Buying a home in 2023
With the change of year, we all have our New Year resolutions, our new projects, and ambitions…
Is buying a home in Spain one of your targets in 2023?
If the answer is YES, let’s get started on your mortgage process right now. This way, you can prepare to come out and view properties with the certainty of having the right advisors by your side, and the right mortgage ready for you!
The property market has stabilized after years of madness, so now it might be the only time you can find the right property for the right price, or in that area or development you would love to live in, or with those breath-taking views that make it all worth it. Properties are staying on the market for a slightly longer time , and prices and negotiation margins have relaxed compared to the immediate post-covid years. Of course, all this depends on the area of Spain you are looking to buy in.
What makes the mortgage market more competitive in 2023?
Despite a slight increase in rates, banks are eager to provide financing to international buyers, especially with the small slowdown in the real estate market. As a result, there is more competition than ever, which means you can potentially get a better deal by letting us negotiate on your behalf and putting the banks in competition.”
70% loan-to-value (LTV) mortgages are available from a range of lenders, with terms ranging from 20 to 25 years. You can choose between variable and fixed rate options, depending on your financial goals and preferences.”
Are you interested in taking advantage of the competition between banks to get the best mortgage deal for your needs? Let us handle the negotiations and help you find the right lender and mortgage options.
What can we do for YOU?
Firstly, the new regulations make getting a mortgage in Spain cheaper. Under the old rules, borrowers were responsible for paying all the associated costs that came with a mortgage application. These include notary and land registry fees, taxes and other administrative fees, which together come to between 1.5 per cent and 2.5 per cent of the mortgage value. Thanks to the new rules, now the lender is responsible for covering these costs. Note, one item borrowers must still cover is the cost of the property’s valuation.
It is important not to confuse associated mortgage costs with the fees and taxes that come with all property purchases – these are linked with the actual transaction and typically are referred to as buying or purchase costs. Buying costs are always paid by the buyer and include transfer tax (or VAT for a new property), notary, land registry and administrative fees, and legal fees. Transfer tax varies across Spain’s regions, meaning the total of these costs can be between 8 per cent and 14 per cent of the purchase price, depending on where the property is located. But for budgeting purposes, a typical ballpark for these costs is 12 per cent.
More transparent paperwork
Here is what we do for our clients:
1. Provide a simulation and study the viability for the mortgage you are after.
2. Preparation of the mortgage application and selecting the best strategies and banks that suit your financing and mortgage requirements.
3. Negotiating with banks to get the best offer/s possible for you.
4. Guidance and advice all the way until the purchase is completed.
We do all this on a no-mortgage signed, no-fee basis
Why choose Hipoteken?
- We work with 7 mainstream lenders as well as various small banks and private banking entities.
- We have a lot of experience working with international clients from many different nationalities and countries of residence.
- We provide guidance throughout the process, from understanding mortgages in Spain to completing the mortgage and purchase, and more.
- Our service is based on success, so we do not charge to start the process, only upon success.
Our recommendation is to plan ahead and prepare for your purchase:
1. Prepare your mortgage:
a. The best way to get started is to book a call with one of our mortgage advisors. You can do so using this link and choose whether you prefer a phone call or a video call via Google Meet. (Or you can just email us if you prefer!)
b. Get your mortgage pre-approved or ready BEFORE you view properties. This way, once you find the right one, you will be ready to move forward quickly.
2. Get a currency specialist on your side in case you have funds in a different currency than Euros. Read more here.
3. Find a solicitor in the area where you plan to purchase. We always suggest using local solicitors close to the area where you plan to buy a property. Ask us if you need suggestions, but you can also search online for specialists in conveyancing and property purchases who offer their services in various languages and areas.
4. Find an agent to help you schedule appointments. Working with an agent can help you ensure that you have the right viewings scheduled for when you travel.