Financing & Mortgages: Benahavís & Costa del Sol

Who Can Borrow & Typical LTVs

• Spanish residents: banks commonly offer up to 70–80% LTV of valuation (or purchase price if lower).
• Non-residents: typically 60–70% LTV depending on profile, income currency and country of residence.
• Debt-to-income (DTI): total debt payments (including the new mortgage) usually should not exceed ~30–35% of net monthly income.
• Valuation basis: lending is on the lower of the bank valuation (tasación) or the agreed price.

Rates, Terms & Products

• Variable rate: benchmarked to Euribor + margin.
• Fixed rate: stable repayments for 5–30 years; early-repayment fees may apply.
• Mixed/hybrid: fixed for an initial period (e.g., 3–10 years) then variable.
• Terms: up to 25–30 years (often capped by age at maturity).
• Life & home insurance: sometimes bundled; you can often source independently but it may affect pricing.

Note: exact pricing moves with markets; we’ll introduce a broker/bank to quote your scenario.

Documents Checklist

• Passport(s) and NIE (or NIE application proof).
• Last 3–6 months’ payslips (employees) or tax returns/accounts (self-employed).
• Last 6–12 months’ bank statements (income & savings).
• Existing credit/mortgage statements (if any).
• Employer letter or contracts / client invoices (as applicable).
• Proof of deposit funds & source of funds (AML).
• Property details once chosen: reservation, purchase price, community fees estimate.

Process & Timeline

1. Indicative quote / pre-assessment: share documents for affordability check.
2. Formal application: KYC/AML, credit assessment, preliminary approval.
3. Valuation (tasación): bank orders an independent valuation.
4. Final approval & offer: bank issues terms; you review cooling-off documents.
5. Signing at notary: mortgage deed signs alongside/comparable to purchase.

Typical timing: 3–6 weeks depending on documents and valuation scheduling.

Bank Fees & Purchase Costs

• Arrangement fee: often 0.5–1.0% of loan amount (varies).
• Valuation fee: payable upfront to the valuer.
• Insurance: home (mandatory); life insurance optional/negotiable.
• Notary & registry: payable on deeds; part may be assumed by bank under current rules.
• Purchase taxes: see our Purchase Costs Guide and Taxes When Buying & Owning.

Currency, Transfers & FX

• Consider setting FX rates in advance for deposits and completion funds.
• Use named client accounts and verify beneficiary details with your lawyer before sending funds.
• Allow time for compliance checks on larger transfers.

Practical Tips

• Start mortgage pre-approval early — it strengthens offers and clarifies budget.
• If buying off-plan, confirm bank guarantees for every staged payment.
• Avoid currency surprises — coordinate timing of transfers with your lawyer and bank.
• Ask for total cost comparisons (APR/TAE) when comparing banks.

FAQs

• Can I get a mortgage as a non-resident? Yes, typically up to 60–70% LTV if income and credit quality meet bank criteria.
• Can I sign if I’m abroad? Yes — by Power of Attorney arranged via your lawyer.
• Do I need a Spanish bank account? Usually yes, for repayments, utilities and local taxes.
• Is a survey required? Not mandatory in Spain, but private technical surveys are available and recommended for older properties.