Whether for work reasons, to increase finances or for vacation reasons, sometimes we need to buy a home outside our country of residence. Although it seems a complicated process, with a good preparation the process to get a mortgage to buy a house abroad can be much simpler than it seems.
In which countries to request a mortgage to buy a house abroad?
In Spain, it is common for residents to seek mortgages to buy a home abroad, especially in Europe, including people with nationality who live abroad and buy homes in this country thinking about spending vacations or a future return.
In any case, the procedures are kept in a series of paperwork and legal requirements of which there is not always knowledge . From the hand of professionals in the area, and once you have seen the right house, you can have access to financing options to easily and safely buy that much desired property.
Where to ask for a mortgage to buy a house abroad?
When purchasing financing for the purchase of the home, it is advisable to have a mortgage loan . This consists of a type of loan where a movable good acts as a guarantee of payment; In addition, banks often require other documentation that is essential to grant the mortgage to buy a home abroad.
A mortgage can be contracted in the buyer’s country of origin, or through a bank based in the country where the acquisition will take place. Experts say that it is convenient to even work with a subsidiary of the trust bank, and this is possible thanks to entities such as Banco Santander have offices in different countries.
Mortgage requirements to buy a home abroad
The requirements to get a mortgage to buy a house abroad usually change depending on each entity or bank, however, the most common are usually:
● Obtain a foreign identification number, or a visa in the country where the acquisition of the good is considered.
● Open a bank account in the destination country.
● Have an employment contract and their respective payrolls obtained previously.
● Have a residence certificate and a tax declaration up to date.
● Preparation of the purchase contract for the sale of the property, or contract of earnest.
● Have a good credit experience, as they may require a credit risk report that proves the solvency held in the country of origin.
Mortgage conditions to buy a house abroad
As for the conditions that mortgages usually have to buy a house abroad; these will depend on each bank and the economic capacity of the applicant house, however most banks usually have very similar conditions.
The maximum amount to be financed generally ranges between 60% and 80% of the price of the transaction value because it is a second house or holiday home.
In the case of residents who live abroad and require a mortgage for a second home, the financing amounts will be the same as each bank has for regular housing. As this data depends on each entity, we recommend you check a mortgage comparator, so you have a clearer idea about it.
In the case , banks offer a maximum repayment term of 20 years for foreigners, and 30 years for residents . The interest rates are usually higher than conventional loans, because it is a second home, and details that can be complicated as insurance, direct debit payments, among others.
What kind of mortgages can you ask to buy a house abroad?
The most common at this point is that when dealing with foreigners, these types of credits are usually classified as fixed mortgages. However, and as we have already tried, citizens living outside this country could have access to variable mortgages, depending on whether they meet the required conditions.
While a mortgage loan in another country may involve more risks for the bank . A good investigation can help you overcome obstacles to buy the house of your dreams, so we help you with respect to the best mortgages that you can access to achieve your goal.