What you need to know about applying for a mortgage abroad
Do you have questions about taking out a mortgage abroad? Are you thinking about buying a house, apartment, or villa on Ibiza? Do you want to know more about the rules for applying for a mortgage on Ibiza? You can find the most important information in this article.
Applying for a mortgage on Ibiza is different than in the Netherlands. On Ibiza, the maximum amount of the loan (if you are not a Spanish taxpayer/are a non-resident) is between 60 and 70% of the purchase sum. If you are a resident (taxable in Spain), the maximum amount of the loan is around 80%. In the Netherlands, the maximum amount is 102% of the market value.
When taking out a mortgage for a home on Ibiza, it is important to compare the interest rates of the different banks. The lower the interest rate, the better. This interest is the Euribor* interest + the interest of the bank. On average, this is Euribor* + 3.75%. Thanks to the number of mortgages our partner provides, we can offer mortgages for Euribor* + 1.7%.
Do you want to take out a mortgage for a second home? Then the mortgage interest is not deductible from income.
Information about a mortgage in Spain:
- Taking out a mortgage on Ibiza is different than in the Netherlands
- The maximum amount of a mortgage on Ibiza is 80% of the purchase sum
- It is important to take out a mortgage with the lowest possible interest rate
- Do you want a mortgage for a holiday home (second home) on Ibiza? Then the mortgage interest is not deductible from income
Click here to see what kind of mortgage we can offer you. Of course, there are no costs or obligations connected to this.
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*Euribor: the interest that banks pass on to each other. At this moment (July 2016), the Euribor interest is -0.370%.