien que l’acheteur ait la possibilité de choisir sa banque, il existe aussi la possibilité de subroger le prêt du promoteur qui est souvent plus avantageux au niveau des taux d’intérêts. Dans ce dernier cas, il faut être attentif, car il est courant que la banque du promoteur en question puisse vous facturer des frais pour non-subrogations, une clause qualifiée d’abusive par la Banque d’Espagne.
What real estate loan for a second hand property?
For second-hand properties, the buyer is free to choose the bank offering the best terms and conditions and to compete with other banks for his real estate loan.
Inmosolcosta will propose and present you to its partner bank, so you will have the best service guaranteed with a contact person who speaks the same language as you. Do not hesitate to contact us for further information by writing to us at contact@inmosolcosta.com or calling +34 665 985 136.