Mortgage

Get a loan to buy a property in Spain

In this section, we have answered the common questions about getting a loan to buy a property in Spain. If you have any other questions about getting a loan in Spain, please let us know.

Is it possible to get a loan to buy Seonsa projects?

Yes, loans for real estate can be obtained at a reasonable price of up to 60 to 70 percent of the price of the property, and Seonsa will guarantee the loan after receiving the initial documents from you.

By whom and how is the loan paid?

In general, property purchase facilities are provided by banks in the form of long-term loans. It is also possible to get a loan to buy pre-owned properties at auctions. It is important to note that these loans are paid only if the property is purchased and it is not possible to obtain a loan for personal purposes. By holding meetings with your Spanish lawyer with the lending bank, it is possible to receive bank facilities up to 60 to 70% of the desired property price.

What documents are required to receive a loan from a bank?

Banks will ask you for various documents to transfer bank facilities to you, and it is recommended that you prepare and complete them in the best possible way beforehand.
These documents are at least as follows:

  • If you work for a company:
    • The last 3 pay slips
    • Statement of the last 6 months of the bank account
    • Letter of introduction from the workplace stating the date of employment and confirmation of monthly income
    • Copy of passport
  • If you own a company:
    • Official documents indicating the registration of the company
    • The company’s latest tax return
    • Statement for the last 6 months of the bank account
    • Letter confirming monthly income
    • Copy of passport

How much does it cost to get a loan from a bank?

If you intend to receive bank facilities from the bank in order to purchase the property, about 1 to 1.5 percent of the total loan amount will be received by the bank as the cost of preparing the loan.

How much of the propery price does the bank loan cover?

Typically, non-residents who intend to receive a loan from a Spanish bank can receive a loan of up to 60 to 70 percent of the value of the property. Residents are also eligible for loans up to 80%. The value of the property is always determined by the appraiser. Your property may be assessed by the banks themselves or with the help of some of the bank’s approved appraisal institutions. Fortunately, appraisers who are tasked with pricing your property always report the actual price and in some cases even more than the final price of the property as the appraised price.

With what currency can you get a loan from a bank?

Bank facilities are available in most common currencies, but be aware that if the currency you choose to borrow is not the same as the euro, your loan may be cheaper when the currencies match. It will be more expensive than the real amount, depending on the currency you choose, whether it is stronger or weaker than the euro.

What is the interest on bank loan?

The interest rate currently on the facilities received from the bank to buy the property is about 6%. This will be considered as the bank interest rate in the first year. This rate will change slightly in the coming years based on the economic and trade conditions of Spain, Europe and the world, and may be more or less.

When do interest rates on bank loans change?

These interest rates change at the end of each year, based on the highest rate for the new year.

How long is the loan repayment period?

Typically, the loan repayment period can be 10 years, 15 years and 20 years, and in some cases up to 35 years.