Mortgage in Spain

Mortgage in Spain

Foreigners can easily buy a dwelling in Spain. There is no need to collect a lot of documents; just show your passport and an income certificate. But usually, the income certificate is just a formality. The banks will take it seriously only if you are a businessman.

Spanish property

Usually, the Spanish people sell bungalows, villas and apartments. Let’s examine each of these housing types separately. Apartments are common flats in a multi-apartment house. However, there are parking lot, swimming pool and small park near every house. We should note that in Spain upper floors are considered better than the lower ones. Bungalow is a building with no more than three floors and multiple entrances. There are also parking lot and swimming pool near every bungalow. Villas are the buildings, designed for single families. They are usually located on the 8 m2 plots. The price of villa depends on its location: the closer to sea or exotic places, the higher is the price.

If you buy the dwelling in Spain, it will allow you to stay in this country 6 months a year. The other six months you must rent this house. Of course, the speed of house recoupment will depend directly on its distance from the resort areas and different attractions (and there are many of them in Spain).

Housing prices in Spain

Villas are the most expensive dwellings in Spain. Bungalow cost less, and apartments are the cheapest type of housing. Pricing depends on the distance of the house from the coast or capital. The most expensive houses are located in the resort areas. Some erroneously assert that the whole coast is an expensive area. Spanish coast is very large. There are many places unfit for bathing, so they can’t be considered the recreational areas. Therefore, the houses there are much cheaper. For example, you can buy the good apartments in the Bay of Biscaya for 100 000 euro. It is caused by the fact that the water here is cold even in summer. Therefore, there are almost no vacationers here, and the houses are cheaper.

The most expensive city of Spain is Madrid. The apartments here cost at least 180 000 euro. However, there are also more expensive apartments here. Of course, they are comfortable, but cost about 600 000 euro.

Conditions of mortgage in Spain

The foreigners have the right to take a mortgage in Spain at 4-5% a year. The loan must be repaid for no more than 20 years. The country’s inhabitants are on more favorable terms. The initial payment for the residents is 20%, while the foreigners must pay 50%. The early repayment fee is 1.5% from the sum the borrower wants to pay off prematurely. Men can получить in Spain if they’re under 60, and women – under 55. Loan certification lasts 20 days. Therefore, you’ll have to get 1 month Schengen visa in advance.