Financing the Property

Several roads are leading to Spain.

We make a distinction between them:

- a new build property that you buy "Off plan", with an average construction time of 12 months,
- an existing home,
- or a newly built house that is key-ready and can therefore be delivered almost immediately.

Newly built house:

In most cases you pay in several instalments. For example:

- 40% when signing the sales contact,
- 30% on a date agreed in advance in the sales contract,
- and the last 30% on delivery.

It is wise to enquire about the payment terms.
Sometimes we can adjust these for you in consultation with the builder, so this is more adapted your personal situation.

Existing home:

In this situation you make a down payment of usually 10% and the rest will be charged upon completion.

Key-ready house:

In this case you usually pay in two instalments;

- one upon signing the sales contract
- and one on delivery.

The percentages differ per project developer.

A property in Spain can be financed in different ways.

Here are several possibilities you can consider:

- You pay from your own resources:
- You take out a mortgage on the property in Spain.

  In most cases this can be up to 70% of the purchase price.
  You then must pay the first 30% yourself, as well as the additional costs.

- You can do this out of your own means, or perhaps you have an excess value on your home in Belgium.
- You buy together with your child(ren) and they become co-owners. This is possible if they contribute money or if, for example, they count towards the mortgage.

Several things are important to know:

A Spanish mortgage is only granted on delivery.
If you finance 70%, and your payment terms would be 40-30-30 (as in the case of a purchase of a new home), you 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 terms of payment with the construction companies that are better suited to your personal situation.

A Spanish bank will want to appraise your property when it is (almost) finished.
In other words: 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 the rates and monthly charges can be given to you without an appraisal.
The rates and the duration of the mortgage 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 wealth situation
- your age **
- whether you take out life insurance

** A Spanish bank takes out a mortgage on an annuity basis in almost all cases.
This means that you repay the loan within the agreed term.
The term will in most cases end at the age of 75. Because of this it may be interesting if your child(ren) count, provided they have an income of their own.
The term of the mortgage can then be considerably longer.

We are in contact with several banks in Spain where the staff will be happy to explain what the possibilities are in your situation.
If desired, we will be happy to help you make the initial contact or request a quotation.
Gladly we make you an overview of a global calculation of your monthly charges and the starting point for a certain mortgage amount.