Mortgage Loan Spain

Whether you’re relocating, investing, or buying a holiday home, a mortgage loan in Spain can help finance your property. With competitive interest rates, long terms, and options for both residents and non-residents, it’s possible to secure up to 70–80% of the property’s value—if you know what lenders are looking for.

Eligibility and Requirements for a Mortgage in Spain

To qualify for a mortgage loan in Spain, you must meet certain financial and legal criteria. These vary slightly depending on whether you’re a resident or a non-resident, but most banks follow the same core requirements.

Standard mortgage requirements in Spain:

• Valid passport or ID
• NIE number (for foreigners)
• Proof of income (payslips or tax returns)
• Spanish or EU bank account
• Deposit (minimum 20–30%)
• Proof of employment or business activity
• Credit history report (local or international)
• Property valuation (tasación)

Residents vs. Non-residents

Spanish residents can typically borrow up to 80% of the property value. Non-residents are usually limited to 60–70%, and may face stricter documentation and approval checks.

Income and debt ratio

Lenders assess your debt-to-income ratio, often requiring that your total monthly debt (including the new mortgage) doesn’t exceed 30–35% of your net income. Income must be stable and well-documented, especially for self-employed applicants.

Property appraisal

A professional valuation (tasación) is mandatory and determines how much the bank is willing to lend. You’ll often pay for this upfront, and the lender uses the lower of the purchase price or appraised value to calculate the loan.

How to Apply for a House Loan Online in Spain

Applying for a mortgage online in Spain is now easier than ever, especially for non-residents. Most banks and mortgage brokers offer digital pre-approval and document handling before final in-person signing.

Steps to apply online:

• Get pre-approval
• Compare lenders
• Upload documents
• Property valuation
• Receive formal loan offer
• Sign at notary
• Funds are released

Get pre-approval

Start by submitting basic financial information such as your income, existing debts, and savings. Many online platforms offer instant mortgage pre-approval or an estimate within 24–48 hours.

Pre-approval gives you a clear idea of how much you can borrow and strengthens your position when negotiating with sellers or agents.

Compare lenders

Use mortgage comparison tools or work with a broker to find the best interest rates and terms. Focus on the APR (TAE), fees, maximum LTV, and flexibility in repayment.

Non-residents should prioritize lenders that offer services in English and have experience with foreign buyers.

Upload documents

Digitally upload key documents: passport/ID, NIE, payslips, tax returns, bank statements, and employment contract. Self-employed applicants may also need business records and VAT filings.

Most lenders accept scanned PDFs. Ensure all documents are current and clear, as incomplete files can delay the process.

Property valuation

Once you’ve chosen a property, the lender orders a tasación (independent property valuation). This confirms the market value and affects the final loan amount offered.

You’ll usually pay for this upfront. The bank will only lend against the lower of the purchase price or appraised value.

Receive formal loan offer

If everything checks out, the lender issues a formal binding offer (FEIN) with fixed terms: interest rate, total cost, repayment schedule, and legal fees.

You’re legally required to receive this at least 10 days before signing in Spain.

Sign at notary

Final contracts must be signed before a public notary in Spain. If you can’t be present, a power of attorney (POA) can be used to appoint a legal representative.

The notary ensures both parties understand the loan and property terms before proceeding.

Funds are released

After signing, the loan is disbursed directly to the seller or their representative. The property is officially transferred to your name, and mortgage repayments begin as agreed.

How to Apply for Your House Loan at a Traditional Bank in Spain

Applying for a mortgage through a traditional Spanish bank involves more face-to-face interaction and paperwork, but it may give you access to better-negotiated terms—especially if you’re an existing customer.

Steps to apply at a bank:

• Book a meeting
• Present your financial profile
• Submit required documents
• Wait for property valuation
• Receive binding offer
• Sign at notary
• Final payment and ownership transfer

Book a meeting

Start by scheduling an appointment at a bank branch. Some banks allow initial contact online but require in-person meetings for mortgage applications—especially for large loans.

