A mortgage broker can get you better deals from banks
A mortgage broker can get you better deals from banks

Mortgage rates in Spain for non-residents [March 2024]

When comparing mortgages for a property in Spain, staying updated on the latest market deals can help you to negotiate effectively. Negotiation is standard practice, and this is where Homevest excels, helping you secure the most advantageous deal.

Nicholas Vinberg
Written by Nicholas Vinberg
Published at 2023-09-01
Last updated on 2024-04-05
Readtime 5 minutes

When assessing mortgage rates in Spain for 2024 for your property purchase as a non-resident, it's essential to be well-informed about the latest market rates to secure the best price. Negotiating mortgage rates is standard practice, and this is where Homevest excels, helping you secure the most advantageous deal.

We have calculated the effective interest rate for each mortgage to make it easier to compare fixed, variable, and mixed deals while accounting for a lower initial interest rate usually in place for the first year or two. 

Average interest rates in March saw a slight drop from February's figures

In March, the average interest rate in Spain continued to drop to 4.25%, a slight reduction from the previous month's 4.27%. This marks a continued decline from 4.91% in January 2024.

Month Lowest interest rate Average interest rate Highest interest rate
May 3.90% 4.47% 5.41%
June 3.90% 5.18% 5.63%
July 4.20% 5.44% 6.25%
August 3.00% 4.87% 5.88%
September 3.86% 5.37% 6.98%
October 3.55% 5.48% 6.37%
November 3.45% 5.20% 6.38%
December 3.75% 5.39% 6.54%
January 2024 2.75% 4.91% 6.45%
February 2024 3.05% 4.27% 6.72%
March 2024 3.25% 4.25% 7.24%

As the year began, home buyers returned to the market, with banks responding quickly—sometimes on the same day. The average wait is still 7 days, the same as the month before. Banks are continuing to make more competitive offers.

The best average mortgage rate in our dataset for March was 3.25%, which is a slight increase from February's rate of 3.05%.

This rate was for a variable mortgage from Sabadell, on a property in the Balearic Islands valued at €260,000, with a 50% LTV ratio, offered to a US resident. The term of the mortgage offer was 15 years.

Sabadell continues to give the best mortgage offer for non-residents

Since the beginning of 2024, Sabadell has made the most competitive offers. This trend persisted into March when Sabadell presented the best offer among all banks in Spain at 3.25%. The offer was for a variable-rate mortgage with a 15-year term, including life insurance. The 3.25% rate was fixed for the first year, followed by 1.35% plus the 12-month Euribor for the remainder of the term.

There was a 1% opening commission.

Sabadell offers a variety of options, including 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.

Both fixed and mixed mortgage rates experienced a slight increase in March

It's important to consider the variety of mortgage products available in Spain, including variable, mixed, and fixed rates, when comparing the best interest rates.

The average variable rate mortgage rate in March rose to 5.60%, up from February's 5.40%.

Similarly, the average fixed-rate mortgage increased to 4.25% in March, from 4.05% in the previous month.

Mixed-rate mortgages also witnessed an uptick, reaching an average of 5.09%.

Historically, variable-rate mortgages have been cheaper, because the borrower takes on more risk. Over the past year, however, the fixed-rate mortgages have been cheaper, as banks expect the interest rates to come down over time. 

Interested in a side-by-side comparison? Explore a comparison between fixed vs. variable rate mortgages to make an informed decision.  

How will the Spanish mortgage interest rates look in 2024?

According to the Financial Times, the market remains optimistic that the European Central Bank will cut interest rates in Q2 this year, which would be good news for home buyers. 

An ECB survey shows that consumer expectations for eurozone inflation have declined, which is also good news, as rising inflation expectations could lead the ECB to keep rates higher for longer.

However, several members of the ECB governing council have indicated that the market has been too optimistic. 

The European Central Bank's (ECB) interest rate decisions directly influence the Euro Interbank Offered Rate (EURIBOR). The ECB's rates set the tone for the cost of credit in the economy. When the ECB lowers rates, it tends to lower the EURIBOR, reflecting the decreased borrowing costs for banks.

An expected reduction in the ECB’s interest rate is likely to contribute to fixed-rate offers getting cheaper already in Q1. Variable interest rates are determined by the EURIBOR benchmark, which could also continue to go down in Q1 if banks expect the ECB to reduce its rate in Q2.

How we calculated the effective interest rate

We created an amortization table for each mortgage to calculate the effective interest rate. We calculated the average interest rate for the duration of the mortgage. This is different from the APRC, which also includes taxes and fees associated with the mortgage, but does a good job of factoring in the benefits of promotional interest rates and weighing the effect of mixed-rate mortgages.

The interest rate data for Spanish mortgages for non-residents is based on anonymized data collected from real mortgage offers that Homevest users have received. 



Remember, applications are assessed on an individual basis.

Explore a step-by-step guide to help you secure a mortgage in Spain as a non-resident, including how to avoid three common mistakes during the application process. 

We are ready to provide you with mortgage offers. 


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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