What are the best mortgages in Spain for US citizens?

Choosing the best Spanish mortgage as a non-resident can take more time and effort, especially when you’re unfamiliar with the market and are used to a different banking system in the US. How can you choose the best mortgage to buy a property in Spain? 

We’re here to help you. 

In this article, we’ve reviewed the best mortgages in Spain for US citizens. We’ve included all the information you need - interest rates, best use cases, pros and cons – so you can make up your mind. 

Comparison of the best 8 mortgages in Spain for US citizens

Homevest evaluated the bank’s offers for its clients, calculating the average effective interest rates over the past three months. 

The effective interest rate approximates the annualized interest rate of a loan offer, considering the loan duration and initial promotional interest rate periods.

1. Sabadell: competitive deals

Sabadell offers highly flexible mortgage terms, with financing options ranging from 3 to 30 years. While they don’t have a strict property value requirement, they prefer properties with a value of at least 70,000 EUR.

The Sabadell fixed mortgage has a 3.50% interest rate, which may change depending on the property type, value, and deposit size.

Pros

• covers all of Spain
• opportunity to reduce the interest rate by 0.75% with bonus products
• no translations are required for your documents

Cons

• outcomes may vary as each branch operates differently

2. Santander: flexible option for second homes in Spain

Santander is known for its Mundo Mortgage program, which offers financing up to 1,000,000 EUR.

Despite being on the higher side, it might be a good choice for those purchasing properties valued at under 100,000 EUR.

The variable rate starts at 1.84% for the first six months, then adjusts to Euribor + 1.84%. 

Pros

• no translations are required for your documents
• provides flexibility with fixed and variable rate options, with terms of up to 20 years
• offers private banking, making it a viable option for wealthy individuals

Cons

• Santander requires applicants to have already found the property they intend to purchase and prepared the nota simple in advance
• expensive offers

3. Cajasur: buying property in Costa del Sol and Andalucia region

While most Spanish lenders that offer financing to non-residents serve all of Spain, some specific banks focus only on certain regions. Cajasur is one such case, tailoring its mortgage offers to foreigners interested in buying properties in Costa del Sol and Andalucia.

Cajasur offers financing up to 70% of the property value, with the maximum amount borrowed being 1,000,000 EUR. However, the exact terms depend significantly on your financial profile.

Pros

• becoming a long-term client and using additional services like investment funds can lead to lower mortgage rates
• opting for Cajasur's insurance could cut your rate

Cons

• Cajasur focuses on first-home buyers who plan to use the property themselves
• minimum property purchase is 120,000 EUR
• does not offer mortgages via a Sociedad Patrimonial (or any other corporate entity)

4. CaixaBank: fixed-term offers with low rates

CaixaBank has a dedicated program for international buyers called HolaBank, where non-residents can access loans of up to 2,900,000 EUR.

To qualify for a Holabank mortgage as a US citizen, your annual net income must be at least the equivalent of 48.000 EUR. All your monthly commitments (including the mortgage) cannot exceed 30% of your monthly net income.

CaixaBank is one of the most competitive Spanish banks for mortgages, offering discounts if you purchase additional products.

Pros

• the interest rate can be reduced by up to 1% if you choose home insurance and security services.
• free property valuation with the bank

Con

• only 50% of rental income is considered in the affordability assessment
• the bank can be slow in sending the first offers

5. Bankinter: full remote banking

As a US citizen, you can only access a variable mortgage at Bankinter due to the currency in which you earn your income. 

The good news is that there is no maximum borrowing amount, but keep in mind that your LTV is limited to 50%.

Pros

• full remote program that easier the process for foreigners 
• no translations for your English documents

Cons

• might be difficult to borrow over 4,000,000 EUR
• no possibility of accessing a fixed mortgage
• the offers might not be very competitive

6. UCI: purchasing new-builds or fixer-uppers

If you prefer to buy a resale property and design it to your liking, UCI offers mortgages to purchase and renovate houses in Spain. 

These mortgages cover both the property's purchase price and renovation costs, provided you buy a second-hand property.

As a non-resident, you must contribute 40% of the sale price.

Pros

• no translations for your English documents
• no need to open a bank account at UCI
• a grace period of up to 12 months, during which you only pay interest until completion
• a green mortgage helps you purchase a home that needs renovation

Cons

• higher interest rates or fees to balance the increased risk associated with more accommodating financing options
• renovation financing may be restricted to specific property types

7. Unicaja: property purchases over 200.000 EUR

Unicaja prefers non-resident customers who aim for property purchases over 200,000 EUR and maintain a maximum economic effort ratio of 25%. 

They do not accept self-employed applicants and offer a maximum loan-to-value ratio between 60-70%, tailored to the selected mortgage product.

Pros

• online process that simplifies the application 
• term range varies between 10 and 30 years

Cons

• fixed-rate options may not offer the best rates available in the market
• an opening fee of up to 0.15% can add to the overall cost of securing a mortgage
• no self-employed applicants are allowed, even when applying with a co-applicant (neither can be self-employed)

8. Banca March: purchasing high-value properties on the Balearic Islands

Banca March is a good option for customers with a net income of over 4,000 EUR who want to buy properties in Mallorca or other locations in the Balearic Islands.

Banca March requires a minimum purchase price of 500,000 EUR to qualify for a mortgage and offers only mixed-rate products.

Pros

• borrow up to 60% of the property's purchase price, depending on your profile
• special products available for obtaining a mortgage via a corporate entity
• mortgage term extends up to 20 years

Cons

• mortgages are authorized only for properties on the Balearic Islands
• 1% agreement fee associated with the mortgage
• early cancellation fee: 2% during the first 4 years, 0.15% during the 5th year, and 0% thereafter

In summary

There are many options for a mortgage in Spain as a US citizen, and the best choice for you will depend on your specific circumstances.

This guide presents a comparative analysis of 8 of the best Spanish mortgages you can access to buy property in Spain as a non-resident.

Homevest is a quick and easy solution that connects you with top brokers to help you compare options and find the best terms for your needs.

You can also estimate your budget to understand your buying power and prepare for the next steps in your buying journey.

What mortgage terminology in Spanish should you know?

If you're wondering how do you say mortgage in Spanish, the term you're looking for is hipoteca, which refers to this type of financing.

Here are other important mortgage terminology in Spanish that you should be familiar with:

• Comisión de Apertura: the opening fee for setting up the mortgage
• Gastos de Formalización: the costs associated with formalizing the mortgage
• Contrato de arras: the reservation contract, similar to a deposit agreement
• Nota Simple: the document that confirms property details from the land registry
• NIE: the Foreign Identity Number required for buying property or securing a mortgage in Spain

Sources used and checked in December 2024:

1. Sabadell mortgages in Spain for non-residents
2. Santander mortgages in Spain for non-residents
3. UCI mortgages in Spain for non-residents
4. Unicaja mortgages in Spain for non-residents
5. Banca March financing for non-residents
6. Bankinter mortgage for non-residents

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.