Mortgages for non-resident foreigners

More and more foreigners are choosing to buy a home in our country. If you are among them, here we will explain the characteristics of the mortgage you can opt for.

In general, mortgages for non-resident foreigners are subject to more demanding conditions, because it would be more complicated to deal with a possible delinquency of a non-resident customer in Spain. In fact, there are many financial institutions that do not grant mortgages for foreigners not resident in Spain.

In the event that the bank grants the mortgage to a non-resident foreigner, this type of loan will be subject to more limitations and conditions, such as, for example, less maximum amount to be financed, higher interest, etc.

The way to contract this type of mortgage is usually online and through phone calls. The vast majority of banks that offer them have a specific section on their website with a contact channel for this type of customer.

The repayment term for non-residents is usually 20 years (with a difference of 10 years for residents in the Spanish territory, where the maximum is 30 years).

In Spain, banks usually give 80% of the total purchase price of the appraisal value, and this is reduced to 60% when it comes to a second home, compared to residents abroad. The maximum they could opt for is the maximum established for non-habitual housing and is usually a maximum of 50%. Likewise, the mortgage payment together with the other loans must not exceed 40% of the income.

As for the interest rates that apply to non-residents, they tend to be higher, since these are homes for second residence and the type of mortgage offered is usually at a fixed rate.



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