Investing in Spain - how do I get a home mortgage?

Would "real estate" Spain be the privileged Eldorado for retirees, real estate investors, expatriate workers? In any case, this category of people is increasingly developing plans to buy a property in Spain - with the aim of living there, selling it or renting it out. Perhaps you are one of them and, because of a lack of equity capital, you are asking yourself this recurring question: "how do I get a mortgage to invest in Spain? ».

In this case, our experts will be happy to help you with your project. They will help you through the whole procedure in order to make it easier for you to obtain this loan, which is so important for you. Because, as we are well aware, the realization of your project contributes greatly to the quality of your life.

Banks in France versus banks in Spain: which ones to apply for its purchase in Spain?

The good news is that you have full latitude to choose the country where your lending bank is located. However, applying for a home loan in France as in Spain has its advantages and disadvantages.

Applying to a bank in France

The first condition to which you are subject in order to obtain a property loan for the purchase of a property in Spain is to already be the owner of a property in France. This property, which will be mortgaged, if necessary, will serve as a guarantee with the lending bank. Thus said, the advantages and disadvantages of a loan in France can be summarized as follows:

The advantages.

Borrowing in France to invest in Spanish real estate offers you the advantage of benefiting from more attractive rates than if you borrowed locally in Spain. These rates vary between 1.3% and 1.6%.

Disadvantages.

In addition to the mortgage you are required to take out, few banks in France grant loans for the purchase of a second home in Spain. If banks such as Crédit Mutuel or the BBVA (Banco Bilbao Vizcaya Argentaria) are favourable, your income, family situation and solvency may be a handicap.

Applying to a bank in Spain

There are also advantages and disadvantages when it comes to using a local bank to invest in real estate in Spain. However, you should be aware that if you are a Spanish resident, you will benefit from the same procedure applicable to Spanish citizens. Also, under certain conditions (such as having a co-borrower in Spain), you can benefit from the same advantages as a resident: a loan of 80% of the value of the property to be purchased, repayable over a period of 25 years, with an interest rate of between 2.5% and 2.6%°.

The advantages

If you are a local worker with a consistent and regular salary, you have fewer constraints in your administrative procedures for obtaining a housing loan in Spain. Better still, the local Spanish banks exempt borrowers from the mortgage when they are able to make a minimum personal contribution of 30% of the appraised value of the property to be acquired. In addition, having an insurance policy (offered by your bank), is also an advantage to consider. However, a contract can always contain pitfalls. So think about having it translated (as well as any other document), by an experienced translator - in order to avoid certain surprises that could impact your rights and duties.

Disadvantages

Some banks in Spain do not rely on mortgages to grant non-resident applicants a housing loan - on the grounds that it is impossible to take a case to a foreign court in the event of a dispute. But one of the big drawbacks faced especially by the latter is a question of nationality. On the one hand, residents benefit from a loan of up to 80% of the appraised value of the property to be acquired. On the other hand, non-residents only benefit from a maximum of 70%, 60% or even 50% of the same value.

Of course, this is your future: it is up to you to choose between France or Spain to start the procedure for obtaining your property loan, with the bank of your choice.

But as a French-speaking estate agency based on the Costa Brava and through our expertise, we know that the price conditions are often advantageous in Spain. Also, the procedures are easier and faster when it comes to borrowing on the spot. If this is your choice, you should understand the procedure by reading on.

Investing in Spain - conditions for opening an account and supporting documents to be provided by residents and non-residents

Your own investigations with banks, your research on the Internet and, possibly, the information collected from third parties should enlighten you on the ideal choice of your banking partner. But above all, you should focus on the geographical location of your partner and the quality and advantages of its services. Once you have made your choice, you will be asked for supporting documents to open your current account. The constitution of these documents depends on your status.

As a resident :

• A valid identity document;
• A proof of residence ;
• Proof of professional status;
• A NIE number (Número de Identidad de Extranjero).

As a non-resident: o A valid identity document; o Proof of residence; o Proof of professional status; o NIE number (Número de Identidad de Extranjero):

• In addition to the above-mentioned documents, a property deed (in the case of purchase of an old property) ;
• A deed of declaration (in the case of new property) ;
• Your bank statements for the last quarter;
• Your last pay slips...

Buying in Spain - always have someone with you

Investing in real estate by buying a house in Spain is both a smart decision and a real opportunity. But the language barrier can be a real handicap for real estate investors. The content of the documents to be translated, the steps to be taken, mastery of the Spanish property market, etc., all require personalised expertise.

As a French-speaking real estate company, we take all these issues very seriously. Our promise is to accompany you throughout your loan process...

All that remains is for you to benefit from our expertise and achieve your goal: a successful investment and the acquisition of the property of your dreams in Spain.