Consider using a mortgage broker as an alternative to negotiating mortgage rates
Consider using a mortgage broker as an alternative to negotiating mortgage rates

Can you negotiate your mortgage rates in Spain when applying from abroad?

Negotiation involves more than just the interest rate. It also includes the overall terms of the mortgage, such as the repayment period, associated fees, and any penalties.

Delia Mihuț
Written by: Delia Mihuț
Published at 2024-01-03
Last updated on 2024-06-11
Readtime 3 minutes

In Spain, it's common practice to negotiate your mortgage rates when applying for financing. But is it possible if you are a non-resident applying from abroad?

We'll cover everything you need to know in this handy guide. We'll discuss essential tips and even seek expert advice to give you a clear picture.

If you prefer having someone negotiate on your behalf, consider checking out Homevest. They will handle the whole process and ensure that banks compete to offer you the best deal.

Reasons for negotiating your mortgage rates in Spain

There are several reasons to negotiate your mortgage rates in Spain, including:

  • cost savings over the life of the mortgage
  • long-term benefits such as reduced monthly payments and financial stability
  • a lower interest rate can help mitigate the risks associated with fluctuating exchange rates, especially if your income is not in euros

What should you know about negotiating mortgage rates in Spain?

In Spain’s competitive lending market, banks are open to negotiate to attract qualified borrowers. If you have a strong financial profile, including a high credit score, stable income, and a favorable debt-to-income ratio, you're in a better position to negotiate favorable mortgage rates.

"Understanding two key elements is crucial in negotiations: first, identifying what's negotiable in an offer, and second, recognizing the power it gives us. In a mortgage deal, various aspects are open for negotiation, such as the arrangement fee, interest rates, and bundled products. Effective negotiation involves addressing multiple aspects simultaneously. For instance, banks may promote third-party products, like insurance and accounts, allowing us to leverage this to secure lower interest rates as a condition.

We should also need to be aware of our bargaining strength, which can be influenced by several factors. Keep in mind that the higher the acquisition price, the more incentive there is to close the deal”, says Samuel López, Mortgage Broker.

How do you negotiate mortgage rates as a non-resident applying for a Spanish mortgage?

Negotiating your mortgage rates in Spain can lead to significant savings over the loan's duration. To successfully negotiate and be satisfied with your mortgage, here’s what you need to have in mind:

1/ Understand your needs and financial situation 

Having a clear understanding of your financial needs and ensuring you meet the banks' criteria for a qualified borrower can make it easier to negotiate favorable terms.

2/ Get quotes from multiple lenders

Start by determining the type of mortgage you need, then request quotes from various lenders. Having a list of the best Spanish mortgages for non-residents will provide you with insights into the various options currently available in the market.

It may be a good opportunity to work closely with a mortgage broker. Usually, they have connections with multiple lenders and can facilitate introductions to suitable banks.

3/ Compare costs across lenders

Fees can vary between lenders. Carefully examine each offer, even those that seem similar initially. 

A key tool for comparison is the annual percentage rate (APR) of each loan estimate. The APR, which is usually higher than the interest rate, reflects the total cost of the loan, including fees, over its lifetime.

4/ Negotiate terms and conditions

Now that you have more options on your table, you can start narrowing your choices. If you prefer a particular bank, now is the time to negotiate the mortgage rates. 

Once you’ve reached an agreement, ensure all negotiated terms are clearly stated in the mortgage offer.

Homevest negotiates on your behalf the best deal

Consider using a mortgage broker as an alternative to negotiating mortgage rates on your own. Homevest can enhance your mortgage experience by negotiating the best deal on your behalf

When you opt for a dedicated mortgage broker like Homevest, your mortgage application will be reviewed, submitted to various lenders, and you will receive mortgage offers.

Homevest will assist you in reviewing these offers and negotiating with the banks to meet your specific needs. You'll benefit from priority service from the banks, ensuring you secure your mortgage in time for the property signing.

This was the case with Stefan, where we helped the customer save almost 3,000 EUR by negotiating a reduced commitment fee. Not to mention the competitive interest rate margin of 0.95%, which will contribute to long-term savings for the client. Continue reading to discover his story of investing in Spain from Germany.  


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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