# Mortgage for NL visa holder ?



## wroliveira (Jul 22, 2019)

I don't have any income, just live off dividends and investments. What are my chances of getting a mortgage in Spain ?


----------



## xicoalc (Apr 20, 2010)

wroliveira said:


> I don't have any income, just live off dividends and investments. What are my chances of getting a mortgage in Spain ?


You'll have to demonstrate income. If you don't have a job then you'll be asked to present your latest (or last few) tax returns to show your income.

We both work, the bank knows what we earn as it goes in every month. But despite mortgage approval, as part of the process we had to present tax returns to show all is above board.


----------



## ksjazzguitar (Dec 22, 2010)

I'm no expert here, but... 

Dividend and investment income are still income, right? I mean, it can go up or down, with some exceptions. It's less predictable, so I don't know how they weight that. But you also might be able to use your investment principle as collateral.

In my experience (at least in the States), mortgage people are always on the lookout of new customers. I'm sure if you call the bank, there will be someone there willing to tell you what kind of mortgage you can get with what you have.


----------



## ksjazzguitar (Dec 22, 2010)

Here is a discussion. It's about the US but some of the same principles may apply.


----------



## Chopera (Apr 22, 2013)

wroliveira said:


> I don't have any income, just live off dividends and investments. What are my chances of getting a mortgage in Spain ?


I'm no expert, but your chances might be better if you buy a property that already has a mortgage against it, especially if you can put down at least 20% of the value of the property. In Spain it is not uncommon for a buyer to take over an existing mortgage on the property being bought, since in Spain mortgages tend to be associated with properties rather than owners. This includes newly built properties which often have a mortgage against them, taken out by the builder in order to finance the construction. This is what we did with the first property we bought in Spain, which was a new build. We put down 20% of the value and the builder transferred the mortgage to us, with no questions asked. That was before the credit crunch though, so maybe these days they have more restrictions.


----------



## xicoalc (Apr 20, 2010)

Chopera said:


> I'm no expert, but your chances might be better if you buy a property that already has a mortgage against it, especially if you can put down at least 20% of the value of the property. In Spain it is not uncommon for a buyer to take over an existing mortgage on the property being bought, since in Spain mortgages tend to be associated with properties rather than owners. This includes newly built properties which often have a mortgage against them, taken out by the builder in order to finance the construction. This is what we did with the first property we bought in Spain, which was a new build. We put down 20% of the value and the builder transferred the mortgage to us, with no questions asked. That was before the credit crunch though, so maybe these days they have more restrictions.


When we were looking for a house to buy, there was one where the seller had arrears and various problems. The valuation came back lower than expected so we were pulling out but the owner was desperate to sell. 

She needed to just get some cash and get rid of the house. It was proposed by the agent that we buy for the amount outstanding in thr mortgage (which was about 80% of the real asking price) and give the woman a lump sum in cash under the table. They then suggested exactly this, that we simply took over thr existing mortgage. Her bank seemed very open to this idea and indeed it looked like it would be an easy transaction. They were even willing to cancel her arrears (several months payments) as parr of the deal. It all got complicated and in the end we didn't do it for two reasons. Firstly i didn't want to do anything in the black, but secondly, the mortgage she had was fixed at a rate of interest much higher than the market standard at the time. We would have just been taking on someone elses problems! 

So, what sounded like a good deal, long term woukd have cost us a lot. If we wanted new conditions then they were not willing to scrub off her arrears and we would have had to put in much more as she was borderline un equity. 

So yes, subrogation of a mortgage may well be possible and indeed often an easy root but remember interest rates are a lot lower now than a few years ago so be careful what you end up signing and do your sums! Still you could get a good deal and an easy transaction though!


----------



## wroliveira (Jul 22, 2019)

Thanks everyone for their contributions. US and Spain can't be compared when it comes to business environment. I reached out to my bank and they refused. Filled up the EVO online simulation and got refused too. It seems like no job, no mortgage. 
Any banks that take my tax declaration as proof of financial means ?


----------



## xicoalc (Apr 20, 2010)

wroliveira said:


> Thanks everyone for their contributions. US and Spain can't be compared when it comes to business environment. I reached out to my bank and they refused. Filled up the EVO online simulation and got refused too. It seems like no job, no mortgage.
> Any banks that take my tax declaration as proof of financial means ?


Online banks such as ING, EVO etc are pretty much automated processes. Your best chance is to go and talk to a branch manager in a "real" bank.

I was with my bank for many years and living in a rented house. I knew the manager from my days of when i used to be autónomo and she was always saying "when will you buy a house?". When we did buy our house, we went in, spoke to her and she said "yes, you can have a mortgage". I was nervous to put down the deposit on the house without some sort of guarantee or letter of mortgage offer. But she insisted "as long as valuation is ok, we will give you the money, don't worry, it will be all done and signed off in branch and I already agree to it so just relax, you can have a mortgage". None of that computer decision stuff. 

Branch managers tend to have control up to certain limits. For example, she told me that up to 80% they can sign off in the branch and no computer or algorithm is involved. The only thing that did not depend on the branch was, obviously, the check with Banco de España and the various agencies to check that a) I had no bad debts and b) i had no other loans that I'd not told them about. And then of course rhe valuation of the house. All standard processes and checks they have to do.

If i had wanted more than 80% then it would have had to be sent to the risk department to evaluate as it was outside of the limits of the branch manager. Although she said if i did want more (as we were reforming too), they would "recommend" approval (which means basically it will happen). I stuck within the 80% anyway. 

Now, keep in mind that this was my bank for many years. Thet knew me, id previously had loans which i paid back, i had credit cards which were correctly maintained, I'd never been negative on my account etc. I had held thr same job for the same business with regular income for almost a decade and so had my husband. 

So clearly they had a level of trust already in us as clients and knew our finances. But even as a new customer, its worth talking to a bank manager face to face. If you can demonstrate income with proof of regular deposits, tax returns and so on then they may listen to your case. 

Limits will apply. Since the financial crash, the bank of Spain have imposed strict guidance on how much banks can lend. They can go over this but apparently have to pat some type of tax or fine if they do. So in my case, if we had have wanted more than 80% there would have been a financial cost for the bank which they would have accepted but probably passed on to me with less favorable conditions.

From what I understand. Tax residents in spain who are working and have regular income and at least one spanish tax return completed can borrow up to 80% of the lower of the purchase price or valuation as long ad the repayments (along with any other financial commitments you have such as loans etc) do not exceed a third of your income. 

Non residents, or those with income from abroad can borrow much less. I think someone told me between 50 and 60%. So obviously depends on circumstances. But if you are with provable income and can demonstrate that you don't need the maximum levels of borrowing, have enough for a part payment and all of the taxes etc then maybe you can find a good bank manager that will look at your case!


----------

