What are the best Spanish mortgages for non-residents?

If you're considering buying a property in Spain as a non-resident, you may be interested in exploring your mortgage options. Fortunately, many Spanish mortgages are available for foreigners and Spanish expats. 

One helpful resource for comparing these options is Homevest. 

Continue reading to learn more about the best Spanish mortgages for non-residents and how to compare the offers quickly and fee-free. 

Sabadell 

Sabadell is a popular choice for non-residents seeking a mortgage in Spain. They offer various mortgage options with competitive rates and favorable terms. Non-residents seeking a mortgage through Sabadell must buy for a minimum of 150,000 euros. 

The variable rate is 1.2% + Euribor 12m, and the term range varies between 3 and 25 years. 

Pros

• the application process is relatively quick and straightforward

Cons

• non-residents looking to secure a Sabadell mortgage must have a minimum property purchase of 150,000 euros, which may be too high for some borrowers

Cajasur 

If you're interested in buying a house in the Costa del Sol and other Andalusia coastal areas, Cajasur is an excellent option for securing a mortgage. 

With Cajasur, you can borrow between 80,000 and 1,000,000 EUR at an initial rate of 2%, which is competitive in the Spanish market. However, it's worth noting that depending on the customer profile, there may be a 0-1.5% opening fee. Cajasur offers a range of mortgage options for non-residents, with up to 70% financing available. 

Pros

• Cajasur is an excellent choice for non-residents looking to buy property in the Costa del Sol and wider Andalusia area

Cons

• an opening fee of up to 1.5%, which can increase the cost of securing a mortgage

Unicaja

Unicaja offers fixed-rate options for the first six months of the mortgage loan at 3.65%, which increases to 4.15% for the remainder of the loan term. 

However, it is worth noting that the interest rates quoted do not include any potential bonus schemes or discounts that may be available through purchasing additional products with the bank. 

Unicaja also offers great mixed interest rate options, combining the security of fixed payments during the first repayment period and then switching to variable interest rate for the rest of the term. An example of these offers include a 2,30% fixed rate for the first 5 years followed by a variable rate combining Euribor and a spread ranging between 0,6-1,5%.

Pros

• flexible Spanish mortgages with a wide offering for non-residents
• the process of applying for a Unicaja mortgage is 100% online, except for going to the notary office

Cons

• fixed-rate options may not be the most competitive in the market, especially for those seeking longer-term mortgages
• a potential opening fee of up to 0.15%, which can increase the cost of securing a mortgage

Bankinter

Bankinter has various solutions for non-resident foreigners who need banking services in Spain, including those from the US and UAE. If you are interested in purchasing a property, Bankinter provides fixed-rate and variable-rate mortgages tailored to your specific situation, whether you are a resident or not. 

The bank also offers insurance and investment funds for non-resident foreigners.

Pros

• full remote banking that can remain close at hand when you are not in Spain
• flexible repayment options allow borrowers to choose a payment plan that works best for their financial situation

Cons

• mortgage offerings may not be the most competitive in the market for certain loan types, especially for those seeking longer-term mortgages

Santander

Santander offers a variety of mortgage options for non-residents looking to buy a second home in Spain. The Mundo Mortgage for non-residents provides flexibility with fixed and variable rate options, with terms of up to 20 years.

The variable rate is 2.13% + Euribor 12m, and the term range varies between 1 and 20 years. 

Pros

• the mortgage program allows for a loan amount range of 100,000 to 1,000,000 EUR
• accepts several currencies, including EUR and GBP, and applicants from various nationalities and residency countries, making it highly accessible for a diverse range of non-residents

Cons

• the maximum loan-to-value ratio is 70%, meaning applicants would need to finance at least 30% of the property's value independently
• the debt to income ratio should not exceed 35%, potentially excluding those with higher levels of existing debt
• an opening fee of up to 0.5%, which can increase the cost of securing a mortgage

BBVA

If you're a non-resident exploring property purchase options in Spain, BBVA's mortgage solutions deserve your consideration. 

BBVA's offerings include fixed and variable-rate mortgages extending to 30 years. This long repayment term facilitates manageable installments, easing the financial pressure on borrowers.

BBVA's variable-rate mortgage is 1.6% + Euribor 12m. This option is subject to market fluctuations and individual borrower circumstances.

Pros

• an impressive loan amount range from €100,000 to €2,000,000
• accepts applicants from various nationalities and residency countries

Cons

• BBVA limits its mortgage offerings to those earning in Euros and applying from abroad
• the maximum loan-to-value ratio is 70%, meaning buyers need to have at least 30% of the property's value available for the down payment
• the indebtedness must not exceed 35%

Caixa Bank

CaixaBank, a prominent Spanish banking institution, offers the Holabank mortgage scheme specifically tailored for non-residents, providing them with opportunities to invest in the Spanish real estate market. 

