Are you thinking of buying a home in Zaragoza? Whether you want it as your primary residence or as an investment, it's a good option. Many local and foreign investors have set their sights here, and experts consider it a market with many opportunities. In this process, it makes sense to consider the option of taking out a mortgage, which for many can be complex and overwhelming. Here we explain why it's not so complicated. Join us as we read on.
In Zaragoza, there are several types of mortgages that seek to adapt to different buyer profiles and needs. These are the most common:
A fixed-rate mortgage is a loan in which the interest rate remains constant throughout the life of the loan. As the monthly payments do not vary, the borrower has the peace of mind of knowing exactly how much they will have to pay each month. Fixed-rate mortgages are ideal for those who value stability and predictability in their finances, as they are not exposed to fluctuations in the financial market. In Zaragoza, Ibercaja offers a fixed-rate mortgage service with a competitive fixed interest rate of around 2.25% APR, which is ideal for those seeking stability in their payments.
In the case of variable-rate mortgages, the interest rate is adjusted periodically based on a benchmark index such as the Euribor, plus a fixed spread set by the financial institution. Interest rates are commonly reviewed every six or twelve months, which may result in changes to monthly payments. The initial rate for variable mortgages is usually lower than for fixed mortgages, making them attractive to buyers looking to enter the real estate market with more affordable payments.
Combination mortgages combine elements of fixed and variable mortgages. Generally, the interest rate is fixed for the first few years and then becomes variable. This option may be attractive to those who seek stability in the early years of repayment but also want to benefit from possible future interest rate cuts.
In order to facilitate access to housing for younger people, they have designed a mortgage for young people under 35 who want to buy a home in Zaragoza. It consists of a discount on tax payments. If the property is newly built and costs less than €100,000, a 30% reduction in IAJD (stamp duty) will be applied; if it is second-hand and costs less than €100,000, there will be a 12.5% reduction in ITP (property transfer tax). Banco Santander has its "Smart Mortgage," with very good conditions for young buyers.
The bank "Caja Rural de Aragón" offers a flexible program with its "Customized Mortgages" product, making it easy for people to choose the mortgage that best suits their needs. It also offers solutions for changing the type of mortgage through mortgage subrogation.
We recommend reading: fixed, variable, or mixed mortgage.
The bank will ask you to meet a series of requirements in order to assess your profile as a mortgage applicant. Have the following documents to hand:
The applicant must present their ID card or foreign resident ID number.
If you are married, you will need to provide your family register or marriage certificate.
Another requirement is your employment contract and your last three pay slips, in a format that breaks down your salary details. The bank always values stability and length of service. If you are self-employed, you must submit your tax returns and proof of income.
They must be the most recent ones, covering at least the last three months of activity, showing regular income and accumulated savings.
Documentation of other debts, if any. They will review your credit history to determine your ability to pay.
An approved appraiser must appraise the property that you wish to purchase.
If you have already made the reservation, present the property deed.
You may be interested in: deeds to a house.
When applying for a mortgage in Zaragoza, you should bear in mind that, in addition to the monthly payments, there are a number of expenses and taxes that must be paid. Let's take a look:
The bank requires a property appraisal in order to grant a mortgage. This cost is usually borne by the buyer and ranges from €300 to €600, depending on the value of the property.
The mortgage deeds must be signed before a notary, and this generates costs ranging from €500 to €1,000.
This tax is applied when the mortgage is formalized, and the percentage varies depending on the autonomous community; in Aragon, it is around 1.5% of the mortgage amount.
When purchasing a new home , the corresponding VAT must be paid. This is 10% of the value of the home or 4% if the home is subsidized housing.
Some institutions charge origination or application fees, which vary considerably between different banks.
Generally, in order to grant a mortgage, banks require the purchase of insurance such as home or life insurance.
Choosing the best mortgage in Zaragoza requires careful evaluation of the different options available and how they suit our needs. Here are some guidelines to make this choice easier:
Before you start looking for mortgages, it is essential to determine how much you can afford to pay each month. This should include not only the mortgage payment, but also other associated expenses, such as taxes and insurance. It should also include the origination fee that you will have to pay when you take out the mortgage loan with the bank. This fee covers the costs of reviewing and processing your application, as well as the costs of formalizing the loan.
