Most Spanish banks, including La Caixa, BBVA, Santander, Popular, Bankinter and others, consider not only their citizens, but also non-residents from other countries as mortgage borrowers. Mortgages in Spain are a reality for Russians, but it will be more difficult to arrange it than in the Russian Federation. Read more about the conditions and features of lending, as well as about the limitations – read below.
What are the requirements of the Spanish banks
Until serious economic crises of 2008 and 2014 it was quite easy for Russians to take a mortgage loan or buy an apartment in Spain. Today, the conditions for issuing secured loans seriously tightened.
Real estate news directly indicates that Spain is a country with a “cheap” and attractive mortgage that is experiencing a construction boom. Therefore, the demand for loans to purchase housing here is high.
Almost all Spanish banks lend to foreigners. The main condition is to meet the requirements. These requirements include:
- the attractiveness of the property (estimated location, year of construction, technical and external condition);
- sufficient solvency (the rule applies: the amount of monthly income should not be less than 3 monthly mortgage payments);
- stable employment (continuous work experience must be at least 2 years);
- compliance with the age framework for the borrower (from 21 to 70 years);
- lump-sum payment of a part of the cost of living space (usually at least 20% of the market price).
All these parameters are carefully analyzed by banking experts, after which the client is announced the final decision on the application.
Important! If the customer has a positive credit history in Spain, then banks are ready to ease the conditions (for example, increase the loan amount or reduce the down payment share).
Mortgage conditions for Russians
For citizens of the Russian Federation and other non-residents, Spanish credit institutions offer attractive conditions for mortgage lending, implying loyalty and favorable interest rates.
Let us consider in more detail what kind of real estate Russians can buy with a mortgage, what is the level of interest, terms and maximum amounts.
With the help of borrowed funds you can buy absolutely any residential property: apartments, small apartments, houses, townhouses, villas. The client here is limited only by the cost of the acquired object and, accordingly, the maximum amount of the loan, since not all banks approve large loan applications.
The market offers a lot of objects with a price of up to 100 thousand euros in the beach areas of the country, and they are in high demand, including for the purchase of a mortgage among Russian citizens.
If the property is located in a prestigious area of Spain and the price tag exceeds 200-300 thousand euros, then the official income of a potential borrower should significantly exceed the amount of monthly payments.
As for commercial real estate, the likelihood of approval of applications by banks for them is significantly lower than for housing. And here it is also required high solvency, which is confirmed by references and other documents.
Interest rates and terms
There are 3 types of mortgage interest rates in Spanish banks:
It is suitable for those borrowers who want stability in payments. Typically, its value is about 3-4% per annum and no disasters in the economy will not change.
- Floating (variable).
Such a rate carries with it some risks, since the interest in different periods can be both decreasing and increasing. Different banks every six months / year can recalculate, taking into account macroeconomic indicators in the country and the world (in most cases the Euribor index). A floating mortgage rate is suitable for borrowers who receive a stable income in euros.
The essence of the mixed rate is a combination of a fixed rate in the first few years of lending and a floating rate in the subsequent period. A mixed percentage is chosen by customers who are ready to pay in advance with the bank.
The official sites of banks in Spain usually indicate the value of 2 rates simultaneously: TIE and TAE. TAE is the effective interest rate that takes into account the loan amount, accrued interest and all additional costs for the client. TIE is a market rate that does not include inflation.
The terms of the mortgage are calculated taking into account several important factors: the age of the borrower and the cost of the purchased property. Most of the proposals provide for a maximum term for issuing a mortgage loan of up to 30 years. In practice, the average value of this parameter is 10-15 years.
Maximum loan amount
Non-residents can expect to receive up to 80% of the estimated value of the acquired property. In the case of low liquidity of housing, the amount of borrowed funds can be reduced to 50% of its price. That is, the borrower will need to make the remaining amount (from 20 to 50% of the cost of housing) from personal funds.
Spanish banks are extremely sensitive to the issue of money laundering through the purchase of real estate, so any operations with loans are carried out only through an account opened with a specific bank. That it will need to transfer the amount of the initial payment.
In some cases, lenders issue up to 100% of the price of the future object of collateral.
Conclusion! The maximum amount of the mortgage will be determined by the creditworthiness of the client and the market price of the purchased object.
