Financing

PURCHASE FINANCE

It is wise to enquire about the different payment terms. Sometimes we can adjust these for you in consultation with the builder, to better suit your personal situation.

• Newly built house
• Resale property
• Turnkey house

THERE ARE SEVERAL WAYS TO FINANCE A PROPERTY IN SPAIN.

Here are some options you can consider:

• You pay with your own funds
• You take out a mortgage on the property in Spain
• You can do this from your own resources, or you have a surplus value on your home
• You buy together with your child(ren) and they become co-owners.

A NUMBER OF THINGS ARE IMPORTANT TO KNOW:

A Spanish mortgage is not provided until completion. If you finance 70%, and your payment terms would be 40-30-30 (such as when buying a new-build house), you will first have to pay the 40 and 30% yourself and you will only be able to dispose of the 70% mortgage upon completion. We can often negotiate payment terms with construction companies that better suit your personal situation. A Spanish bank will want to value your property itself when it is (almost) finished.

This means: if you want to ask more than one bank for a mortgage offer, you will have to pay for the valuation each time. An indication of rates and monthly costs can be given to you without a valuation.

Mortgage rates and duration depend on many factors, almost all of which have to do with the level of ‘risk’:

• The percentage of the purchase price you want to borrow
• Your income and asset situation
• Your age
• Whether you take out life insurance

The Spanish bank will almost always take out a mortgage on an annuity basis. This means that you will repay the loan within the agreed term. In most cases, the term will end at the age of 75. This can make it interesting if your child(ren) co-sign, provided they have their own income. The mortgage term can then be considerably longer.

We are in contact with several banks in Spain where the staff will be happy to explain the possibilities in your situation. If required, we are happy to assist you in making the initial contact, or requesting an offer. We will be happy to provide you with a rough calculation of your monthly expenses and the outgoing mortgage amount.