At this meeting, you’ll discuss loan options, available interest rates, and how much the bank is willing to finance.

Present your financial profile

The bank advisor will ask about your income, employment, existing loans, and monthly expenses. This is used to determine your debt-to-income ratio, which must usually stay below 35%.

If you’re self-employed or a non-resident, expect more questions and tighter scrutiny.

Submit required documents

You’ll need to provide ID, NIE, proof of income (payslips or tax filings), employment contracts, bank statements, and any other financial obligations. Everything must be up to date and in Spanish or officially translated.

Some banks may also ask for a copy of the property reservation contract or deposit receipt if you’ve already chosen a home.

Wait for property valuation

Once documents are reviewed, the bank will order a tasación (valuation) by an approved third-party company. This confirms the market value and determines your maximum loan amount.

You’ll receive a copy of the report, and the bank will proceed only if the value meets their lending criteria.

Receive binding offer

If approved, the bank issues a FEIN (binding offer) outlining interest rate, loan amount, APR, fees, and repayment structure. You must receive this at least 10 days before signing the mortgage deed.

Use this time to review terms or negotiate if needed.

Sign at notary

The mortgage deed and purchase contract are signed in person at a notary office in Spain. Both you and a bank representative must be present, unless you’ve arranged a power of attorney.

The notary reads all terms aloud and ensures everything is legally compliant before authorizing the agreement.

Final payment and ownership transfer

After signing, the bank releases the funds directly to the seller or their legal representative. Ownership is transferred, and your repayment schedule begins. The mortgage is registered with the property title in Spain’s land registry.

Example of a Mortgage Loan in Spain

To understand how a typical mortgage works in Spain, here’s a detailed example based on a foreign buyer purchasing a second home on the Costa Blanca.

Loan Detail	Value
Property Price	€250,000
Downpayment (30%)	€75,000
Loan Amount	€175,000
Borrower Type	Non-resident EU citizen
Loan Term	25 years (300 months)
Interest Rate (Fixed)	3.2%
APR (TAE)	3.5%
Monthly Payment	€846.75
Total Interest Paid	€78,025
Total Repayment	€253,025
Valuation Fee	€400
Notary & Registry Fees	€2,000
Early Repayment Option	Yes, with 0.5% fee (first 5 yrs)
Application Channel	Traditional bank

In this example, the buyer pays a 30% downpayment and finances the rest with a 25-year fixed-rate mortgage. The monthly payment remains consistent throughout the term, making budgeting predictable. Additional costs like valuation, notary, and registry fees are common in Spain and typically paid by the buyer.

This setup reflects typical conditions for a non-resident borrower; Spanish residents may access higher LTV ratios and slightly better interest rates.

Interest Examples for a Mortgage Loan in Spain

Mortgage interest rates in Spain vary depending on factors like loan type (fixed or variable), borrower profile, loan-to-value (LTV) ratio, and residency status. Below is a set of example scenarios showing typical rates, terms, and total repayment amounts.

Property Price	Downpayment	Loan Amount	Term	Interest Rate	Monthly Payment	Total Repayment
€150,000	€30,000	€120,000	20 years	3.0% fixed	€665.98	€159,835
€200,000	€40,000	€160,000	25 years	3.2% fixed	€773.58	€232,074
€250,000	€50,000	€200,000	30 years	2.9% variable	€839.62 (avg.)	€302,263 (est.)
€300,000	€90,000	€210,000	25 years	3.4% fixed	€1,050.21	€315,063
€400,000	€120,000	€280,000	30 years	3.1% fixed	€1,195.53	€430,391

These examples assume standard profiles with stable income and good credit. Non-residents may face slightly higher rates or lower LTV limits. Variable-rate loans can fluctuate, so monthly payments and total cost may change over time. Always compare APR (TAE) across lenders to understand the full loan cost.