Buying a property on the Costa Blanca is one of the most important (and exciting) decisions you can make. The climate, quality of life and investment make this area an ideal choice. However, for many buyers, the process involves applying for an mortgage, and understanding how it works is key to making the best decision.
In this article we explain everything you need to know.
What to know before taking out a mortgage?
Before applying for a mortgage, If you have a financial situation, it is essential to analyse your financial situation and to know some key aspects:
Debt capacity
Banks usually recommend that your monthly mortgage payment should not exceed 30-35% of your income. This will allow you to maintain a healthy economy.
Previous savings
Generally, you will need to have at least 20% of the value of the property (as most institutions will finance up to 80%), plus an additional 10-15% for expenses (taxes, notary, registry, etc.).
Type of mortgage
There are mainly three types:
- Fixed mortgagestable instalments throughout the life of the loan.
- Variable mortgageThe interest rate: it depends on the Euribor, it can go up or down.
- Mixed mortgagecombines both.
Which one you choose will depend on your profile and risk tolerance.
Job stability
Institutions particularly value permanent contracts or stable income, although there are also options for self-employed or international buyers.
At Immosol, We accompany our clients in this process, facilitating contacts with financial institutions that offer competitive conditions.
Should I take out a mortgage or buy in cash?
One of the most common doubts is whether it is better to finance the purchase with a mortgage, or to pay cash and pay in cash. buying without a mortgage.
Advantages of the mortgage
- It allows access to housing without having the total capital.
- You maintain liquidity for other investments or contingencies.
- In some cases, it may be fiscally interesting (depending on country of residence).
Advantages of buying in cash
- You avoid interest and financial costs.
- Faster and simpler purchasing process.
- Greater bargaining power on price.
In areas such as the Costa Blanca, Many international buyers opt for a combination of both strategies: part cash and part financed.. The decision will depend on your personal situation, financial objectives and investment profile.
Mortgages for new housing
If you are thinking of buying a newly-built property, such as a new house, such as the Immosol promotions, If you do not have a mortgage, you should take into account some particularities of the mortgage:
Financing during construction
In many cases, payments are made in phases while the house is being built. The mortgage is usually formalised at the end, at the time of handover.
Favourable conditions
Financial institutions usually offer good conditions for new construction, especially if the development has previous agreements with banks.
Greater legal certainty
Newly built homes have guarantees, energy certifications and comply with current regulations, which also has a positive influence on the granting of the mortgage.
In addition, at Immosol we help you to manage the whole process, from booking to signing, so that buying your home is a comfortable and secure experience.
All set to take the step into your new home
Applying for a mortgage need not be complicated if you have the right information and the right advice. Analysing your situation, comparing options and relying on professionals will make all the difference.
If you are thinking of buying a property on the Costa Blanca, Immosol will be pleased to help you to find the best option for you and accompany you throughout the process.
