MORTGAGE FINANCING

In INMOBILIARIA PALMA DE MALLORCA BONAFINCA we carry out free financial studies, for this we have specialized financial advisers to design financial proposals tailored to the client. In addition, we have agreements signed with Spanish and foreign banks to obtain the best mortgage conditions on the market.

Putting your finances in order and having all the necessary financial information will help you evaluate your debt capacity and accumulated savings, and present and future effective income and expenses.

It is one of the most competitive, transparent and safe activities:

Below we explain what a mortgage is, some types of mortgage loans, documentation necessary to apply for a loan and the expenses and taxes in the sale of a home.

The mortgage is a real right of guarantee and realization of value, which is constituted by means of a public deed before a notary public. In addition, the laws require that the mortgage deed be registered in the Property Registry. Essential requirement for the mortgage to be born and reach effectiveness between the parties and against third parties, its function will exclusively be to serve as a guarantee, allowing the mortgagee (Bank, Savings Bank, natural or legal person) to submit the mortgaged asset for sale forced, in case the debt is not paid within the agreed term.

The property is not owned by the Bank due to the fact that it has granted the mortgage; at all times it is the property of the person who bought it, who can sell or rent it or even re-mortgage it, within the legal limits.

The best loan is the one that best suits your possibilities and that requires keeping in mind the three essential factors that intervene in the monthly payment of your mortgage:

You can choose the monthly payments you want to pay, choosing from a wide variety of types of mortgage loans. Some examples:

 

FOR SELF-EMPLOYED WORKERS:

 

 

FOR SELF-EMPLOYED WORKERS (SELF-EMPLOYED):

 

DOCUMENTATION TO BE PROVIDED BY THE SELLER:

 

 

In case of being a New Construction:

The expenses in the purchase – sale are shared between buyer and seller

EXPENSES CHARGED BY THE SELLER

 

  • The Plusvalía: it is a Municipal tax on the increase in the value of the land, which is paid each time a transfer of the property is made.
  • Those derived from the intervention of a Real Estate Agent.

 

EXPENSES TO BE CHARGED BY THE BUYER

 

    • 8% Tax on property transfers in second-hand free homes. (VAT 10% on new construction homes). This amount is paid on the deed value.
    • 1.2% Approx. Documented legal acts (AJD). , this tax records the notarial documents of the value of the mortgage guarantee.
    • The mortgage loan deed expenses, if any.
    • Bank expenses: opening commission, insurance, the entity will inform you of the possible commission in case of early repayment.

 

  • Notary Public: a mortgage loan deed and a deed of sale are made.
  • Property Registry: the deeds are registered as you are the new homeowner and as you have a mortgage loan.
  • Agency: it is the one who usually takes care of the administrative procedures: registration, payment of taxes …
  • Property appraisal: the buyer has to pay into the appraiser’s bank account.

The total expenses in the purchase of a house oscillate between 9% and 13% of the deeded value.

Real Estate Financial Dictionary

Real estate law

Compare listings

Compare