The company ‘Banus Group’ offers the help of getting you a mortgage loan in Spain. At the moment, thanks to the development of the mortgage lending system, it is quite easy for a foreign citizen to get a mortgage loan.
In order to get a mortgage loan in Spain, it is required to present to the bank a valid passport and the necessary documents, translated into the Spanish or English language.
Today, a very comfortable mortgage credit lending system has been formed in Spain: 60% – 70% of the property value is granted by the bank, for a period of 30 years, under 2.0-3.0% per annum.
The loan is issued within 15-20 days (with an estimate of the real estate by a specialist – the tasador, invited by the bank).
The following documents should be provided when taking a mortgage loan in a Spanish bank:
- A valid passport
- Income statement. A certificate of employment indicating the position, length of service and salary (preferably from 3500 euro). Monthly mortgage payment should not exceed 30% of the borrowers income or of all adult members of the family;
- Certificate from the bank stating the remaining account balance and a list of all incoming and outgoing transactions in the account for the past six months.
- Form PIT-2
- Notarially certified copy of the existing ownership rights of the real estate (apartments, houses, land plots)
As in the case of sale, when getting a mortgage an official contract is issued (Escritura de prestamo hipotecario), which is signed in the presence of a Spanish notary at the same time with the sale contract, and is then registered in the state register of property.
Expenses related to the processing of credit:
- Cost estimate. An evaluation is needed to determine the current market value of the property;
- The cost of the Simple Note (Nota Simple) from the state Register of Property (Registro de Propiedad) on the rights of the current owner, indicating the debts of the given property, its owner and other characteristics;
- Notary fees;
- Registration of the notary act. The registration of the notary act in the trade register;
- Notary deed Tax; confirming the mortgage
- The bank commission services for the opening and maintenance of the account (1.0-1.5% from the credit sum);
- Insurance (property and life insurance)
- Mostly important aspects regarding the payout of the credit are the following:
- The duration of the loan, meaning the number of years, during which the credit is returned – it is necessary to keep in mind that the longer the time, the less the monthly installments (quotas), but ultimately a large sum is paid due to the interests;
- The frequency of cash contribution payout, meaning the intervals between credit payout – the most common is the monthly (one payment receipt of the quota per month), but the payments can be made at the intervals which you agree upon with the bank;
- The size of the quota – the size of the quota is determined, first of all with part of the loan capital, which is paid off, and secondly, by the interests, which are paid off for the whole sum of the credit.
- Finally, we need to explore the possibility of early repayment. This refers to the ability to repay the loan before the prescribed period expires. In this case, you should ask your bank to include the possibility of a separate point in the notary act and agree on the commission percentage, which the bank will take for the given operation. Since the year 1994, a maximum limit of commission percentage is established for a mortgage loan by the law, with a variable interest rate that does not exceed 1% from the earlier repaid amount. For mortgage loans with a fixed interest rate there is no official limit, however, it is usually from 2 to 4% of the amount repaid earlier.