Cash buyers opt for a mortgage after all.

Over the past few years, at Spaanse Hypotheek, we have had the privilege of helping many people secure a mortgage with a Spanish bank. This group included a striking number of cash buyers. They still preferred a mortgage with a Spanish bank. Since the start of the coronavirus crisis in 2020, the number of people financing their purchase with a mortgage rather than their own funds has only increased even more rapidly. Strange? We don't think so.


The low interest rates make financing attractive in the first place. A mortgage interest rate starting at the Euribor rate + 1.59% already convinces many people to take out a mortgage. After all, if you can generate a better return elsewhere with your own capital, why invest all your equity at once in a Spanish property?


Advantage of an investment in Spanish real estate

Another important advantage of a mortgage is low repayment. Currently, the following rules apply to this at most banks:

  • First 10 years: 2% penalty on fixed interest rate
  • After the first 10 years: 1.5% penalty on fixed interest rate
  • First 3 years: 0.25% penalty on variable interest rate
  • 0% penalty after the first 3 years on variable interest rates


If you have a variable-rate mortgage, you will pay €25 in fees for an extra repayment of €10,000 in the first year. Taking out a mortgage for a few years can therefore have its advantages. Good to know: Although most banks apply these penalties, Spaanse Hypotheek works exclusively with banks that allow (partially) penalty-free repayment.


Also bear in mind that refinancing is almost impossible in Spain. Banks only provide financing at the time of purchase. It is therefore important to carefully consider your choice of investing or taking out a mortgage at the time of purchase.

Interested in your maximum mortgage amount?

Are you an investor or real estate investor and curious about your financing options? At Spaanse Hypotheek, you can easily calculate your maximum mortgage financing.


Within one working day, you will have a clear understanding of what you can invest in Spanish real estate. Being prepared for your trip is half the battle!


Request the mortgage report via the link below and receive a comprehensive mortgage offer within one business day!