MORTGAGE COSTS

Obtaining the funding for a mortgage application will comprise the following fees and charges:

Property Valuation Fee

Calculated as a percentage of the valuation amount but is normally in the region of 250 to 500 euros. For larger properties the rate can become 1% of the valuation.

Bank Arrangement Fee

Normally between 1% to 2% of the mortgage amount.

Stamp Duty (Impuestos Actos Juridicos Documentados)

This is a tax applicable to obtaining a mortgage, which is usually 1% of the mortgage liability.

Notary Fee

In the same way the purchase has to be inscribed in front of a notary, the mortgage deed must also be inscribed and the notary will make a charge for this.   Law establishes these costs as a percentage of the mortgage liability and as such 67.61 euro plus between 0.0338% to 0.023%.

Property Register Fees

These costs also are established as a percentage of the mortgage liability and are 18.03 euro plus between 0.131% to 0.015%.   As you can see the costs of obtaining a mortgage can be significant, therefore, it is advisable to apply for the largest mortgage you can afford as increasing the loan or remortgaging at a later date is an expensive process. The legal costs in Spain are always the same, it doesn't matter which lender you use as they are governed by law.