How much can you borrow for a Spanish mortgage? Explore Homevest Spain

When planning to buy a property abroad, knowing how much you can afford from the outset can clarify your next steps. Especially when you're a non-resident and dealing with different requirements that you're used to in your country of residence.

Homevest is a digital service that provides an accurate estimation to better understand your buying power in Spain.

How much can you borrow for your mortgage in Spain?

Depends on your specific circumstances.

The amount you can borrow for a mortgage in Spain varies from case to case.

Spanish lenders assess each customer individually to ensure they don't pose a high lending risk.

Several key factors play an important role in determining the amount of financing you may qualify for, including:

1. LTV, or loan-to-value ratio, defines the maximum financing you can receive based on the property's appraised value, which also determines your required upfront payment. In Spain, the LTV for non-residents caps at a maximum of 70%, though it often falls between 45-60%. Locals, including foreign residents, might access up to 80% LTV.
2. DTI, or Debt to income ratio, reflects the portion of your income that goes toward fixed residential expenses (such as an existing mortgage or rent) and the new mortgage payment. Generally, your DTI ratio should not exceed 40% of your net monthly income to qualify.
3. Residency and currency impact both mortgage eligibility and terms. Non-residents with non-EUR income, for example, often face stricter conditions, while GBP and USD earners may receive more favorable terms. 
4. Property type and location as some banks adjust loan limits based on the property's intended use (primary residence, investment, holiday home), and location, with properties in major urban areas sometimes qualifying for slightly higher financing options.

How can you explore your affordability with Homevest?

Knowing how much you can afford from the beginning can make your next steps more straightforward. You'll be able to see a price range to look further for a property.

Homevest provides an estimate calculation to help you understand better how much you can secure from Spanish lenders. If you're applying alone or with a co-applicant, you may see the maximum loan you can access with your profile.

Getting a budget estimate with Homevest is quick and easy, giving you a clear overview of your buying power. All you need to do is share key details like residency, source of income, expenses, and liabilities.

You'll receive a personalized estimation showing your highest and lowest affordability, explaining how much you can borrow based on your debt capacity and interest rate.

FAQs - Budget estimation with Homevest

1. What information does Homevest need to provide an accurate estimation?

Homevest requires only a few details to estimate your budget: residency, source of income, expenses, and liabilities. They use this information to assess your profile according to the main criteria requested by Spanish banks.

2. How much does the Homevest budget estimation service cost?

Getting an accurate budget estimation with Homevest is free.

3. How long does it take to receive your estimation by email?

You'll receive a personalized document straight to your inbox within 24 hours. That's why Homevest requests an e-mail address during the estimation process.

4. Is Homevest a safe platform?

Yes, Homevest is safe. They comply with EU GDPR and UK DPA regulations. Homevest collaborates with licensed brokers in Spain to help customers apply for mortgages.

Sources used in this article:

1. Homevest privacy policy
2. Homevest credit intermediary services

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.