To get the best deal, compare multiple lenders and their offers before deciding
To get the best deal, compare multiple lenders and their offers before deciding

What are the best Spanish mortgages for non-residents?

Spain has long been a popular destination for foreigners, who have settled there or invested in a holiday home. If you're planning to buy a property in Spain, it is essential to explore your mortgage options.

Delia Mihuț
Written by: Delia Mihuț
Published at 2023-05-15
Last updated on 2024-05-06
Readtime 5 minutes

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 requesting and comparing these options is Homevest

Continue reading to discover the best Spanish mortgage solutions for non-residents and to understand how to select the option that suits your needs.

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. 

The lowest rate is 3,53%, including Euribor 12m, and the term range varies between 3 and 25 years. 

Pros
  • eligibility for mortgage applications is extended to non-residents earning in EUR, GBP, USD, CAD, CHF, DKK, NOK, SEK, PLN, AED, QAR, SAR, ILS, MXN
  • the application process is relatively quick and straightforward, with no translations required for your English documents 
  • opportunity to reduce the interest rate by 0.75% with bonus products
Cons
  • application outcomes may differ between branches, as each operates with its own set of rules

Sabadell offers a variety of options, including both fixed and variable rates, allowing borrowers to choose a mortgage solution that aligns with their financial goals. Read on for essential information to consider when choosing a Sabadell mortgage.

Cajasur 

Cajasur is a great option for buying a home in Costa del Sol and nearby Andalusian coasts, with good mortgage deals available.

With Cajasur, you can borrow between 80,000 and 1,000,000 EUR the lowest rate of 4.74%, 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. 

Pros
  • offers a variety of mortgage choices for non-residents, providing financing options of up to 70%
Cons
  • high minimum property purchase requirement of 120,000 EUR
  • Cajasur does not offer financing for investors who intend to purchase properties for rental purposes or for those seeking to finance the purchase of several properties, as the bank only mortgages the first home that the client purchases in Spain for their own use
  • rent income is not considered as income for the ratio

Unicaja

Unicaja is an excellent choice for EU, US, and UK citizens looking for flexible lending terms. They offer a maximum loan-to-value ratio between 60-70%, tailored to the mortgage product selected.

The lowest rate is 5,19% + Euribor 12m, and the term range varies between 10 and 30 years. 

Pros
  • the process of applying for a Unicaja mortgage is 100% online, except for going to the notary office
Cons
  • Unicaja favors non-resident customers who aim for property purchases over 200.000 EUR and maintain a maximum economic effort ratio of 25%
  • 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. 

They offer both fixed and variable options for those earning in EUR, while for USD, GBP, SEK, NOK, DKK, CAD, and AUD earners, they only offer variable options.

Pros
  • full remote banking 
  • no translations are required for your English documents
  • one of the few banks offering mortgages to non-residents earning Australian Dollars
  • special discount on the interest rate you pay if you arrange other Bankinter products
Cons
  • customers must fill out extensive forms to receive the non-binding offer
  • 50% LTV if you're an applicant from outside Western Europe
  • minimum property purchase requirement of 100,000 EUR
  • mortgage offerings may not be the most competitive in the market for certain loan types, especially for those seeking longer-term mortgages

Find out how you can obtain a Bankinter mortgage as a non-resident, including the eligibility requirements and necessary documentation.

Santander

Santander offers a variety of mortgage options for non-residents looking to buy a second home in Spain. Their Mundo Mortgage is open to individuals from EU countries, the US, and the UK, offering both fixed and variable interest rates for added flexibility.

The lowest rate is 5.58%, including Euribor 12m, and the term range varies between 1 and 20 years. 

Pros
  • offers loan amounts spanning from 100,000 to 1,000,000 EUR to meet various financial needs
  • eliminates the need for document translation, accepting paperwork in English, French, Italian, Portuguese, Swedish, German, and Spanish
  • offers financing for properties with values starting below 100,000 EUR
Cons
  • tends to have higher pricing on mortgage offerings
  • prefers processing applications from customers who have pre-selected a property
  • an opening fee of up to 0.5% may add to the overall cost of obtaining a mortgage

Learn how to get a Santander Spanish mortgage as a non-resident and find out the documents you need to qualify.

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 3.90% + 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 EUR
  • accepts applicants from various nationalities and residency countries
Cons
  • BBVA limits its mortgage offerings to those earning in Euros and applying from abroad

Continue reading to find out how to obtain a BBVA mortgage, including eligibility requirements and necessary documentation.

Caixa Bank

CaixaBank stands out as a top-tier choice for mortgages in Spain, offering competitive terms within the market. It provides an option for a reduced installment, allowing customers to lower their interest rate by as much as 1%, contingent on their choice of products and consistent maintenance throughout the mortgage.

