Spanish Mortgage: Do your financial homework

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Securing a mortgage is often intricate, and obtaining one in Spain can pose additional challenges. Considering a Spanish mortgage for property acquisition? Ensure thorough understanding of loan amounts, your own contribution, interest rates for non-Spaniards (deviating significantly from Idealista’s portrayal!), and all necessary documentation for a successful application.


Conduct a Pre-Check

Imagine lending €3000 to a friend. Would you assess the risk based on their likelihood of repayment? Would you still lend if they are unemployed, paying a monthly rent of €900, and already have a debt of €30,000? Banks evaluate you similarly during a mortgage application.

When applying for a Spanish mortgage, we advise taking a step back to assess your financial situation objectively. Do you have sufficient monthly income to repay the mortgage? Often, you already have an idea yourself.


Criteria Spanish Banks Consider:

-Borrowing a minimum of €40,000.
-Age not exceeding 65 years.
-Your credit risk, i.e., solvency, especially if applying jointly

Curious about your standing? Perform a pre-check with one of our mortgage partners and receive a pre-approval promptly.


Mortgage Rates in Spain

The interest rate a Spanish bank offers depends on your risk profile and financial situation. Beware: online information may tout lower rates, but these typically apply to Spaniards. Non-residents and foreign buyers face interest rate surcharges. When comparing rates, set realistic expectations based on your specific circumstances.


Gather your financial documentation

After the pre-check, Spanish banks, brokers, and intermediaries will request proof, i.e., your financial documentation.

Our advice: collect all these documents in advance to streamline the time between application and a personalized offer from the bank.

Before submitting the mortgage application, it’s crucial to do your financial homework and organize all necessary documents. This includes income proofs, employment verification, credit history, and details of the intended property. Thoroughly prepare for this financial homework, as it plays a key role in a successful mortgage application.

To prepare for gathering these documents, we recommend following the comprehensive list of required financial documentation provided. Keep in mind that some documents take time to obtain, so it’s wise to initiate these steps as early as possible.


List of the documents you need for a Spanish Mortgage:


ID: Passport copy and NIE

Property information:
-Sales agreement
-Nota simple of the property
-Link or PDF of the property’s if nota simple is not yet available

As employed:
-6 last payslips
-3 last tax declarations
-Work contract

As company owner:

-3 last tax declarations
-3 last years company’s account
-Balance sheets (profit and loss)
-Register of the company
-Certificate of shareholders
-Certificate of dividends


As self-employed:
-3 last tax declarations
-3 years of audited accounts


Rental or investment income (If applicable):

-Rental: Tenancy agreements, bank statements showing the rental
-Investment: 6 last bank statements / portfolio


Financial Information:
-Credit reports
-Last 6 months’ bank statements showing income, loans, mortgages, etc.
-Justification of funds to be contributed by the customer to the purchase
-Last 3 mortgage/loan receipts
-Proof of rent paid and tenancy agreement


Spanish mortgage process

One of the greatest advantages of modern service is the ability to apply online without physically being present in the country where you’re buying property. Many banks and brokers in Spain allow online applications. However, the final steps require physical presence in Spain, but this can be combined with the closing and transfer of your property or investment real estate.

Consider the following process:

Pre-approval: Within 1 week, some brokers offer 24-hour pre-approval.
Personal financial study: 3-5 weeks. Note: Having all your financial documentation at hand significantly shortens this process.

Personal offer, the FEIN (week 6): The FEIN includes details like interest rates, loan duration, annual cost percentages, terms for penalty-free early repayment, and other relevant information. You receive this online and can usually sign it online. If you decide to sign an FEIN, it has a validity period. Pay attention to this, as you must complete the purchase before the expiration date. Otherwise, the FEIN needs extension or reissuing, impacting previous arrangements. Send the FEIN to the notary where you make the purchase or let the bank handle it. The notary must receive the bank’s FEIN at least 10 days before formalizing the mortgage on the day of the transfer. If you’re buying in Catalonia, factor in 14 days.

-Signing the acta de transparencia (week 8): This transparency statement ensures you, as a borrower, are fully aware of the terms and risks of the mortgage agreement before it’s concluded. It acts as an intermediate step for consumer protection and is always reviewed and signed physically with the (Spanish) notary. If your notary doesn’t speak English, ask for the (exam) questions in advance from your broker (or email us, and we’ll provide them).
Signing the mortgage deed: On the day of the sale, the loan is reviewed again with you by the notary. Then, you proceed to sign.

Best of luck with your financial homework in preparation for your Spanish mortgage application. Would you like to start today? Send an email to, and we can connect you with various reliable entities for a Spanish mortgage application. Or, perform a pre-check with one of our network partners: Habeno and Idealista.


Disclaimer: Use of Information

Casalunya Real Estate is not a financial institution or mediator. We maintain a strong network of Spanish banks, brokers, and intermediaries for Spanish mortgages. The information on this website/article is intended for general informational purposes and is provided based on our knowledge and experience at the time of publication. We make every effort to ensure that the information is accurate and up-to-date. However, we disclaim all responsibility for any direct or indirect damage arising from the use of this information or any errors or omissions in its content. The use of the provided information is entirely at the reader/user’s own risk. We reserve the right to change the content of this article at any time without prior notice. It is the responsibility of the reader/user to regularly check for any changes. This information does not constitute legal, financial, tax, or professional advice. Always consult a qualified professional for personalized advice on your specific situation. By using this website/article, you agree to this disclaimer and the terms of use of the provided information.

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