Frequently Asked Questions About Mortgages
Financial Assessment
(FAQs)
It includes the analysis of your income, expenses, debts, and savings capacity to determine which mortgage is viable for you.
It is not mandatory, but it is recommended to avoid rejections and negotiate better conditions.
Yes, in fact, it’s ideal because it lets you know how far you can go before you start looking.
Mortgage Management and Processing (FAQs)
It means we handle the procedures with banks, notaries, and legal paperwork to make the process fast and without complications.
No, we work on a success basis: we only charge if we secure the mortgage under the agreed-upon conditions.
Yes, although we also present you with the best available alternatives.
Loan and Installment Simulation
(FAQs)
No. It’s a guidance tool that gets very close to reality, but the final installment depends on the conditions offered by the bank.
Yes, you can adjust variables such as years, amount, or interest to see how the installment changes.
Not necessarily, although if you want to receive a personalized analysis you will need to fill out the form.
Comparison of Bank Offers
Yes, we analyze multiple institutions so you can choose the best option, without being limited to just one.
Our team negotiates directly with banks and knows the real market conditions, making it easier to get better offers.
Yes, our commitment is with the client, not with the financial institution.
Mortgages for the Self-Employed
(FAQs)
Yes, banks usually require more documentation and guarantees, but with proper preparation it is entirely possible.
Normally tax returns, VAT filings, employment history, and financial statements.
Yes, at AvalTeca we help with both the purchase of a primary or investment home as well as commercial properties for professional activity.
Mortgages for Non-Residents
(FAQs)
No, having an NIE is essential to access mortgage financing in Spain.
A resident is someone who lives in Spain for more than 183 days a year; all others are considered non-residents.
It depends on the country of origin, but it must always be translated into Spanish and legalized if applicable.
Mortgages for Young People
(FAQs)
In some cases, banks offer special conditions or a higher financing percentage, especially for a first home.
Not always, but in many cases, young people need them to strengthen their risk profile.
Yes, you can apply jointly as long as you both meet the financial requirements.
Mortgages with Guarantors or Additional Collateral (FAQs)
It is a person who takes responsibility for the debt if the mortgage holder cannot pay.
They are liable with their present and future assets, so they must be fully informed before accepting.
Yes, additional collateral such as second homes or deposits can be offered.
Bridge Mortgages
(FAQs)
It’s a loan that allows you to buy a new home while you sell your current one.
Generally between 2 and 5 years, depending on the bank and the transaction.
The conditions are renegotiated, or it converts into a traditional mortgage, although with a higher cost.
100% Financing Mortgages
(FAQs)
Yes, although it’s not common. It usually requires guarantors or additional collateral.
Mainly young people and families with good job stability.
By financing 100%, the installment is higher and the bank usually demands more requirements.
Property Search
(FAQs)
Helping you find the ideal home through our collaboration with Marsant and our network of contacts with banks.
No, we work in alliance with Marsant, which is the expert real estate agency in the local market.
Yes, we also offer this service to non-resident clients looking for a home in the Balearic Islands.
Real Estate Investment Consulting
(FAQs)
For individuals, families, and professional investors looking to make their capital profitable in the real estate market.
Profitability analysis, asset selection, risk assessment, and management with Marsant and financial institutions.
Yes, because we have in-depth knowledge of this market and have local strategic partners.
Mortgage Cancellation
(FAQs)
No. Repaying means paying off part (or all) of the loan, while canceling means removing the mortgage from the Property Registry.
The zero-debt certificate issued by the bank, the cancellation deed, and the registration in the Property Registry.
The costs usually include notary, registry, and management fees. They depend on the initial loan amount and the bank.
Yes, but in the deed of sale, the simultaneous cancellation of the mortgage must be reflected.
Renegotiation of Conditions
(FAQs)
You can renegotiate the interest rate, terms, fees, or the requirement to link insurance and additional products.
Yes. If you want to switch banks, you would need to carry out a subrogation.
It allows you to pay less interest, reduce your monthly payment, or adjust the mortgage to your current situation.
It’s not mandatory, but having specialists like AvalTeca increases the chances of success and obtaining better conditions.
Review of Insurance Associated with the Mortgage (FAQs)
No. The bank may require the contracting of an insurance policy, but the client is free to choose the company.
Home insurance (especially against fire) and in some cases life or payment protection insurance.
Yes, as long as you maintain the minimum coverage required by the financial institution.
Detect surcharges, improve coverage, and gain control over your personal finances.
Mortgage Renewal
(FAQs)
It is the updating of its conditions as it approaches maturity, adapting it to the current financial situation.
It depends on the contract, but it is usually considered at the end of the agreed term or when it is beneficial to renegotiate.
Extend terms, modify interest rates, or change products according to your current needs.
The loan is considered terminated, and you will have to pay off the outstanding debt.
Mortgage Subrogation
(FAQs)
It’s the transfer of a mortgage loan to another bank to obtain better conditions.
Lower interest, reduce monthly installments, or remove unnecessary fees and ties.
It depends on the bank’s subrogation fee and notary and registry costs, although these are usually offset by the savings.
Yes, as long as the new bank accepts the operation and your profile is solvent.
Guidance for First-Time Buyers
Because it helps you avoid mistakes, save time, money, and stress during the process.
From the initial financial evaluation to negotiating with banks and support up to the signing.
No, also with families and even investor profiles looking for their first acquisition.
We work on a success-fee basis: we only charge if we secure the mortgage under the agreed-upon conditions.
Guide to Mandatory Insurance
Legally, only home fire insurance is mandatory, although banks often require more as a condition for granting the mortgage.
Yes, as long as the insurance meets the minimum required coverage.
Mandatory ones are required by law; tied ones are those the bank asks for as a condition, even if they are not strictly legally required.
No. Our service is to guide the client to make informed decisions about their policies.
Debt Restructuring or Consolidation
It means grouping all your debts into a single mortgage, with a lower long-term installment.
It reduces monthly pressure and simplifies financial management, although it may sometimes mean paying more interest in the long run.
Anyone with multiple debts (loans, credit cards, etc.) who owns a property that can be mortgaged.
Yes, we handle the entire process to secure the best available option.