First-time buyer mortgages
Mortgages in Spain for First-Time Buyers
How much a Spanish bank lends a first-time buyer, the cash you still need, and live 2-bed homes a typical mortgage can actually buy in 2026.
What a Spanish Bank Lends
Most first-time buyers we meet arrive with a home-country mortgage in their head. Ninety per cent loans, long terms, income from anywhere. Spain does not work like that, and finding out after you have reserved a flat is expensive.
Yes, foreigners can get a Spanish mortgage, as residents or non-residents. Non-residents usually get 60 to 70% of the property value. Residents can reach 80%. In both cases the bank lends on the lower of the purchase price and its own valuation, and your total debt payments, including the new loan, should stay around 30 to 35% of your net monthly income. Most banks also want the loan repaid by about age 75.
Non-residents
Spanish residents
The Cash You Still Need
The deposit is only half of it. Spanish buying costs are paid in cash on top, and the bank will not lend them. Almost every apartment under €300,000 on our feed is a new build, which means 10% VAT plus stamp duty, not resale transfer tax. For a resale home in the Valencia region, transfer tax dropped to 9% on 1 June 2026, as covered in our note on the cut. Add notary, land registry, lawyer and the bank valuation, and you land around 13% either way.
That is roughly 43% of the price in cash. If the valuation comes in below the price, the gap comes out of your pocket too. This guide explains what to do when that happens. Here is what that €250,000 budget buys today on the southern Costa Blanca and the Mar Menor, where 2-beds are cheapest.
2-bed+ apartments, €150,000 to €250,000, Costa Blanca South and Mar Menor
How Approval Works
Affordability
All debt payments, including the new mortgage, should stay near 30-35% of net monthly income. Banks apply this strictly.
Fixed rate
Same payment for the term. Popular with first-time buyers who want a predictable budget, usually at a higher starting rate.
Variable rate
Euribor plus a fixed bank margin, reviewed every 6 or 12 months. Can start cheaper, and payments move both ways.
Fixed or variable is a budget question, not a fear question. If your income is in pounds, kroner or dollars, the exchange rate can move your real payment more than Euribor does. Fixed vs variable works through it with numbers. Start the paperwork before you reserve. You need an NIE and a Spanish bank account first, and this guide shows how to do both, even from home.
Pre-approval (weeks 1-2)
Send income, tax and ID documents. The bank gives indicative terms and a maximum loan. Do this before you reserve.
Valuation (weeks 2-3)
The bank orders its own valuation. The final loan is based on the lower of price and valuation.
Formal offer (weeks 3-6)
Underwriting finishes and you get the binding offer. By law you must receive it at least 10 days before signing, and the notary explains it to you free of charge.
Signing (weeks 6-8)
You sign the deed and the mortgage at the notary on the same day. Funds go straight to the seller or developer.
What a First Mortgage Buys
On Costa Blanca North the same budget buys less floor space but towns that stay alive in winter. On 9 October the feed had 14 apartments with two or more bedrooms at or under €350,000 in Villajoyosa, Finestrat, Calpe, Dénia, Jávea, La Nucia and El Verger. Most are new builds with a pool.
If you need a third bedroom for family visits, look south. There were 13 three-bed homes at or under €300,000, mostly townhouses in Pilar de la Horadada plus a few apartments in Guardamar and Torrevieja. A 70% loan on €290,000 is €203,000. At an illustrative 3% over 25 years that is about €960 a month, which under the 30-35% rule needs roughly €2,800 to €3,200 of net monthly income with no other big debts.
Costa Blanca North, 2-bed+ apartments up to €350,000
Costa Blanca South and Mar Menor, 3-bed homes up to €300,000
Run Your Own Numbers
Pick one listing from the filters above and put its price through the Mortgage calculator and the Purchase calculator. Then take the result to a bank or broker for pre-approval before you book flights.
For the wider process, read the finance guide, the first-time buyer guide and the costs and taxes guide. Buying off-plan? Make sure your stage payments are protected with a bank guarantee.
Before you reserve
Run one asking price, then get pre-approved
Browse live homes in your budget, then put one real asking price through the Mortgage calculator and the Purchase calculator.
See current propertiesTalk to a local broker
We live and work on Costa Blanca North — Jávea, Dénia and the towns around our office. We are a licensed estate agency, not only a guide: homes on our books, trusted partners for banking, legal, currency and other locations when you need them. Tell us where you are thinking of moving. No property shortlist required. We will help you find a sensible next step.
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