Further decrease in the Spanish average interest rate since January
Explore the latest Spanish mortgage rates and learn tips from Cajasur to secure the best deal on your mortgage.
Now that home buyers are back in the market, banks are responding quickly—sometimes on the same day—and the average wait* for offers drops to 7 days. We're thrilled to see banks are continuing to make more competitive offers.
Variable mortgage rates see a slight decrease in February
When comparing the best interest rate, it’s important to bear in mind that there are three kinds of mortgage products on offer in Spain: variable, mixed, and fixed rates.
In February, the average interest rate in Spain dropped to 4.27%, a decrease from the previous month's 4.91%. This marks a continued decline from 5.39% in December 2023.
The best variable rate mortgage in February was 5,40%, a slight decrease from January’s 5,46%.
In February, the best fixed-rate mortgages slightly increased to 4.05%, up from 3.96% the previous month.
The mixed-rate mortgages saw an increase, reaching 4.61%.
*The interest rate data for Spanish mortgages for non-residents and the time to receive an offer are based on anonymized data collected from real mortgage offers that Homevest users have received.
So, how can you secure the best deal on your mortgage in Spain?
Buying a property is very exciting, but it comes with challenges, especially if you're accessing a mortgage in Spain as a non-resident. From language barriers to unfamiliar banking processes, the home-buying journey can become overwhelming.
But it’s not impossible. In 2023, foreigners acquired over 67,000 houses, making up around 13% of all transactions. Of those, 7% signed a mortgage.
This means lots of people like you did it
Maria from Cajasur, a leading Spanish bank specializing in mortgages for non-residents buying in the south of Spain, offers three key tips to help you secure better mortgage terms.
Starting her banking career in 2006 at Kutxabank in Marbella, Maria Isabel Morillo is a Deputy Branch Manager at Cajasur, focusing her efforts on services for non-residents.
Here’s what Maria recommends if you want to get better terms for your mortgage in Spain:
1️⃣ Build a strong bank relationship. Becoming a long-term client and using additional services like investment funds can lead to lower mortgage rates.
2️⃣ Combine insurance for savings. Spanish law mandates insurance for mortgaged properties. Opting for Cajasur's insurance could cut your rate, save money, and secure your property.
3️⃣ Choose Homevest for better offers. Working with Homevest simplifies the process, often leading to better terms thanks to the preparatory work they complete.
Remember that having income in a stable currency like the EUR, USD, SEK, or NOK opens up a wider range of mortgage choices. A more volatile currency can limit your options.