There are two primary types of mortgages available within this scheme. The first offers a fixed rate of up to 20 years with a bonus, charging a rate of 3.35%. The second type provides a similar term, but with no bonus, at a rate of 4.35%. Both mortgages have a loan amount range between 100,000 and 2,900,000 euros, and a maximum loan-to-value (LTV) of 70.0%.

Pros

• accepts a wide range of currencies, including EUR, GBP, USD, CAD, CHF, DKK, NOK, SEK, BGN, HUF, and PLN
• high loan amounts and extensive-term range (5-20 years), catering to a wide spectrum of financial situations

Cons

• the fixed indebtedness ratio at 35.0%, which might limit some borrowers' eligibility based on their income

Hipotecas.com

Hipotecas.com bank is a flexible non-resident lender that offers a variety of mortgage options for individuals looking to purchase new-builds or fixer-uppers. 

Whether you are interested in purchasing a property that is move-in ready or one that requires some renovation, Hipotecas.com has you covered. In addition to traditional mortgage options, the bank also offers financing for renovation, making it easier for individuals to afford the cost of fixing up their new home. 

Pros

• range of options: offering mortgage options for new-builds and fixer-uppers means borrowers have more choices when finding the right property to finance
• financing for renovation: being able to finance renovations with a mortgage can be an attractive option for buyers who want to customize or upgrade a property

Cons

• higher interest rates: flexible lenders may charge higher interest rates or fees to offset the additional risk they take on by offering more flexible financing options
• property-specific financing: financing for renovation may only be available for certain types of properties or renovations, which could limit a buyer's ability to make the changes they want

Comparison of the 8 Spanish mortgages for non-residents

The cost comparison was made on May 25, 2023

This comparison includes the mortgage interest rate, but there are also other costs that you should consider when analyzing the bank fees.

In summary

When considering mortgage options for buying a property in Spain as a foreigner, it is essential to consider the interest rates and the additional costs and fees associated with each loan. While some lenders may offer lower interest rates, they may also have higher fees that could make the overall cost of the mortgage higher.

To ensure that you are getting the best deal possible, compare multiple lenders and their offers before making a decision. It can be time-consuming, but fortunately, platforms like Homevest can help simplify it for you. With Homevest, you can easily calculate your budget and compare mortgages from multiple lenders all in one place. 

By comparing mortgage options and utilizing tools like Homevest, you can feel confident that you are making an informed decision and getting the best possible deal for your new property.

Frequently asked questions

What are the qualifications for a mortgage loan in Spain?

The qualifications for a mortgage loan in Spain can vary depending on the lender. However, in general, some of the requirements for obtaining a mortgage loan in Spain may include:

1. Adequate income: The borrower must demonstrate sufficient income to afford the mortgage payments
2. Good credit score: The borrower's creditworthiness will be evaluated based on their credit score and credit history. Having a good credit score can increase the chances of being approved for a mortgage loan
3. Down payment:  The borrower must make a down payment towards the property purchase. The minimum down payment required can vary depending on the lender and the type of property being purchased
4. Property appraisal: The lender will assess the property's value to determine the loan-to-value ratio (LTV). This ratio represents the percentage of the property value that the lender is willing to finance
5. Documentation: The borrower will need to provide various documents, such as ID, proof of income, tax returns, and property purchase contract, among others

Fixed or variable interest rate. What’s the difference?

A fixed-rate mortgage means that the interest rate is locked in for the life of the loan and will not change, regardless of any changes in the market. This means that your monthly payment will remain the same throughout the loan term, providing a predictable and stable payment schedule.

On the other hand, a variable rate mortgage means that the interest rate can change over time based on the current market conditions. 

Can I get a mortgage in Spain after Brexit?

Even though the UK is no longer part of the EU, British expats still have the right to buy property in Spain. If you are a UK citizen applying for a mortgage in Spain, you should be aware of the following requirements:

• A minimum deposit of 30% of the property price is required
• The maximum mortgage repayment period is 30 years
• The minimum property value is 100,000 EUR
• The property or land cannot be located in a rustic area (Suelo Rústico), as it is considered non-residential land and not within the municipalities approved development plan

Spain has long been a popular destination for foreigners, who have either settled there or invested in a holiday home. If you're considering doing the same, it's important to understand the process involved. Keep reading a guide that covers everything you need to know when buying a property in Spain as a foreigner.

To learn more about how Homevest helped its customers, continue reading a case study about our first mortgage in Spain featuring Ferran, a Spanish citizen living in Finland who inherited part of a house in Castellón, on the Costa del Azahar, and wanted a mortgage to finance purchasing the rest of the property.

Sources used and checked on May 2023:

1. Sabadell Mortgages
2. Unicaja Mortgages
3. Bankinter Mortgages

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.