Mortgage guide for Spain (2026)

Mortgage types

• Fixed: same payment for the whole life of the loan. 2026 rates: 3.8%-5%. Best if you want stability.
• Variable: Euribor + spread (typically 0.7%-1.5%). Annual or semi-annual review. Cheaper if Euribor falls, more expensive if it rises.
• Mixed: initial fixed tranche (3-10 years) and variable afterwards. A compromise between safety and cost.

12-month Euribor in May 2026: ~2.1% (after a 4.1% peak in 2024). Moderate downward trend.

How much can you borrow

General Bank of Spain rules:

• Up to 80% of the lower of price or appraisal for residents' primary home.
• Up to 70% for second homes.
• 60-70% for non-residents.
• Monthly payment: max 35-40% of household net income.
• Maximum term: 30-35 years, borrower not exceeding 70-75 at maturity.

Example: couple with €3,500/month net → max payment ~€1,350/month → loan ~€250,000 over 30 years at 4% fixed.

Mortgage-related costs

After Law 5/2019 (LCCI), cost allocation is:

Total cost for the customer: €300-500 (only the appraisal), unless an origination fee is applied.

Tied products — watch out

Many banks offer rate reductions (-0.1% to -0.5%) in exchange for signing up to:

• Home insurance (often cheaper outside the bank from year 2 onwards).
• Life insurance (premium often high).
• Pension plan with minimum contribution.
• Salary + card + bills direct debit.

Always work out the TOTAL cost: a 0.3% discount may not offset paying €400/year extra for an overpriced life insurance policy.

Non-resident mortgages

Typical conditions at specialist banks (Sabadell, BBVA, CaixaBank):

• LTV: 60-70% of the lower of appraisal or price.
• Rate: 0.3-0.7% higher than for residents.
• Term: up to 25 years.
• Maximum age: 70-75 at maturity.
• Documents: passport, NIE, last 3 payslips, tax return from country of origin, bank statements.

Quick calculator

Simplified monthly payment formula:

Payment = Principal × (i × (1+i)^n) / ((1+i)^n - 1)

where i is the monthly rate (annual/12) and n the number of months.

Example: €200,000 over 30 years (360 months) at 4% fixed (0.333% monthly) → payment = €954.83/month. Total interest cost: €143,739.

Test different scenarios with our mortgage calculator.

Most common mistakes

• Sticking to the first offer. Get at least 3 offers (FEIN — Standardised European Information Sheet) before deciding. An independent broker speeds this up.
• Not comparing APR. It's the real cost indicator — it includes fees and tied products.
• Borrowing to the limit. If the payment approaches 40% of income, any unexpected event (unemployment, divorce, rate hike) sinks you.
• Not reading floor clauses. Although banned since 2017, review the contract.
• Ignoring early repayment. Almost all contracts have a 0-2% fee — repaying €5,000/year extra can save tens of thousands in interest.