What can you expect in 2023?
Investing in real estate abroad often requires taking out a mortgage loan. We often ask ourselves whether a foreigner can apply for a mortgage loan in Spain. Yes, getting a loan, provided certain conditions are met, is usually not a problem. The set of documents required by the bank is exactly the same in Poland and Spain. The only difference is the need to translate the documentation into Spanish.
Most banks do not impose mortgage restrictions based on nationality, although it is worth knowing that the bank may require a higher down payment from non-residents. Residents in Spain can borrow up to 80 percent. appraised value of the property, while non-residents borrow on average 60 to 70 percent. As usual, everything depends on the client’s financial situation, the type of mortgage loan and the offer of a given bank. It is also important that Spanish banks do not finance investment costs, which can range from 10 to 15 percent. transaction value.
What will be the prospects for mortgage loans in 2023?
While mortgage interest rates have risen significantly in nominal terms, reaching their highest level in about a decade, in real terms, after adjusting for inflation, they remain negative and are likely to remain at this level until mid-2024.