The bank offers a loan amount ranging between 100,000 and 2,900,000 euros, and a maximum LTV of 70%.

Pros
  • accepts a wide range of currencies, including EUR, GBP, USD, CAD, DKK, NOK, SEK, CHF (in exceptional cases: BGN, CZK, HUF, PLN, RON)
  • attractive fixed-term offers, with rates dropping to as low as 3.06% if you choose to obtain both home insurance and security services
  • HolaBank mortgage includes free property valuation
Cons
  • in the affordability assessment, only 50% of rental income is considered

Find out how to obtain a CaixaBank mortgage, including steps and insights to guide your decision-making.

Banca March

Banca March is an ideal option for clients purchasing high-value properties on the Balearic Islands.

For non-residents, Banca March requires a minimum purchase price of 500,000 euros to qualify for a mortgage.

Customers with a net income of over 4,000 EUR can access an initial rate of 3.40% for the first four years, followed by 1.25% plus the 12-month Euribor.

Pros
  • the mortgage term extends up to 20 years, with the condition that it must be fully paid off by the time the borrower reaches 75 years 
  • you can borrow up to 60% of the property's purchase price
  • Banca March covers the notary fees for the mortgage deed and the costs for the Land Property Register
  • accepted currencies: USD, EUR, CHF, GBP, SEK, DKK, NOK
Cons
  • They authorize mortgages only on the Balearic Islands 
  • 1% agreement fee associated with the mortgage
  • DTI ratio is 25% for clients having their income in a foreign currency 
  • Banca March does not offer fixed mortgage rates

UCI

UCI 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, UCI 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
  • accepted currencies: EUR, GBP, USD, CAD, DKK, NOK, SEK, ISK, CHF, SGD, AUD, NZD, CZK
  • a diverse range of mortgage options for both new constructions and properties requiring renovation, expanding the selection for potential homeowners
  • availability of renovation financing with a mortgage, providing an appealing choice for purchasers interested in tailoring or enhancing a property
Cons
  • lenders offering flexibility might impose 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 or renovation projects, potentially constraining a buyer's renovation plans

Comparison of the 9 Spanish mortgages for non-residents

Bank
Average effective rate
Bank
Sabadell
Average effective rate
3,53%
Bank
Cajasur
Average effective rate
4,74%
Bank
Unicaja
Average effective rate
5,19%
Bank
Bankinter
Average effective rate
3,60%
Bank
Santander
Average effective rate
5,58%
Bank
BBVA
Average effective rate
3,90%
Bank
Caixa
Average effective rate
3,64% 
Bank
UCI
Average effective rate
5,22%
Bank
Banca March
Average effective rate
4,26%

The cost comparison was made on January 3, 2024

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.

In summary

When exploring mortgage options in Spain as a non-resident, it's crucial to weigh both the interest rates and additional fees of each loan. Loans with lower interest rates might come with higher fees, potentially increasing the total mortgage cost.

Negotiating mortgage rates is key to ensuring you get the best deal possible by comparing multiple lenders and their offers before deciding. It can be time-consuming, but fortunately, Homevest can simplify it for you. With Homevest, you can request and compare mortgage offers from multiple lenders all in one place. 

Explore Spain's 2024 mortgage rates for non-residents, find top deals, and learn key application tips with Homevest. 

Frequently asked questions

What are the qualifications for a mortgage loan in Spain?

Qualifying for a mortgage loan in Spain involves several key criteria that lenders will consider:

  1. Sufficient income
  2. Creditworthiness
  3. Down payment
  4. Property Appraisal
  5. Necessary documentation

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

A fixed-rate mortgage has an unchanging interest rate for the entire loan term, ensuring consistent monthly payments. In contrast, a variable rate mortgage's interest rate can fluctuate over time based on market conditions. For a more detailed exploration of these options, consider reading our comparison between fixed and variable mortgages.

You might also consider a mixed-rate mortgage, which offers a combination of both fixed and variable rates, providing a balance for those undecided between the two options.

Can I get a mortgage in Spain after Brexit?

British expats can still obtain mortgages to buy property in Spain post-Brexit. For a detailed understanding of the mortgage process from the UK, including key requirements and the changes due to Brexit, thorough research and preparation are essential.

 

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 about getting a mortgage in Spain, including requirements, interest rates, and info for non-resident buyers.

To learn more about how Homevest helped its customers, continue reading how Stefan and Vivien, a German couple, successfully bought a holiday home in Costa Brava. Learn about their journey, the mortgage process, and how Homevest's negotiation efforts saved them both time and money.

Sources used and checked on January 2024:

  1. Sabadell Mortgages
  2. Unicaja Mortgages
  3. Bankinter Mortgages
  4. Santander Mortgages
  5. BBVA 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.

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