How does funding for a new-build home?

A mortgage for a new-build property in Spain

If you want to buy a new-build home in the Netherlands, the builder is paid by the bank from a construction deposit. This is not the case in Spain! This is because many contractors have gone bankrupt or the properties are not registered correctly in the Spanish land register.

Banken finance the newly built house only when it has the appropriate permits such as a Cedula (residential licence). The mortgage is granted the moment the property is completed with the proper permits and properly registered in the Spanish land register.

You pay the first 30% of the purchase price from equity to the contractor. Once the property can be delivered, the mortgage will be provided and you will pay the remaining 70% (possibly through financing through the bank, as the mortgage can also be provided at this time). Read more here new-build finance.