Mortgage in Spain

Settling permanently or temporarily in a new country, especially after retirement, is fast becoming a new culture across the globe. In the second innings of their lives, people are looking forward to exploring different cultures. Consequently, they are now preferring to purchase a house in a foreign land where they can enjoy a relaxed life. Interestingly, Spain has become one of the top choices of people who are 60 or above. 

But the question is, can you get a mortgage loan to buy a property in Spain if you are in the bracket of ‘Senior Citizen’? The short answer is “Yes”. But, before going into the details, let’s discuss why Spain is attracting international retirees from all over the world.  

Why Living In Spain Is A Good Idea?

Spain is famous for its rich culture, heritage, and festivals, spectacular mountain ranges, breath-taking beaches, sumptuous food, magnificent cosmopolitan cities like Madrid, Barcelona, and Valencia, stunning villages, and pleasant weather. 

But apart from these amazing factors, the other reasons why Spain is one of the best places to live are – great quality of life, cheap cost of living, and warm and friendly people. And the best part is, unlike some other European countries, it is relatively easier to purchase your dream house in Spain. Now that’s enough reasons to pack your bags and head to Spain!

Can You Get A Mortgage If You Are 60+?

Yes, you can. In fact, getting a loan for your own accommodation in any part of Spain is not difficult if you meet all the requirements and if you have all the documents with you. Yes, the age factor does come into the picture while deciding about the tenure of the mortgage. The lenders or the banks just want to make sure that you are capable of paying the installments on time. 

But it is also a fact that if you are, say 65 years old, and are still working, or are getting a pension, you will still get the loan approved, but the mortgage duration will not be something like 30 years! Because, under such condition, by the time you would completely repay the entire mortgage amount, you would be 95! 

Therefore, your age will not stop you from getting a mortgage. But yes, it will affect the tenure of the repayment.  

Documents Required

Spain is welcoming the ex-pats with open arms. Spanish banks are offering mortgages of as high as 80% of the total value of the property. If you wish to purchase a second house in Spain, this percentage reduces to approximately 60%. The interest rate is just 3-4%, while the bank’s processing fee is 1-2%.

Before approving the mortgage amount, Spanish banks consider the total value of the property and your ability to repay. Another equally important factor that can make or break your deal is if you have any existing mortgage or not. And if you have, the banks will see if you have the capability to pay the installment for an additional mortgage, or not. 

To process your mortgage request, the banks require the following list of documents to process your mortgage:

  1. Passport Copy
  2. NIE Number
  3. Proof of Employment / Income
  4. Latest Income Tax Return
  5. Credit Score
  6. Agreement with the Seller
  7. Proof that the property tax is paid to date
  8. Details of other mortgages or loans that you may have
  9. Certificate from work authorities with past work history
  10. Records of your current assets
  11. Marriage Certificate or any Prenuptial agreement

So, what are you waiting for? If you meet the above criterion, but you are still confused about the country where you should purchase an accommodation . . . you should seriously think about relocating to Spain.