Loans and financing of residential property in Spain

The crisis in Spain has made housing market very attractive to affluent Norwegians , and many go to Spain to find a rental . We’ll see this time on the things of financing, and go a little further into two different options that may be relevant to you when you finance your Spanish property dream.

Now it’s not like it was just a few years back , when banks threw loans for you, and gave you what you wanted in loans to highly overpriced homes. Brokers’ golden age is past , now is the few banks that provide loans and criteria have become much stricter . One should not expect and borrow more than 60-70 % of the purchase price or appraised value . Properties which the banks themselves own often have better terms.

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Banks in Spain has recently also been very ” cautious ” with appraisals of properties . Even if one does a good trade based on the current market , so it is not certain that the fare will be consistent . That is, that it is not by you borrow as much as you want. It may therefore be advisable to calculate a little extra capital when going out shopping .

The differences are not that big compared to what we ‘re used to in Norway in terms of conditions of the mortgage . Spanish banks are a little more carefully about the evidence on wages and income , but in practice it works the same way as an ordinary mortgage. Common to all banks is that they require you to be able to cover current interest and principal. And all the documentation you submit the application , is now being thoroughly checked. As a first contact with the bank , you may want to bring the following documentation : Last two pay slips , transcripts from the equation, the outstanding balance of a possible loan in Norway , as well as an evidence -month installments. Documentation of equity is also nice to be able to show . All income should be documented has eg . Rentals in Norway so this will also be evaluated positively to the bank.

Banks in Spain have significantly higher startup fees than Norwegian banks, but in many cases they have better interest rates , so that in the long run so the differences are not so great.

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Another thing that should also be considered is the interest of currency fluctuations. If you buy in euros and lend in euros , people are more independent of fluctuations. Buyer to pay in euros and the Norwegian kroner so it is possible that the value fluctuates more.

Option 1
Mortgage loans secured by real estate in Norway
If your residence in Norway is highly leveraged , you have the option to take out a mortgage at home in Norway to Spain realize the dream. This may be the best solution for those residing in Norway and perhaps to have a holiday . With this option , you may have the ability to finance 100 percent of the Spanish residence.

If this solution is appropriate for you, you should remember to take the new valuation of the property before your loan application is made ​​. Many have lived in their homes , and have had appraised the house since they moved . The housing market in Norway has risen steadily for many years, and the probability that your property is worth more now are great.

Option 2
Mortgages in Spanish bank secured by the new dwelling
The most common loan form in Spain is a standard annuity loan with fixed monthly installments where the interest percentage is higher in the beginning and less at the end.

If you take up a loan in Spain is the most normal loans in Euro. It is common for loans regulated rentemesig each every 12 months . You can negotiate to different interest rates in the same manner as in Norway , but since it is the Euro , the interest rate linked to Euribor and adjusted in line with this .

You may in the same manner as in Norway binding rate in the example . 3 or 8 years. Remember that you are entitled to deduct your interest in Norway and the loan reduces your wealth.

For more tips and advice about buying and selling property in Spain, visit www.eiendomsmeglerspania.no . There you will be able to ask questions about everything buying and selling property in Spain.




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