Can foreigners get a 100% mortgage in Spain? Explore your options

Buying property in Spain can be thrilling, but it has its challenges, especially when trying to get a mortgage. Getting a 100% mortgage can be even more difficult for foreigners, but there are still options you can look into. 

Let's see what the chances are for full financing and what you can do if you can't get a 100% mortgage.

Can foreigners get a 100% mortgage in Spain?

Foreigners can occasionally obtain a 100% mortgage in Spain, although this is rare.

The best chance for getting 100% financing is if the property is owned by a bank. Banks in Spain may offer better deals for their own properties because they want to sell them quickly. 

Other possible situations include if you are a civil servant, have a steady job, high financial stability, or are under 35 with parental collateral.

Some banks, like Santander, may also offer 100% financing to private banking customers if they use their investments as collateral for the extra 30%.

What other options are available for foreigners?

For most foreigners, banks in Spain are more likely to finance between 45-60% of the property's value, depending on your specific situation and financial profile.

If you buy a second property, the loan-to-value (LTV) ratio will be lower, usually 60% or less.

What is LTV, and how can you increase its value?

LTV, or Loan-to-Value ratio, is the percentage of the property value that the bank will lend you. 

For example, if the LTV is 70%, you need to put down the other 30% as a deposit.

If you want to increase your LTV, you can improve your credit score, provide extra collateral, or secure long-term employment in Spain. 

A higher credit score shows that you’re a reliable borrower, extra collateral can make the bank more comfortable lending you more, and having a stable job in Spain can also help convince the bank to offer higher financing.

Here’s a general look at typical LTV ratios for different types of buyers:

An 80% LTV is normal for Spanish residents and usually applies to both locals and foreign residents. 

However, if you earn money in a currency other than euros, your LTV may be lower—about 40-50%—because of currency risks. 

One exception is if you earn in GBP, in which case you might get the same LTV as someone earning in euros.

Accurate, fast, and free budget estimation with Homevest Spain

If you want to gain a better understanding of your financial options, a budget estimation can help you determine how much you can borrow from Spanish lenders.

Homevest Spain provides you and your partner with an accurate estimation to identify the maximum loan you can secure, allowing you to quickly determine your price range.

Homevest collects only a few key details, ensuring a fast and hassle-free process. 

With Homevest budget estimation, you’ll gain a clear picture to improve your financial profile or begin searching for properties within your budget.

Frequently asked questions

How much deposit do foreigners need to buy a property in Spain?

Depending on their unique financial situation and the LTV they are eligible for, foreigners typically have to contribute 30% to 60% of the property's value.

What is the average LTV ratio for non-residents?

Generally speaking, the average LTV for non-residents ranges from 45 to 60%, depending on the bank's evaluation of the borrower's risk profile.

How do existing loans impact an individual’s borrowing capacity for a mortgage? 

Your debt-to-income ratio will take existing loans into account, which could lower the amount you can borrow for a mortgage. 

Can non-residents get a mortgage in Spain without collateral?

Non-residents usually need to provide a deposit, and additional collateral may be required, especially if they are seeking higher LTV ratios.

To sum it up, it’s hard for foreigners to get 100% financing for a mortgage in Spain, but it’s not impossible. You might qualify if you buy a bank-owned property or if you can show that you are very financially stable.

Sources used and checked in November 2024:

1. El Mundo: Cómo conseguir una hipoteca al 100%
2. El Economista: ¿Cómo conseguir una hipoteca al 100%?
3. PTI: loan to value in Spain

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.