Whether you’re looking for a second home, an investment property, or planning to relocate to Spain, understanding the mortgage process, and what is affordable, is key. A Spanish mortgage calculator can help you to navigate the costs and provide an accurate idea of the type of property you can afford.
Why use a Spanish mortgage calculator?
A Spanish mortgage calculator is a useful tool for anyone looking to buy a home or property in Spain.
These useful online calculators help you to estimate your monthly payments, understand the total cost of the loan, and calculate the amount you can borrow based on your income and deposit.
Benefits of a mortgage calculator
A mortgage calculator helps to paint a better picture of what is possible in regards to affordability and available mortgage products.
There are several benefits to using one when exploring mortgage options:
- They estimate monthly payments. Calculators can help you to assess how much you’ll need to pay each month.
- They help to visualise total costs. Spanish mortgage calculators can provide a clear picture of long term costs, including how interest rates, loan duration, and down payments will impact cost.
- They’re useful for comparing offers. It’s possible to compare mortgages from different banks with the interest rates and terms you fill in.
- They’re excellent for budget planning. Calculators will help you to immediately identify whether a property is affordable for you.
Try our free Spanish mortgage calculator
How to use a Spanish mortgage calculator
So how exactly can you use a mortgage calculator? It’s actually fairly straightforward.
For most mortgage calculators you’ll need to enter:
- Property Price - The purchase price of the property you’re considering.
- Deposit/Down Payment - The initial payment you’ll make, typically ranging from 20% to 40% of the property’s total price.
- Loan Term - The period over which you plan to repay the mortgage. This is usually between 10 and 30 years.
- Interest Rate - You’ll often need to choose both the type of product and the rate.
- Property Condition - The condition of the property (whether it is new or second-hand)
After entering these key details, the calculator will estimate your monthly payment, total interest paid, and the total amount of the loan.
It’s important to note that calculators provide estimates. There are other factors that can impact costs, including personal credit profile and residency status.
Learn more about the mortgage process in Spain for non-residents.
How much mortgage can I borrow in Spain?
In Spain, the amount you can borrow for a mortgage often depends on your financial situation, the type of property, and whether you are a resident or non-resident.
Typically, Spanish banks will lend up to 80% of the property’s value for residents whereas non-residents can usually borrow around 60%-70%. This means that many non-residents will need a larger deposit to secure a property in Spain.
Your borrowing capacity also depends on your income and outgoings. A general guideline is that your monthly mortgage payments should not exceed 30%-35% of your monthly income.
Mortgage options in Spain
What are the mortgage options available in Spain?
There are two main types of mortgage rates available in Spain, fixed-rate and variable-rate mortgages.
Fixed-rate mortgages
A fixed-rate mortgage is often seen as a more stable option with a constant interest rate that is carried throughout the loan term. It’s ideal for those who prefer predictability and want to know exactly how much they’ll pay each month.
Advantages
- Consistent monthly payments.
- Protection from interest rate fluctuations.
Disadvantages
- Higher initial rates compared to variable mortgages.
- Can be more expensive if the interest rate falls.
Variable-rate mortgages
Variable-rate mortgages, often tied to the Euribor (European Interbank Offered Rate), fluctuate based on market conditions. This means payments can go up or down over time.
Advantages
- Often lower initial rates.
- They can be more affordable if rates decrease.
Disadvantages
- Payments can increase if interest rates rise.
- Less predictability for long-term budgeting.
- Not always available for non-resident applicants.
Find out more about mortgage rates in Spain
What is the average interest rate for a mortgage in Spain?
Currently, at the end of 2024, the average interest rate for a mortgage in Spain is around 2% to 4% for fixed-rate mortgages and 3% to 4% for variable-rate mortgages.
As it stands these rates are more desirable than those in other areas, particularly in the UK and US, making Spanish mortgages a good option for expats.
How much deposit do you need for a mortgage in Spain?
The deposit or down payment you’ll need for a mortgage in Spain often depends on your residency status.
Non-residents need around 10% more to secure a property, meaning they’re often looking at between 30% and 40% of the total property value.
This is due to the perceived risk of lending to non-residents. Anyone with a “high-risk” credit profile may need to offer a higher deposit to secure a mortgage in Spain.
Spanish mortgage for non-residents
Non-residents can absolutely secure a mortgage in Spain, but the conditions are often more stringent. It’s possible to have your case analysed to see if you’re likely to be able to buy a property.
Here are a few considerations when buying a home in Spain.
- Higher Deposit Requirements - Non-residents usually need a deposit of 30%-40%.
- Interest Rates - Interest rates for non-residents may be slightly higher.
- Income Verification - Spanish banks will require proof of income and financial stability, including tax returns and payslips.
- Life Insurance - Some banks may require non-residents to purchase life insurance as part of the mortgage package.
- Limited Product Availability - Many non-residents will be limited to certain options when exploring mortgage products.
Tips for getting the best mortgage in Spain
How can you use a Spanish mortgage calculator to find a good mortgage product? Here are some tips for evaluating your options.
- Compare offers. Use mortgage calculators to compare products and offers.
- Check the Euribor. If considering a variable-rate mortgage, keep an eye on Euribor trends, as they will impact your payments.
- Get Pre-Approval. This can give you a clear idea of what you can afford and make the buying process smoother when you find a property you like.
- Consult a Mortgage Broker. A broker familiar with the Spanish market can help you navigate options and find the best deal.
Conclusion
A Spanish mortgage calculator is an essential tool for anyone looking to buy a property in Spain. From helping to analyse the best products on the market to providing a better picture of both short and long-term costs. Having the right tools at your disposal can make buying a property in Spain much more simple.