Is a Spanish mortgage possible with a Dutch bank?

Is a mortgage for a house in Spain possible with a Dutch bank?

You may wish to finance part of your Spanish property using borrowed funds. The question here is who can you turn to. Is it possible to obtain financing for your Spanish real estate from a Dutch bank such as Rabobank or ABN Amro? In this article, you will find answers to various questions.

Credit crisis of 2008

During the crisis, many Dutch banks had to seize real estate abroad. This proved difficult to accomplish from the Netherlands. It often failed due to poor communication and culture in Spain. From 2011 onwards, it was no longer attractive for Dutch banks to focus on the Spanish housing market. Consequently, many banks decided to stop financing homes in Spain from that point on. Financing for homes in Germany or France is still occasionally provided.

Is it possible to get financing?

So what are the options for financing a home in Spain? What many Dutch people apparently do not know is that, as a non-resident, you can also obtain a mortgage from a Spanish bank. Of course, you are viewed as a foreigner (non-resident) and not treated like a Spaniard. You are unknown to the country and only possess Dutch-language documentation. As a result, (interest) conditions can sometimes turn out differently.

However, favorable financing is certainly possible.

Caution: Do not make an unjustified comparison! On the internet, you often come across terms such as 80% financing or very low interest rates. Think of websites of Spanish banks or Idealista. These are conditions for a Spaniard, not for a Dutch person. Therefore, make sure you are well informed about your options!

Conditions of financing from a Spanish bank

You are always required to contribute equity when purchasing a Spanish property. The Spanish bank provides financing of up to 70% based on the lowest value of the property (purchase price or appraisal value). Given the closing costs of at least 10%, the down payment is always 40% of the purchase price. Furthermore, the bank assesses your financial documentation based on your expenses in relation to your net income.

Easily calculate if you qualify for a mortgage with our DTI financing calculator!

Financing from a Spanish bank is sometimes combined with a modification of the Dutch mortgage. It is common for people to have equity in their homes. The advice is to discuss with a Dutch mortgage advisor whether it is possible to access this equity.

Please note: as soon as your Dutch monthly payments increase due to this and the debt rises, this will also affect your Spanish financing options.

It is therefore wise to seek proper advice. In doubt? Feel free to contact a Spanish mortgage advisor.