Mortgages for Beginners

Mortgage loans are the best way to finance the purchase of a home, as the property itself serves as collateral for repaying the requested amount.

aFinance offers a free, no-obligation assessment to secure the best conditions available on the market.

There are no magic formulas or one-size-fits-all answers. If you think interest rates are going to rise, a fixed-rate loan is better. On the other hand, if you believe they will fall, a variable-rate loan is preferable. There is also a hybrid option: the mixed mortgage. In this case, a fixed interest rate is applied for a period, followed by a variable rate.

It’s important to keep in mind that we’re talking about loans over thirty years, so rates may fluctuate in both directions.

So, which one to choose? The best loan is the one that fits your current financial situation, especially considering the monthly payment relative to your income.

The FEIN (European Standardised Information Sheet) is a binding document for the bank, which must include the financial details of the mortgage loan. Once it is issued, the mortgage is considered fully approved.

It must include, among other details:

• Issue and validity date
• Loan amount
• Repayment term
• Type of interest rate: fixed, variable, or mixed
• Initial interest rate
• Total amount to be repaid
• Discounted products (if applicable)
• APR (costs included in the APR)
• Installment amount
• Amortization schedule
• Early repayment costs
• Consequences for the client in case of non-compliance

A valid ID card (DNI) or Foreigners' Identification Number (NIE) in all cases.

If you are employed:

• Employment history report
• Last 3 payslips
• Income tax return / tax withholding certificates

If you are self-employed:

• Employment history report
• Last 3 self-employed payment receipts
• Last 4 quarterly VAT and income tax payments, as well as the annual summary
• Income tax return

Some banks may also request bank statements.

I HAVE NO SAVINGS?

Banks typically provide up to 80% of the financing, meaning you would need to have the remaining 20% plus the associated costs. At aFinance, we can secure full financing for you, including the costs, through various options tailored to your financial profile.

I HAVE A TEMPORARY CONTRACT?

The situation for an employee with a temporary contract varies, and conditions depend on each bank. However, at aFinance, we can offer advice and explore alternative options to secure the desired financing.

I LIVE OUTSIDE OF SPAIN?

Yes, it is possible. However, bear in mind that the terms will differ from those for a Spanish tax resident. Regardless, we will find financing that suits your needs.

IT'S FOR AN INVESTMENT?

Yes. Although the loan amount, term, and interest rate will differ from what you would get for your primary residence, we can still secure favourable terms for you.

I ALREADY HAVE A MORTGAGE?

Yes, it is possible. However, your debt level will need to be taken into account. Nonetheless, at aFinance, we will find a way to assist you.

I'M OVER 75 YEARS OLD?

In general, the age limit is 75 years. However, some banks allow applications up to the age of 80.

We have various agreements with different banks to secure the best possible financing for you.

A mortgage broker searches for the best conditions on the mortgage market based on your profile. They advise you on all the steps to take and support you from the moment you hire their services until the mortgage is signed.

Yes, we can secure the amount you need, although this will depend on your socio-economic conditions.

In fact, it is also possible to obtain 100% financing plus expenses.

Our role is that of a mortgage broker. The mortgage loan agreement is formalised with the bank through a public deed, so you will need to repay the borrowed amount to the banking institution.

Because we are a company with over 20 years of experience, giving us access to a wide network of lenders to find the financing that best suits you. We work on every deal to improve conditions in detail, such as interest rates, linked products, and terms. And because with aFinance you will have full support from start to finish: we guide you through the entire process, avoiding mistakes and streamlining every step until you secure your dream home.

A mortgage broker is an agency or professional whose job is to secure the best  mortgage deal for their clients through terms that would be impossible to achieve  independently.

A mortgage broker finds and manages the best mortgage for you. They gather  information about your financial situation and needs to help you find the right  mortgage, such as a fixed-rate, mixed, or variable-rate mortgage, and the best bank  for your requirements. These mortgage agents will also provide information on a  wide range of options with various rates and terms. A mortgage broker will help you  find the best deal and inform you about the different types of mortgages. The best  mortgage brokers work with a variety of banks and can offer the best mortgage with  the most favourable conditions.

Working with a mortgage broker offers numerous advantages when applying for a mortgage. A mortgage broker has access to a wider network of financial institutions and can compare different mortgage offers to find the best conditions. In addition, a mortgage broker provides personalized advice, legal support throughout the process, and helps secure more competitive interest rates, making the mortgage process faster and more efficient.

Working with a mortgage broker is especially recommended if you are not familiar with the financial market or if you want to save time during the financing process. A mortgage broker analyzes your financial situation, compares options, and guides you through each step to help you secure a mortgage with optimal financial conditions. Their experience is key to navigating an increasingly complex mortgage market.

Before choosing a mortgage broker, it is important to research and compare. The best mortgage broker is not always the cheapest. Reputation and results achieved with other clients are usually the best indicators of the quality of service a mortgage broker provides.

In some cases, a mortgage broker can negotiate financing above 80% of the property value, even securing 100% mortgages or mortgages covering 100% plus costs, depending on the client’s financial profile. To do this, the mortgage broker analyzes your financial situation and presents your case to the institutions most likely to approve it.

Not all mortgage brokers in Barcelona offer the same level of service. Many limit themselves to presenting one or two financing options, while aFinance mortgage brokers provide comprehensive support throughout the entire buying process. It is advisable to choose a mortgage broker who not only secures the mortgage but also supports you throughout the purchase process and can even assist in negotiating the property.

A broker has access to multiple lenders and compares offers from different banks, while a bank only offers its own products. In addition, a broker negotiates on your behalf to secure better terms, and in many cases, the service may be free or included in the mortgage deal.

When is each option better?

A broker is ideal if you want to compare options, save time, and get better conditions. A bank may be enough if you are already a customer and are offered good terms without the need to negotiate.

The cost of a mortgage broker depends on each case. Typically, the service is free for the client, as the broker receives a commission from the bank. However, there are specific situations where fees may apply, usually depending on the complexity of the transaction. In any case, all costs are communicated in advance with full transparency.