Mortgage cost

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We have noted an increase of clients who wish to purchase a Spanish property with the help of a mortgage from the bank. Therefore, I think it is convenient to give you some information about the cost involved to get a mortgage as some clients were not aware of them.

We always think that to purchase a property the costs involve is around 10%. This amount will increase if you want a mortgage. This costs could go up to 3 -4% of the money borrowed. In summary, you have to take into account the following associated expenses involve to get a mortgage:

  • Valuation.- When you apply for a mortgage, the bank will ask for your financial documentation to study your economic solvency. If they approve it, then the property you want to purchase needs to be valued prior to approve the mortgage and therefore the bank will ask  you for an amount of money to pay the valuer. This amount could be from 300 to 500 euros depending of the value of the property.
  • Notary and Registry fees.- Beside the title deeds, the mortgage is signed as well before the notary public in a deed that will need to be register at the land registry. The amount of both professional will depend on the money borrowed but an approximate cost could be around 1- 1,5% of the mortgage amount.
  • Tax (Stamp Duty).- There are tax to pay for  mortgage as the purchase deeds. The tax to pay is 1,5% of the mortgage liability (money borrowed plus interest and costs).
  • Bank costs.- The bank will charge as well open commission (which is between 0,5-1% of the money borrowed), the house insurance and life insurance policy to cover the mortgage amount that are always connected to the mortgage process.

 

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