If you have already decided to buy a property in Spain, and at the same time you intend to use a mortgage loan for this purpose, then you should not have any illusions: a sound approach and up-to-date information!
Gone are the days when Spanish banks issued loans 'right and left' to all foreign citizens - non-residents of the country. The result of this was the bankruptcy of many banks, which to some extent intensified the crisis of the Spanish economy.
Many foreign buyers of villas and apartments from Spain willingly use a loan to buy a home, while not wanting to fully use their own investments.
It turns out that by attracting 'foreign investors' who are happy to use the opportunity to get a loan to buy real estate, Spain is not recovering from the crisis, but all the more it is strengthening it. Banks issue loans, but return them oh so long (the term of a mortgage loan can be up to 25 years!).
Citizens from Eastern European countries (including Russians), who expect to receive a loan from banks in the amount of 80% of the cost of housing, have been especially successful in relation to mortgage requests. Alas, now no Spanish bank will give such an amount.
Today, the real size of the loan that a foreign buyer of real estate in Spain can count on is 50-60%. Getting 50% is real, but 60% is more problematic. In addition, you need to provide a certain list of documents that confirm your stable and high income so that the bank that issues the loan can trust you and agree to receive a mortgage.
Each bank has its own - special requirements. However, there are some standards:
- this is a mandatory certificate of employment (or a work contract), which indicates a monthly salary of at least 3.000 - 4.000 euros per month,
- tax returns (where it is indicated that you are an honest taxpayer and pay all taxes on all income: forms of personal income tax-2 or personal income tax-3),
- credit history
- bank statement with the balance of the account/accounts
- movements on the account/accounts
- a letter of recommendation from a bank in your country (or in the country in which you have a main account). BUT! This country should not be in an offshore zone (not Cyprus, not Latvia). In this case, Spanish banks will block the transfer of funds from these zones. Such measures have been taken for a long time in consequence of the fight against money laundering! Problems may arise in the future.
In addition to these requirements (according to your income), some banks have their own conditions. So, for example, 'Deutsche Bank' (Spanish office) accepts documents on income ONLY in Euro (i.e. the salary that you receive monthly cannot be in another currency).
So. It is realistic to get a loan from Spanish banks, but not more than 50% of the property value. Expect that when buying a villa worth 2,000,000 - 3,000,000 euros, the bank will gladly 'loan' you 70% of the cost of the house at 1,000,000 euros) is not worth it. Under such conditions, no bank will give a mortgage!
For apartments and inexpensive houses in Spain worth up to 500,000 and a little higher, you can count on a loan of 50%.
Interest rates of 2-3% per annum have already sunk into oblivion. Today, real interest rates are from 5% (they vary in different banks). But not less than 5%!
The loan repayment period is up to 25 years.
Thus, you can count on financial assistance from Spanish banks, but do not forget about your own funds.
If you find information about low interest rates, about loans of 80-100% of the cost of housing in Spain, then this is either a hoax or disinformation.
Circumstances have changed due to the abundance of mortgage requests for property purchases in Spain. Therefore, own funds are above all. Showing the bank your financial reliability, as well as providing a down payment of at least 50%, is a guarantee that you will not be denied a mortgage, and the bank will provide you with a loan (within reasonable amounts, of course).
