YOUR ROADMAP TO SECURING A MORTGAGE IN MALLORCA

So, you've found your dream home. Now, the question is, how are you going to finance it? Will it be a full cash payment or are you considering a mortgage? Nowadays, many homebuyers are opting for mortgages, whether they need the funds or not. It's not hard to see why, given the attractive low-interest rates, the opportunity to diversify investments, and the tax benefits that come with it. A skilled mortgage advisor can be your ally in this journey, helping you secure the most favorable rates and terms, while also simplifying and speeding up the process so you can move into your new home sooner.

INSIDER TIPS FOR SECURING A MORTGAGE IN MALLORCA!

The Start of the Journey

Kickstart your research early to understand what mortgage option suits you best. Remember, the types of mortgages, their terms, conditions, and costs in Spain may differ from those in other countries. Timing is crucial as you'll need to gather various documents to process your application and determine your borrowing capacity. Your journey begins with a conversation with your advisor. They'll help you understand what you want and identify the best mortgage for you. Following this, they'll provide you with an application form and a checklist of documents that all banks require.

The Feasibility Process

Next, your debt-to-income ratio will be calculated, and a property check will be conducted to ensure the property is mortgageable. Once your application is submitted to the banks, they'll conduct a risk assessment, examining your affordability ratio and approving the mortgage subject to the property valuation.

The Bank Formalities

Generally, you can borrow up to 70% of the lesser value between the purchase price and the valuation. However, other terms and conditions are subject to each client's personal circumstances and may vary from bank to bank. A certified surveyor (tasador) will then evaluate the property. If all goes well, the bank will be able to issue the formal offer.

The Final Process

You'll also need to apply for a Spanish identification number (NIE), which your lawyer can help arrange. On the day of completion, the mortgage must be ready, along with sufficient funds to cover various fees and taxes (between 12% and 14% of the purchase price). The completion process is overseen by a notary, and two deeds will be signed - the mortgage deed and the purchase deed.

Seek Professional Guidance

Securing a mortgage is a significant decision influenced by many factors. The points mentioned above are just a few things to consider. For further advice and guidance through the process, don't hesitate to reach out to an expert.