Mortgage

Financing your future home in Spain is not difficult although we strongly recommend you to contact several banks for the best offer possible prior purchasing your home. At SUN PROPERTIES Marbella we will be more than pleased to assist you in this process, from helping you with the right choice of bank to any legalities or translations if necessary.

Bank charges in mortgage lending or mortgage loans.

The most important commissions on mortgages are:

Expenses before a mortgage is granted.
The bank makes an appraisal for the apartment or premises that are to be mortgaged, sending an appraiser a request notice to the Property Registry to verify that there are no charges on the property that is to be mortgaged. The costs of these procedures are to be paid even if finally loan is not granted; these costs amount to around 200 euros depending basically on the value of the property.

Expenses to grant a mortgage.

  • The formalisation fee: This is the percentage that the bank charges at first by the fact of granting the mortgage, significantly influences on the actual cost of the mortgage and is included in calculating the APR or (TAE). This commission is normally around 1% for a home and can vary substantially from one bank or another.
  • Tax Stamp Duty: the amount is the result of applying the 0.5% to the total amount guaranteed (not the loan, but all guaranteed, which is loan, interest and costs). Approximately less than 1% of the capital.
  • Notary and Registration: official fees that are billed by these professionals. The amount depends directly on the mortgage principal. Some may be around 1,000 euros for a home.
  • Expenses to cover the Processing Agency: the title deed, once signed, will be presented in the offices of the Treasury to settle the above tax, and then presented to the relevant Land Registry. A normal price to manage all of this would be around 150 euros and can vary depending on the city.


Expenses in case of surrogacy, redemption and cancellation.

  • The fee for mortgage cancellation. Often similar to the early redemption. Applies if we pay the entire loan being cancelled or transmit the housing loan and the buyer is not interested in staying with our mortgage subrogation
  • The fee for early redemption: The fee charged by the bank for advance funds, if for example we have saved 5,000 euros and we want to reduce the amount of the mortgage. Usually 1% of the capital that pays less or even not charge anything for anticipating bank capital, especially in Internet banking.
  • The fee for mortgage surrogacy: is the commission charged by the bank usually if there is a mortgage on the property and the buyer assumes the mortgage. The commission also is usually around 1% but may be less with some entities.


Rest assured that with SUN PROPERTIES Marbella our total support will always be available for any help and advice.