A guide to BBVA vs. Sabadell mortgages for foreigners, comparing offers, rates, pros, and cons. Continue reading for a comparative analysis of these two Spanish lenders.
If you want to find a lender for your mortgage in Spain, you’ll have many options, even as a foreigner. But which is most convenient for your profile?
In this guide, we’ll compare two of the big names in the country: BBVA and Sabadell. Both lenders offer mortgage products for foreigners looking to maximize their property investments.
Read on to find out who comes out on top, looking at everything from requirements and rates to pros and cons.
We’ll also mention a digital platform to speed up your mortgage application from abroad. With Homevest, you can connect with brokers and top Spanish banks to find the best deal.
BBVA is one of the top banks in Spain that offers mortgages to foreigners from various nationalities and residency countries who earn their income in euros.
Their offering includes fixed and variable-rate mortgages extending to 30 years, with a flexible amount range of 2,000,000 EUR. However, it focuses only on residents coming from SEPA countries.
Sabadell stands out as one of the most competitive Spanish banks for non-residents. It is also more flexible regarding income currency.
In addition to EUR, their eligibility for mortgage applications extends to over 10 other currencies, including GBP, USD, and CHF.
The bank offers highly flexible mortgage terms, with financing options ranging from 3 to 30 years, without imposing a strict property value requirement.
Both BBVA and Sabadell require applicants to have permanent employment with at least 6 months of tenure.
You must provide a minimum deposit of 30%, have a debt-to-income ratio below 40%, and have no bad credit history.
BBVA requires that you earn your income in euros, while Sabadell asks that your monthly net income range from 2000 to 2500 EUR or the equivalent in an accepted currency.
While Sabadell doesn’t have a strict threshold for property value (although they prefer properties with a value of at least 70,000 EUR), BBVA requires a minimum property value of 100,000 EUR for financing.
For both BBVA and Sabadell mortgages, you need identification documents, proof of income, and property details.
Expect the documents to be slightly different for the two banks.
If you already own a property in Spain or elsewhere, you'll need to provide:
Homevest allows you to upload and consolidate the necessary mortgage documents easily.
These documents undergo a verification process and are shared with eligible banks. You can request and compare mortgage offers by uploading the same documents for each new request.
Here’s an overview of the standard mortgage rates for both lenders to help you understand their offers.
Remember that the mortgage rate can vary depending on the type of property you buy, its value, and your deposit amount.
3.90% NIR
4.57% APR
3.60% NIR
4.08% APR
First-year from 1.99% NIR
All other years from Euribor + 1.60%
5.65% variable APR
First-year 3.00% NIR
All other years from Euribor + 1.60% NIR
5.41% APR Variable
3.00% NIR first 3 years
Euríbor + 1.60% NIR other years
5.23% APR
You can lower your interest rate by up to 1% with additional products like home insurance or by having your paycheck or income paid directly into the account associated with the mortgage, as is the case with BBVA.
Sabadell also offers the opportunity to reduce the interest rate by 0.75% with bonus products.
Let’s have a quick recap about how BBVA and Sabadell mortgages for foreigners stack up against each other:
Income currency requirement
Which bank you choose for your Spanish mortgage is up to you. After reading this comparison, you should have a better idea of what each one has to offer and how it applies to you.
If you want to explore other options, you might check out Homevest.
It connects you with multiple Spanish lenders, including Bankinter, Santander, UCI, and Unicaja.
Either way, banks assess cases individually, and the interest rate can vary.
Sources used and checked in June 2024:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
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