Mortgages for First-Time Buyers
Mortgages in Spain for First-Time Buyers: What You Need to Know
Can foreigners get a mortgage in Spain? Learn how Spanish mortgages work, how much you can borrow, and what first-time buyers need to know.
Can Foreigners Get a Mortgage in Spain?
For many first-time buyers, understanding how mortgages work in Spain is one of the most important — and confusing — parts of the property buying process. Mortgage rules, lending limits, and approval criteria in Spain are very different from those in the UK and many other European countries.
Yes. Foreigners can get a mortgage in Spain, whether they are residents or non-residents. Spanish banks regularly lend to international buyers, particularly in popular regions such as the Costa Blanca, Costa del Sol, and Balearic Islands.
However, the conditions are stricter than in many other countries, especially for non-residents.
Whether you are a resident or non-resident, knowing how Spanish mortgages work before you start viewing properties will help you set a realistic budget and avoid disappointment later.
Mortgage Limits in Spain
Non-Residents
Spanish Residents
What Do Spanish Banks Look At?
Spanish banks take a conservative approach to lending. They will assess:
- Your income and employment status
- Age (mortgage must usually end before age 70–75)
- Existing debts and financial commitments
- Credit history in your home country
- Monthly affordability
Income Requirements
Your total debt repayments (including the new mortgage) must not exceed 30–35% of your net monthly income. This rule is strictly applied.
Fixed-Rate Mortgages
Very popular with first-time buyers because they offer predictable monthly payments and protection against interest rate rises. Loan terms typically range from 20 to 30 years.
Variable-Rate Mortgages
Variable mortgages are linked to the Euribor, plus a bank margin. Monthly payments can go up or down depending on market conditions. While they can be cheaper initially, they carry more risk.
Costs Involved in Getting a Mortgage in Spain
In addition to your deposit, you should budget for:
- Property valuation fee (€300–€600)
- Mortgage arrangement or administration fees (if applicable)
- Notary and registration costs related to the mortgage deed
Recent legal changes mean banks now cover many mortgage-related taxes, but buyers should always confirm costs in advance.
Use our buying costs calculator to estimate your total expenses, and our mortgage calculator to see monthly payments based on different loan amounts.
Documents Required for a Spanish Mortgage
Mortgage Approval Timeline
Mortgage approval can take 4–8 weeks, depending on the bank and complexity of your case. Because of this, mortgage planning should start before signing the private purchase contract.
Pre-approval (Week 1-2)
Submit documents and get initial assessment. Banks provide indicative terms and maximum loan amount.
Property Valuation (Week 2-3)
Bank orders independent valuation. Final loan offer based on lower of purchase price or valuation.
Final Approval (Week 3-6)
Bank completes underwriting and issues formal mortgage offer with terms and conditions.
Signing (Week 6-8)
Sign mortgage deed at notary. Funds released for property completion.
Should You Use a Mortgage Broker?
Many first-time buyers choose to work with a Spanish mortgage broker. Benefits include: access to multiple banks, advice tailored to non-residents, faster processing, and clear explanation of offers. A broker can save time and help secure better terms.
Common Mortgage Mistakes First-Time Buyers Make
Avoid these common issues:
- Assuming you can borrow the same percentage as in your home country
- Applying for a mortgage too late
- Ignoring age limits
- Overestimating affordability
- Not factoring in exchange rate risks
Cash Purchase vs Mortgage — Which Is Better?
Cash Purchase
Mortgage Purchase
There is no single correct answer. The best option depends on your financial goals, residency status, and long-term plans.
Final Thoughts for First-Time Buyers
Getting a mortgage in Spain is entirely possible for first-time buyers — but it requires preparation, realistic expectations, and professional guidance.
Understanding how much you can borrow, what documents are needed, and how long approval takes will help you move forward confidently and avoid last-minute complications.
At Property Investment Spain, we help buyers understand financing options early, so the property buying process remains smooth, transparent, and stress-free.
Ready to Start Your Property Journey?
Explore our comprehensive guides for first-time buyers in Spain. From legal requirements to financing options, we'll help you navigate every step with confidence.
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