Not everyone is a cash buyer when it comes to buying real estate in Spain. In fact, many foreign buyers are buying property with a mortgage in Mallorca. Some buyers need extra financing, others simply want to take advantage of good interest rates. Buying property with a home loan in Mallorca is very common, and there are a number of mortgage options for all kinds of buyers. Here are some things you need to know and understand before signing a mortgage contract.
Choose to buy property in Mallorca with help from local banks or even international banks. There are many banks which are present in many countries, perhaps even in your home country. For example, banks such as Banco Santander are present in both Spain and UK. Foreign buyers can also explore their options with local mortgage brokers in Mallorca, which offer great services for investors and non-residents looking to buy a holiday home in Mallorca.
One of the most important factors to consider when studying your contract when buying property with a mortgage in Mallorca is the interest rate. Having a low fixed interest rate will provide a good investment, or a sustainable home loan if you are buying a luxury villa in Mallorca. Whereas variable interest rates can seem more attractive right now, your luck might change, so it’s important to figure out all your conditions now, to ensure your interest rate fits your long-term goals.
Spanish residents can receive up to 90% financing when it comes to buying property with a mortgage in Mallorca. Foreign investors and international clients looking to buy a holiday home can receive up to 70% financing as non-residents, and taxes also differ. It is also important to explore taxes when selling property in Mallorca to understand the differences and benefits for each seller. Balearic Properties can guide you through everything when buying real estate in Mallorca.
The basic contract conditions when buying property with a mortgage in Mallorca will affect your monthly repayments. Make sure to analyse and compare all your options before signing a contract. If need be, ask us for advice on lawyers. In particular, check the conditions for your type of interest, mortgage commissions (upon signing mortgage contract, early repayment fees, contract changes, etc.), insurances (life and home), direct debit and credit card requirements.
Percentages depend on the buyer’s profile. However, generally you can expect between 70-90% financing when buying property with a mortgage in Mallorca, and 10-30% as savings to finance your down payment and cover other expenses related to buying property in Mallorca.
Look out for various problematic mortgage clauses when buying real estate in Mallorca with a home loan, pay special attention to:
You will need to study a number of important documents, along with your contract when buying property with a mortgage in Mallorca, these include:
We have seen it all at Balearic Properties. Things that may seem foreign or unfamiliar to you, are very simple and everyday matters for our professional estate agents. Allow us to advise you and help you find your dream home in Mallorca, with a selection of properties including bargain deals and bank repossessions in Mallorca. Balearic Properties is an international associate of Savills, present in over 60 countries around the world, and a leading real estate agency in Mallorca.
Contact Balearic Properties when buying property with a mortgage