Frequently Asked Questions

A mortgage is a long-term loan secured by real estate property. The bank lends you money to buy a home, and you commit to repaying it in monthly installments over a determined period (typically between 15 and 30 years).

Generally, banks finance between 70% and 80% of the property's appraisal value. The exact percentage depends on your financial profile, income, age, and the type of property you're buying.

In addition to the property price, you should consider: notary (approximately €600-900), property registry (€400-650), agency fees (€300-600), appraisal (€250-600), taxes (10% VAT on new builds or 6-10% property transfer tax on resales), and the bank's opening commission (0-2% of the loan).

Fixed mortgages maintain the same interest rate throughout the loan's lifetime, giving you payment stability. Variable mortgages have an interest rate that changes according to a reference index (usually Euribor), so your payments can increase or decrease.

Euribor (Euro InterBank Offered Rate) is the interest rate at which European banks lend money to each other. It's the most common reference index for variable mortgages in Spain. It's reviewed periodically (monthly, quarterly, semi-annually or annually depending on your contract).

A mixed mortgage combines an initial fixed-rate period (typically 5-15 years) followed by a variable-rate period. It offers you stability at the beginning and flexibility afterwards.

Refinancing is transferring your mortgage from one bank to another, maintaining the same outstanding capital and term conditions, but generally with better interest rate or commission terms. The new bank pays your debt to the previous bank.

It's worth refinancing when: you can get a significant interest rate reduction (generally more than 0.5%), they offer to eliminate commissions, or you can improve other conditions like linked products. Consider refinancing costs to calculate if it's profitable.

The main costs are: notary (approximately €600-1000), agency fees (€300-500), and registry (€200-400). Since 2019, the law establishes that these costs are paid by the bank, not the client.

Debt consolidation consists of grouping several debts (personal loans, credit cards, etc.) into a single mortgage. This way you pay a single monthly payment, generally lower than the sum of all previous ones, although over a longer term.

It's advisable when: you have several debts with high interest rates, your payment capacity is compromised, you need to reduce your monthly payment, and you have a property with available equity (meaning the property value is greater than your current mortgage).

The complete process usually takes between 3 and 6 weeks from when you submit your application until signing. This includes: feasibility study (1 week), property appraisal (1-2 weeks), final approval (1-2 weeks), and notary signing.

You'll need: ID/NIE, last 3 payslips or tax returns if you're self-employed, employment history, bank statements from the last 3-6 months, information about other debts or loans, and property documentation (simple note, property tax, habitability certificate).

Yes, you can make partial amortizations or completely cancel your mortgage at any time. For variable mortgages, the maximum commission is 0.25% in the first 5 years and 0.15% thereafter. For fixed mortgages, it's 2% in the first 10 years and 1.5% thereafter.