Interest rates determine the total cost of your loan, so it is important to analyze them carefully. A slightly lower rate means significant savings over the life of your mortgage. Compare offers from different lenders and don't be swayed solely by the initial rate; you must calculate the total amount of the mortgage loan.
It is essential to read the terms and conditions of each mortgage carefully. Some lenders offer attractive interest rates, but offset them with high fees or unfavorable conditions. Carefully review clauses such as early repayment fees, which sometimes increase the cost if you decide to make advance payments; and linkage clauses, which may require you to purchase additional products such as insurance or pension plans. Check for floor clauses that set a minimum variable interest rate, which would affect the advantage of possible Euribor decreases.
Not all offers are final. Depending on your financial profile and your relationship with the institution, there may be room to negotiate more favorable terms.
If you find the mortgage application process complicated, consider hiring a financial advisor or mortgage broker. With their expertise, they can help you better understand the implications of each mortgage and how they align with your needs, as well as find the best deals and negotiate favorable terms on your behalf.
Comparing mortgage offers in Zaragoza can be a complex process, but here are some tips to make it easier:
There are various online tools and platforms that allow you to compare mortgages from different institutions quickly and efficiently. These platforms usually show interest rates, conditions, and associated costs. BBVA has a very useful online calculator for simulating payments.
The Annual Percentage Rate (APR) is a key indicator that allows you to compare the total cost of a mortgage. It includes the price charged by the bank for lending the money, plus the interest and fees associated with the products, i.e., it reflects the actual cost of the mortgage to you.
It is important to be clear about which conditions are essential and which are negotiable. This will help you filter your options and focus on mortgages that really suit your needs.
Don't settle for the first option you find; request simulations from different institutions. Use technology to your advantage; there are some online platforms that allow you to compare several offers at the same time, giving you a clear idea of the actual costs.
It is possible to negotiate the terms of your mortgage once you have a clear understanding of the offers from different lenders. A key point to discuss is the interest rate; if you have a good financial profile, you may be able to secure a lower rate than the one initially offered, which will allow you to pay less interest over time.
Likewise, many institutions offer interest rate discounts if you decide to purchase additional products, such as insurance or pension plans. For example, CaixaBank is known for its bonuses when you do so and also offers flexible options with fixed and variable rates. Consider whether it is worth purchasing these products in order to obtain better conditions.
On the other hand, it is important to pay attention to fees, as some institutions may waive origination or prepayment fees if you request it, so don't hesitate to take advantage of this opportunity.
Finally, you may also consider negotiating the repayment term, as a longer term can reduce your monthly payment, although it is important to remember that this could increase the total cost of the loan.
Without a doubt, before looking for a mortgage, you should assess your current financial situation. Start by determining your monthly income, including salary, bonuses, and any additional income. Banks evaluate job stability and regular income when granting a mortgage. You should also have savings, a minimum of 20% of the value of the home for the down payment, and 10% for associated expenses such as taxes, notary fees, etc. At the same time, analyze your monthly expenses, including rent, bills, food, and any other financial obligations.
To calculate your borrowing capacity, multiply your monthly income by 0.30 or 0.35. This will determine the maximum amount you can allocate to your monthly mortgage payment. In other words, your mortgage payments should not exceed 30-35% of your income.
On the other hand, as mentioned above, use online mortgage calculators to help you estimate how much you can afford to pay, taking into account the interest rate and repayment term. Make sure that the payments are manageable within your budget and that you can cope with possible interest rate rises if you choose a variable-rate mortgage. Some banks, such as BBVA and Santander, have very good simulators that allow you to adjust variables such as the term or the amount financed.
Failing to pay your mortgage has serious consequences that are essential to consider. If you do not make your payments on time, the bank will apply late fees, which will increase the total amount of the debt. If this situation continues and you still do not make your payments, the bank will begin foreclosure proceedings , seizing your home and selling it to recover the money lent. In addition to this, mortgage default will have a negative impact on your credit history, making it difficult to obtain new loans.
Therefore, if you find yourself in financial difficulties, contact your bank as soon as possible to try to negotiate a payment plan or debt restructuring to avoid further problems.
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Choosing a mortgage in Zaragoza is a process that requires time and careful evaluation of the available options. The most important thing is to choose the mortgage that best suits your needs and financial situation. Keep in mind that a mortgage is not just a loan, it is a financial decision that will accompany you for several years of your life.
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1.057.019,75 €
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