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.
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.
Yes, non-EU citizens can apply for financing in Spain.
While the process is more complex than for residents, Spain welcomes foreign investments.
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.
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.
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:
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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Lenders consider the applicants' combined income, which may increase the borrowing amount and the chances of approval. Continue reading to discover everything you need to know when applying for a Spanish mortgage with your partner.
Whether planning to retire, invest in a holiday home, or move to Spain for good, having all the essential information and guidelines is crucial for a smooth mortgage application. Read on to discover the mortgage document requirements in Spain for non-residents.
Santander is a favorable choice for properties valued under 100,000 EUR. On the other hand, Sabadell offers more competitive interest rates, and the application process is simpler and faster. But when comparing offers per se, Homevest could be your best choice to access competitive rates in Spain without fees. Continue reading for a comparative analysis of a mortgage from Santander vs. Sabadell.
Purchasing a holiday home in Spain provides you with a delightful vacation spot, an opportunity to earn rental income, and the potential for property value appreciation, all while enjoying the country's favorable weather and vibrant culture. Explore our guide for the best places, prices, and considerations for non-residents purchasing property.
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