Consultation MORTGAGES/LOANS.
Are you considering acquiring a property in Spain, for example as a second home, but you still have many questions and are not sure where and how exactly to start?
My goal is to accompany you as an international client and to assist you with financing.
In the following, I will clearly and simply explain all the steps necessary to acquire a property in Spain, and I hope to be able to help you with each of these steps, making the acquisition a little ‘easier’
Can I sign a mortgage contract if my country of residence has a different national currency than the Euro?
Yes, the choice of mortgage loan depends on the currency in which you receive the income with which you will pay off the mortgage:
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If it is in Euros, you will receive a mortgage with a fixed interest rate.
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If it is in GBP, USD, CAD, CHF, NOK, SEK, or DKK, you have the choice between:
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A mortgage with a fixed interest rate in your own national currency.
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A convertible Euro loan with variable or fixed interest:
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The monthly rate is to be paid in Euros, and you have the opportunity to request a conversion to your own national currency once during the entire term of the mortgage. In addition to the seven currencies listed above, Spanish banks also offer a convertible mortgage in Euros with a variable or fixed interest rate for the other national currencies present in the European Union: BGN, CZK, HUF, PLN, and RON.
Please note that in the event of a conversion, the exchange rate used will be the one published by the European Central Bank as valid for the day the conversion takes place. The costs of such a mortgage can increase to the extent that exchange rate fluctuations lead to a devaluation of this currency compared to the Euro. On the other hand, an exchange rate fluctuation that leads to an appreciation of this currency compared to the Euro will result in a reduction of the mortgage costs.
First things first:
What is your budget?
First, you need to get clarity about your actual budget so that you can then determine how much money you can spend on the property. It is possible to get financing for up to 70% of the purchase price. You must contribute the remaining 30%, plus an additional 12% - 15% of the property value for the payment of taxes such as IVA [Spanish VAT] or ITP (property transfer tax), as well as the other costs associated with the purchase. In total, you should have personal funds available in the amount of 42% to 45% of the property value.
Are you wondering what you will have to pay each month?
To calculate how high your monthly burden will be, it is necessary to know the price of the property you want to acquire. Based on the price of the property, you then choose how much you want to finance through the mortgage. Keep in mind that as a foreigner, when acquiring a property intended as a second home in Spain, you can usually only finance 50-60% of it. You must also choose a term, meaning the period (in how many years) you want to repay the mortgage.
The checklist of necessary steps and formalities to be completed:
I go through all the necessary points in detail with my clients.
MAKE CONTACT
O. Schlolaut
real estate agent
C/Valle Llano Del Perro 4,
5649 Caldereta (Las Palmas)
Fuerteventura
Spain
+34 608 360 694 mobile
+34 828 900 571 office