What are the mortgage programs and banks
Russians can get a mortgage in almost any Spanish bank, including such major players as Caixa, BBVA, Santander, Popular, Bankinter, Sabadell, Abanka and others. Let us consider in more detail the conditions for obtaining a mortgage loan to non-residents in several of them in more detail.
|Bank||Mortgage program||Amount of borrowed funds||Loan repayment period||Interest rate,% per year|
|BBVA||Hipoteca variable||Fitted individually||Up to 40 years||1st year fixed rate – 1.99;subsequent years – Euribor + 0.99 for or Euribor + 1.25, depending on the loan amount|
|Hipoteca FIJA||Up to 30 years||From 1.85|
|Sabadell||Fixed rate mortgage||Not more than 80% of the cost of housing||Up to 30 years||From 3.45|
|Floating rate mortgage||1.6 during the first year of crediting, then – Euribor + 1.10|
|Caixa||Mortgage with a fixed percentage of 25||From 20 to 25 years||2.5 for bonus products;3.7 for products without bonuses|
|Mortgage with a fixed percentage of 20||Up to 20 years||2.35 – with a maximum bonus;3.55 – without bonuses|
|Mortgage with a fixed percentage of 30||25 to 30 years old||2.95 – with bonuses;4.15 – without bonuses|
As can be seen from the table, Spanish banks offer programs with fixed and floating rates. Depending on the objectives, the borrower can choose for himself the best lending option.
Mortgage registration in Spain may include the following additional payments and expenses:
- commission for issuing a loan (on average, about 1.5% of the amount);
- fee for the evaluation of the property of the bank (about 300 euros);
- purchase of insurance (from 20 euros per month);
- payments in deduction of taxes (taxes in Spain include the state tax on the purchase of real estate (10%) and the tax for processing the transaction);
- the cost of maintaining the object;
- purchase of medical insurance by the borrower (paid one-time before issuing a loan).
All these costs are borne by the client at his own expense.
List of required documents for registration of mortgage
Having made a decision on the purchase of real estate in Spain, the prospective borrower must prepare in advance the following set of documents:
- Valid international passport.
- Certificate of income for the last year and a longer period (with indication of the name of the employer and position held).
- The contract reserve real estate between the seller and the buyer.
- Extract from the bank with information on cash flow for at least the last year (can be made for both Russian and foreign accounts).
- Documents on registration of the company and an extract from the Unified State Register (for business owners).
- Extract from the NBCH about the quality of credit history.
- NIE (non-resident identification number).
Additionally, you may need to write a resume with a summary of the content of all the documents provided.
Attention! All documents must be translated into Spanish and notarized.
Instructions for registration of a mortgage in Spain
The procedure for obtaining a mortgage loan in Spain includes the following steps:
- Collection and preparation of documents.
It is worth doing this long before the search for a particular property, as the design of some papers may be delayed. At the same time, it is necessary to order bank statements, certificates from the employer, an extract from the NBCH, and then transfer them and notarize them.
- Opening an account in a Spanish bank.
Typically, this procedure takes no more than 30 minutes from the time of contacting the bank. Some financial institutions may require proof of employment and income.
- Getting NIE.
The non-resident’s number is already issued in Spain itself upon arrival. To obtain it, you need a passport with a Schengen visa and a stamp about crossing the Spanish border. The expiration date of the passport should not be less than 6 months.
- Property search.
To search for housing, you can contact intermediaries (for example, Russian-speaking agents and agencies) or do it yourself through specialized sites and sites.
- Conclusion of a reserve agreement.
This is a preliminary contract for the purchase of real estate, in which the price of the object and the maximum term of the transaction between the seller and the buyer are specified.
- Submission of a loan application to the bank.
The bank analyzes the submitted documents and information, as well as evaluates the acquired living space. On average, the procedure takes from 5 to 10 working days, after which the solution is announced to the client.
- Account replenishment (in a Spanish bank) in the amount of the established initial payment + the amount of additional expenses.
In the event that the bank makes a positive decision on issuing a mortgage loan to a Russian, the amount of the loan and the amount of the initial payment are announced to him. Additional costs include taxes, registration and notary fees, insurance and other fees.
- Conclusion of a contract with the bank and registration of the transaction.
If all the conditions are met and the commissions are paid, then the parties sign a mortgage agreement and issue a bill of sale. Both documents are registered in the State Register of Spain.
Before signing any documents, it is recommended that you carefully review the proposed conditions and nuances, make preliminary calculations using a mortgage calculator.
- Bank transfer the remaining amount.
After the registration of the property and property rights, the bank will transfer the amount indicated in the contract to the seller. After that, from the set date, the bank will begin monthly debits to pay off the loan debt.
All credit institutions in Spain provide for the possibility of early repayment of the debt, but in most cases, this operation will be paid (about 0.5% of the remaining amount). There are also restrictions on the minimum amount paid as an early loan payment.
The credit policy of most banks in Spain allows a citizen of Russia to take a loan to buy his own house or apartment. You can get a mortgage in Spain at such banks as Caixa, Bankinter, BBVA, Santander, Abanka, Popular, Sabadel, offering programs with a fixed and floating rate. You can get up to 80% of the estimated value of the acquired property for a period of up to 30 years. Bets are directly dependent on the Euribor index and are subject to periodic recalculation.
A Russian citizen who has a consistently high monthly income and is ready to provide a full package of documents, has every chance of getting a mortgage in Spain on preferential terms.
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