Getting a mortgage before or after moving to Spain?

Moving to Spain feels like checking a box on your bucket list. The weather is splendid, the food is tasty, and life moves at a slower pace with a bit more joy than usual.

Everyone dreams of living where summer feels eternal, and the vacation sensation is permanent.

You've decided to buy a house and move to Spain, either for the summer or for good. 

Now what? 

You're looking for a mortgage solution and wondering whether securing it before or after moving to Spain is better.

Let’s explore the options and find out what’s best for your situation.

Is it difficult to get a mortgage in Spain?

A mortgage in Spain is generally more accessible if you're a resident. While it's not impossible for non-residents, the process can be more complex.

If you have a stable and consistent income and low debt in your home country, you could be a strong candidate for a mortgage from Spanish banks.

What are the requirements for getting a mortgage in Spain?

When applying for a mortgage in Spain, the requirements differ for residents and non-residents. 

Banks usually ask for more documentation from non-residents to mitigate any risks associated with borrowers from other countries.

Here's a comparison:

“The personal contribution, or down payment, must be higher for non-residents. This is indispensable when applying for a mortgage in Spain. Another aspect often overlooked is the origination fee and taxes, which typically account for about 10% of the total project cost. You may spend more than anticipated if you forget to include these in your calculations.” says Natalia Dominguez, International Buyer’s Manager at UCI.

What are the interest rates for a mortgage in Spain?

Current interest rates for mortgages in Spain range from 2.55% to 4.5%, depending on the bank and any additional bonus products.

The terms you might get also depend on the type of property, its value, and the size of your deposit. 

A mortgage broker can negotiate on your behalf to secure better terms. 

Before moving forward with your mortgage process, see how much you can afford when seeking a mortgage abroad. Homevest can help you with this.

What are your mortgage options?

Residents have many options for financing a mortgage, and non-residents also have many choices, especially if they earn their income in euros. 

Many Spanish banks are available to help finance your property.

“Having income in a stable currency like the EUR, USD, SEK, or NOK opens up a wider range of mortgage choices. A more volatile currency can limit your options” says Maria Isabel Morillo, Deputy Branch Manager at Cajasur.

Santander, Sabadell, Banca March, Bankinter, and BBVA are among the Spanish banks that offer mortgages to non-residents. 

So what’s best, getting a mortgage before or after moving to Spain?

The answer to this question depends on your timeline and financial situation.

If you plan to buy a property as your primary residence, you might get better terms by applying as a resident. But this means moving to Spain first and finding a temporary home, which can add complexity to your case and cause you to spend more on rent. 

On the other hand, securing a mortgage before moving to Spain as a non-resident can offer good terms if you can demonstrate financial stability and your income is in a strong currency. 

Weigh the pros and cons to decide what’s best for you.

Whichever option you choose, there are plenty of solutions to help you move to Spain and settle into your own home. Homevest brings you one step closer. 

Find your right mortgage by signing up for a fast and easy process.  

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.