Spain's average mortgage rate of 5.5% is lower than Canada's
Spain's average mortgage rate of 5.5% is lower than Canada's

Mortgage in Spain as a Canadian citizen. What are your options?

Using a mortgage broker may lead to favorable deals, given their access to multiple lenders and a broader range of loan products than a single bank. Learn key requirements when applying for a mortgage in Spain as a Canadian citizen. Explore how Homevest helps compare international mortgage offers.

Delia Mihuț
Written by: Delia Mihuț
Published at 2023-11-24
Last updated on 2024-06-11
Readtime 7 minutes

Dreaming of owning a property in Spain? 

You’re not the only one. Many Canadians do, yet they often ponder the practicality of getting a mortgage there. 

In this article, we dive into what Canadians need to secure a mortgage in Spain.

So, whether you're eyeing a vacation retreat or a new home under the Spanish sun, let's discover how to make your property aspirations in Spain come true.

Key takeaways

  • LTV ratio for non-residents is lower, meaning Canadians can borrow a smaller percentage of the property’s value compared to Spanish residents
  • Applying with a partner may ease mortgage acquisition due to combined income
  • The NIE number is issued by the Spanish authorities and is required for a Spanish mortgage
  • Homevest simplifies the mortgage application process for non-residents and negotiates the best offer from the banks

Is it possible for a non-EU citizen to apply for a mortgage in Spain?

Yes, non-EU citizens can apply for financing in Spain. 

While the process is more complex than for residents, Spain welcomes foreign investments.

What are the rules for Canadians applying for a mortgage in Spain?

Banks prefer to offer loans to clients with stable incomes and who do not pose a risk in repaying the money. For this reason, applicants need to meet a series of criteria, whether they are EU citizens or not. 

Generally, if you have a substantial down payment and high income, it will be easier to access a loan.

What deposit do you need to buy a property in Spain from Canada?

As a non-resident, you must pay a larger down payment, usually 30% of the property's value. 

Also, keep in mind the related taxes, which are usually around 4-11% but can vary depending on the property's location.

What mortgage options are available in Spain for Canadian buyers?

Canadian buyers looking to purchase property in Spain have a variety of choices. 

Leading Spanish banks like UCI, Sabadell, Santander, Bankinter, Caixa, and Cajasur offer mortgage options tailored to Canadians.

Let’s see a comparison of the key features of these top six Spanish banks:

Best for
Best for
renovation financing
a grace period of up to 12 months, where you only pay interest until completion
higher interest rates
Best for
competitive rates and favorable terms
reduced mortgage installments by depositing your salary into a Sabadell account and subscribing to the bank's insurance policies
the maximum LTV ratio is 70%, meaning a larger down payment may be required
Best for
buying a property under 100,000 EUR
loan from 100,000 to 1,000,000 EUR, catering to diverse customer financing requirements with its flexibility
expensive offers
Best for
variable interest rates offers

complete remote banking services that stay accessible, even when you're not in Spain


Bankinter may not provide the most competitive rates in certain loan types, especially for long-term mortgages
Best for
buying a property in South of Spain 
you can borrow up to 1,000,000 EUR
income from rentals is not considered in the income ratio calculation
Best for
loan of up to 2,900,000
appealing fixed-term deals with rates as low as 3.06% for home insurance and security service bundles
in the financial assessment, only 50% of rental income is factored in

What are the current mortgage rates in Spain for non-residents?

As of March, the average mortgage interest rate for non-residents in Spain dropped to 4.25%, a slight drop from the previous month's 4.27%. The fixed rate averaged 4.25%, while the variable rate was higher at 5.60%.

Discover 2024's mortgage rates for non-residents in Spain with Homevest and find the best deals for your financial situation. 

Homevest matches you with top Spanish banks, negotiating on your behalf to secure the most favorable terms. This aims to simplify the intricate process of obtaining a mortgage in a foreign country by centralizing resources in a single and convenient location. 

How do you apply for a mortgage in Spain from Canada?

If you've found your ideal property, it's time to assemble your mortgage file. 

A valuable resource that can save you time is Homevest, a digital platform that centralizes your mortgage application in one place. With Homevest, you can easily request and compare mortgage offers from top Spanish banks, without the hassle of repeatedly uploading the same documents for each new request.

Applying for a mortgage in Spain from Canada involves a structured process. Here’s a step-by-step guide:

1. Request your NIE number

The Foreigner Identity Number (NIE) is crucial for obtaining a mortgage and purchasing property in Spain. You can get it from the Spanish Consulate in Canada by paying a tax and submitting your information.

2. Centralize your documents

Ensure you have your T4 form ready, as it’s essential for evaluating the credit offer. Banks also require your Credit Report for initial assessment. You can obtain this from Experian and Equifax. 

It's mandatory to include your national identification documents, proof of employment and payslips, bank statements, and proof of deposit in your application file. Check out a mortgage documents checklist to be sure you don't miss anything.

3. Get your initial offer

Once the banks complete their assessment, they will provide a simulation loan to help you understand how much you can borrow and what your monthly installments would look like. 

Keep in mind that this is not the official offer, and you need to accept it before the bank proceeds with the formal procedures.

4. Appraise the property

The next step is to incorporate everything for the final assessment, including a property appraisal (tasacion). This can be done by the bank of your choice. 

5. Receive the FEIN followed by the formal offer

The FEIN (European Standardized Information Sheet) details your mortgage terms, including interest rates and fees. Post-signing, a 14-day cooling-off period is mandatory before finalizing the mortgage at a notary.

6. Signing the mortgage and becoming the owner of the property

In the final meeting, you'll sign off on the mortgage, handle the fees, and then the bank will transfer payment to the seller. 

After these steps are completed, the property will officially be yours.


Frequently asked questions

1. Do I need to open a Spanish bank account to get a mortgage?

Yes, opening a Spanish bank account is necessary to facilitate the property-buying process with a mortgage. While opening an account with the lender providing the mortgage is not mandatory, keep in mind that doing so could offer you some benefits.

2. How long does it take to get a mortgage in Spain as a Canadian citizen?

Securing pre-approval for a mortgage involves a two-week timeline, from submitting your application to receiving a formal offer.

Following this initial offer, there are additional steps to consider. Read more to understand the timeline of the entire process.

3. Can Canadian non-residents have a co-applicant for a mortgage loan?

Yes, Canadian non-residents can apply for a Spanish mortgage with a co-applicant. It's worth noting that lenders prefer married couples because of the shared economy.

4. Should I use a mortgage broker to help me access a Spanish mortgage from abroad?

Using a mortgage broker may lead to favorable deals, given their access to multiple lenders and a broader range of loan products than a single bank. Explore the top 10 mortgage brokers for buying property in Spain and find the one that suits your needs.

Resources to have in mind
  1. Find the nearest Spanish Consulate in Canada
  2. Download your Experian Credit Report for free
  3. Request the appraisal of your property

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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