What is the maximum mortgage in Spain at a Spanish bank?
How much is your maximum funding for a purchase in Spain. You can read here how the amount of financing in Spain through banks is established and how to calculate it yourself!
We are often asked exactly how much you can borrow in Spain from a Spanish bank. Through answering a few crucial questions and try to give you more clarity on this.
How much can I borrow from a Spanish bank?
Unlike in the Netherlands, a 100% mortgage is not possible in Spain. A Spanish resident can get a maximum mortgage of 80%. For a non-resident from aboard, banks will give a maximum mortgage of 70%. This is an absolute max for financing for the Spanish bank. So it is also common for the Spanish bank to only finance 50 or 60%, based on your purchase profile. Pedro's advice is to never assume the maximum.
Where is the maximum funding based on?
The Spanish bank always calculates the mortgage over the lowest value. This is either the purchase price or the property valuation value. Suppose the appraisal value is lower than the purchase price, the Spanish bank will calculate the mortgage over the appraisal value. As a result, your financing may be lower than previously calculated. It is smart to take this into account.
So our advice is to get a valuation done before you buy the property. If you take out a mortgage through a Spanish bank, they will always use a recognised valuer. If you want to engage a valuer yourself, always consult whether the Spanish bank will accept them.
The mortgage amount is set at the lowest value. That is either the purchase price or the appraised value. If you pay more than the appraised value, the bank will not finance this price difference!
How much equity do you need for a Spanish purchase?
The Spanish bank gives a maximum financing of 70% of the lowest value of the property. This means there is at least 30% out of equity required for you rproperty purchase. This amount should be demonstrable on a savings account statement. So, in the case of excess value in NL, it must be in your bank (account) at the time you apply for the mortgage.
Tip: want to use your home surplus value for a purchase in Spain? Then check out our Home equity check!
In addition, don't forget the buyer's costs in Spain when buying a property in Spain. This varies quite a bit based on characteristics (location, plot size, destination, property type and purchase price). Take into account an average of 12% of the purchase price, up to as much as 15%. If you want to know the amount we recommend taking out of equity; then use Pedro's purchase cost calculator!
Note: we often see people using their surplus value from their home in their own country to get the required equity, but you should also bring in savings. Read more about the use of surplus equity value here.
Example of a purchase calculation in Spain
| Type | Amount |
| Purchase price | €250.000 |
| Appraisal value | €235.000 |
| Maximum funding (70% over lowest value) | €164.500 |
| Buyer's Costs (on average 12% of the purchase price) | €30.000 |
| Own equity required | €115.500 |
What determines how much you can borrow in Spain?
Spanish banks have a whole regulation of points and rules that determine how much you can or cannot borrow. So read carefully to which mortgage requirements you need to meet in Spain. Consider the following points, among others:
- The purchase price or appraisal value
- The minimum income requirements
- Your spending limit (DTI) per month
- The prevailing interest rate at that time
- Monthly mortgage charges
- Maximum equity you can contribute
- Your buying profile & income bracket
- The location and type of property you buy
So in Spain, it is always a tailor-made proposal for the bank towards you. Keep this in mind, such that no real estate agent or broker can give you a definitive outcome in advance.
Fortunately though, you can use Pedro's indicative calculation. This will help you make a realistic estimate!
Calculate your maximum mortgage in Spain
Through holapedro, you can perform a customised calculation via AI to find out your maximum financing. We test you on all possible variables and you will receive a sophisticated mortgage simulation. This way, you will know your mortgage options in Spain within 20 minutes!
Or rather first ?
How much can I borrow in Spain?
Want to know more about buying in Spain?
Buying a home in Spain or Portugal with equity
Do you have a decent excess value on your house and want to use it to buy abroad, such as Spain or Portugal? We tell you how and whether it is possible!
