Financing a home

HOW DO WE WORK FOR YOU!

We are specialists in the purchase and sale of holiday homes in Spain.

We distinguish between:

• a new-build home that you buy "from the construction site", i.e. with a construction time of 12 months on average
• an existing home
• or a newly built home that is turnkey and can therefore be delivered almost immediately.

NEW CONSTRUCTION HOUSE

In this case, in most cases you pay in a number of installments. For example, 10% with the reservation contract, then 30% when signing the purchase deed, 30% on a date agreed in advance in the purchase contract, and the last 30% upon delivery. It is wise to inquire about the payment terms, sometimes we can adjust these for you in consultation with the builder, so that this better suits your personal situation.

AN EXISTING HOME

In this situation you make a deposit of usually 10% and the remainder will be charged upon delivery.

Key ready

In this case, in most cases you pay in two installments, one upon signing the deed of sale and one upon completion. The percentages differ per project developer. You can finance a home in Spain in different ways, here we list a number of options that you can consider.

• You pay from your own resources.
• You take out a mortgage on the house in Spain. In most cases this is possible up to a maximum of 70% of the purchase price. You must then pay the remaining 30% yourself, as well as the buyer's additional costs. You can do this from your own resources, or perhaps you have equity in your home in the Netherlands.
• You buy together with your child(ren) and they become co-owners. This is possible if they contribute money or, for example, if they co-sign for the mortgage.

The Spanish bank

In almost all cases, a Spanish bank takes out a mortgage on an annuity basis. This means that you repay the loan within the agreed term. In most cases, the term will end at the age of 75. This may make it interesting if your child(ren) co-sign (provided they have their own income), as the term of the mortgage may be considerably longer. We are in contact with various banks in Spain where Dutch-speaking employees are happy to explain the options in your situation. If desired, we are happy to help you make the first contact or request a quote. If you would like to receive an overall calculation of your monthly costs, based on a certain mortgage amount, we will be happy to make an overview for you.

Important to know

A number of things are important to know: A Spanish mortgage is only provided upon completion. If you finance 70% and your payment terms would be 40-30-30 (see the example under point a.), you must first pay the 40 and 30% yourself and you will only have access to the 70% mortgage upon completion. . In that case, we can often negotiate payment terms with the construction companies that better suit your personal situation. A Spanish bank will want to value your home itself when it is (almost) ready. This means: if you want to ask more than one bank for a mortgage quote, you will have to pay for the valuation each time. An indication of the rates and monthly costs can be given without an appraisal. The rates and term of the mortgage depend on many factors, almost all of which have to do with the level of 'risk':

• The percentage of the purchase price that you want to borrow
• your income and asset situation
• your age **
• The question of whether or not you take out delivery insurance