Finding the perfect place to buy a home can be a complex task. But at the end, few options are as good as living in Mallorca. This is one of the most wonderful earthly paradises in Spain, and living there is a real experience.
Now, the real estate there is usually quite expensive, so it is common to ask for a mortgage to be able to buy the house we want. So, if you don’t know anything about a mortgage in Mallorca, how much they can grant you, what are the requirements, and more, don’t worry, because we will tell you all about it below.
Mallorca, the best place to live
According to Sunday Times votes, Mallorca is the best place to live. This is a place with an excellent climate, as it has about 300 sunny days a year. In addition, its more than 200 beaches with incomparable landscapes are the ideal place to have a home and enjoy life.
This is what makes Mallorca one of the most interesting real estate destinations in Europe. And while in the past it was the place to have a second home, with the growth of online work, it could become your permanent home.
Best of all, with the increase in interest in property in Mallorca, the government has developed a series of measures to facilitate the purchase of real estate, and you could benefit from them.
Is it possible to take out a mortgage for more than 80% in Mallorca?
If you have already looked for housing options in Mallorca, you have probably realized that it is somewhat expensive. Living there is not cheap at all, so looking for mortgages is the best solution. Generally, in Spain, mortgages are given that do not exceed 80% of the cost of the property, but in Mallorca it is different.
Recently, the Balearic Island Government has made an important decision regarding the percentage. This change allows people to obtain mortgages of more than 80%. This increases the chances of owning an apartment or a house in Mallorca, and it is something you could do.
Requirements to obtain a mortgage of more than 80% in Mallorca
To obtain one of these mortgages of more than 80%, without a doubt, is the desired objective. Fortunately, the Balearic Housing Institute has approved the allocation of mortgages that in some cases could reach 100%. This means that you will need less savings to buy the property.
But in order to make the purchase, it is necessary to comply with a series of requirements, and here we will tell you what they are:
In order to apply for this type of mortgage, the applicant must:
- Be of Spanish nationality, of a member country of the European Union, or at least be a legal resident in Spain.
- Must have resided in the Balearic Islands for at least 5 years, whether continuously or not.
- The buyer and the mortgage applicant must be the same person.
- The gross annual income must be greater than 57,117.67 euros. And if the purchase is made by two people, the joint income must exceed 64,257.38 euros per year.
- You must be creditworthy, have a stable job and a good credit history.
- The property must be used as a permanent and/or habitual residence, not as a secondary or vacation home.
- The property to be purchased cannot have a value greater than 270,141.20 euros, including storage rooms, garages and more. Taxes and other expenses related to the purchase transaction will not be taken into account here.
- The mortgage must be a minimum of 80% of the value of the property, with a maximum of 100%.
- A counter-guarantee policy must be signed so that IBAVI can make claims for unpaid installments, if any.
How do I get a mortgage in Mallorca?
If you are going after a mortgage of more than 80% in Mallorca, what you need to do is to comply with the following steps:
- Go to the banks and ask for information. If you are interested in policies of more than 80%, the banks that currently provide them are CaixaBank, Colonya and Cajamar. The rest of the banks could grant a maximum 80% mortgage, but they are also options.
- Then you will have to request a public guarantee and submit the documentation required by the bank. Then the bank will send the application to IBAVI, and it will be processed.
- Once it is submitted, you must wait for the response. This may be positive or negative. If it is negative, you have 15 days after the notification to file an appeal.
- In case the application is answered favorably, the bank will give you all the information about the mortgage, and you will be able to assess whether it suits you or not.
- Finally, you can sign the mortgage, formalize the sale and purchase and complete the formalities at the notary’s office.
Get in touch with the best
If getting the perfect mortgage and house in Mallorca has become too complicated for you, the best thing you can do is to entrust this process to qualified professionals. In the case of Lionsgate Capital, they have over 50 years of experience, and can help you get the best mortgage conditions in Mallorca.
This will help you to get your dream home in the perfect location. And this is possible because they have specialists with contacts in more than 30 banks in Mallorca, so no job is impossible for them. So if you want to live in Mallorca, contact them and start the process as soon as possible.