Fixed rate
When you want the same instalment for the whole life of the loan and no surprises.
Worth noting
The starting rate is usually higher than a variable one at the same moment.
Purchase financing
How buying a property in Spain gets financed, from the pre-study to signing before the notary.
In four points
- Secured by a mortgage on the property purchased
- The amount is based on the lower of price and appraisal
- Term and rate depend on your profile, not only on the asset
- Signed before a notary on the same day as the purchase
01What it is
What purchase financing is
It is a loan secured by a mortgage on the property you are buying. The lender assesses two things at once: your ability to repay and the asset left as security. The amount, the term and the rate come out of that combination.
How it works, step by step
Four stages. The second one decides the outcome: a well-built file is approved sooner and on better terms.
Finding the property
Defining the mandate
Area, asset type, budget, and what is non-negotiable as opposed to merely desirable.
Search and screening
We comb portals, our contact network and assets that are not listed, and discard whatever does not fit.
Viewings and analysis
We visit the shortlist and check condition, encumbrances and registry status before you make an offer.
Negotiation and closing
We negotiate price and terms, and coordinate the financing so both timelines line up.
Raising the financing
Feasibility pre-study
We review amount, profile and type of deal before you move a single document. No cost, and no lender contacted yet.
File and appraisal
We gather the paperwork in the order each lender asks for it and arrange the official appraisal of the property.
Parallel negotiation
We present your case to several lenders at once and compare rate, term, fees and tied products.
Binding offer and signing
We go through the binding offer with you, respect the reflection period and coordinate the signing.
The signing
Deed and loan are signed the same day, before the same notary.
The delicate point is the deposit contract: it is signed on the upper lane and commits money before the lower one is resolved. That is why the pre-study comes first, and why the deadline in that contract is negotiated knowing how long the lender takes.
Which type fits your purchase
None is better than the others: it depends on how long you expect to keep the loan.
Variable rate
When you expect to repay early or you accept the movement of the reference index.
Worth noting
The instalment is reviewed periodically and can rise as easily as it falls.
Mixed rate
When you want stability for the first years and flexibility after that.
Worth noting
Read closely which conditions apply on the day the tranche changes.
04Personal shopper
What a property personal shopper is
It is whoever searches for and negotiates the property on the buyer's behalf. The difference from a traditional agency lies in who gives the mandate: the agency works for the seller, the personal shopper works for the buyer.
What we need to start
The more specific the mandate, the shorter the search. This is what we define in the first conversation.
- Target area or areas and type of asset
- Maximum budget and down payment available
- Intended use: home, rental or resale
- The timeline you work to and what is non-negotiable
Who represents whom
Before signing anything, it is worth knowing which side of the table each party is on.
| Route | When it fits | Worth noting |
|---|---|---|
| Searching on your own | When you know the area well and have time to view and compare. | The real cost is your time, and the market information sits with the other party. |
| The seller's agency | When you have already found the specific property you want to buy. | Its mandate is to sell that asset at the best price for whoever is selling it. |
| Personal shopper | When you are buying away from your area, short on time, or to investment criteria. | Agree in writing the scope of the mandate and how it is paid for. |
05Requirements
What you will be asked for
The lender first looks at whether you can repay, and then at the asset backing the deal. We prepare and submit the file for you.
Lending Criteria & Requirements- Available down payment with a documented source of funds
- Recurring income and a sustainable debt-to-income ratio
- Official appraisal of the property and its registry status
- A separate provision for purchase taxes and costs
Mistakes that slow it down or make it costlier
The ones we see most, and every one of them is avoidable before anything is signed.
- Signing the deposit contract without a feasibility pre-study behind it: if financing falls through, the deposit is at risk.
- Taking the case to a single lender and having no alternative when it answers late or badly.
- Sizing the down payment without setting aside the purchase taxes and costs, which the mortgage does not cover.
Frequently asked
How much of the price can be financed?
It depends on the profile and the intended use of the property. The benchmark is the lower of purchase price and appraisal value, and you contribute the rest as a down payment.
What if the appraisal comes in below the price?
The financeable amount drops, because it is calculated on the appraisal value. It is solved with a larger down payment, renegotiating the price, or finding a lender with different criteria.
Can renovation costs be included?
Some lenders will consider it when the works are quoted and the total stays within their limits. It is one of the points we raise in the negotiation.
How is it different from an estate agency?
In who gives the mandate. The agency represents the seller and is paid on the sale; the personal shopper represents the buyer and searches to your criteria.
Do you also look for assets that are not listed?
Yes. Part of the job is precisely what never reaches the portals: a contact network, lender portfolios and assets at different stages of the process.
Can it be combined with the financing?
That is the usual setup. Running search and financing in parallel avoids the most common scenario: finding the property and not having the money in time.
About this page
This content is informational and is neither advice nor an offer of financing. Final terms depend on each lender and on the analysis of your case.