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Exchange rate

On February 23, 2012
1 USD = 29,77 RUR
1 EUR = 39,41 RUR

Purchase on credit

How did it develop

It is difficult to imagine that quite recently mortgage in Spain was unavailable not only for foreigners but even for residents of the country. That situation began to change in 90-s when Spain incurred obligations in 1992 in Maastricht providing obtaining financial solidity of peseta, low inflation rate and и interest rates. Another positive factor for development of mortgage was entry of Spain into European Union. And introduction of euro (united European currency) has led to financial solidity in Spain with low inflation rate (about 3 %). The time of available mortgage had come and many foreign purchasers appeared at Spanish real estate market.

Today

Loan sum for foreigners in Spain comes to 50 — 70 % of real estate price. Mortgage credit applies to real estate.

Analytically loan period is calculated as follows: age of an applicant is taken from 70. Common term of credit is 15 — 25 years.

If you decided to obtain credit you should be ready for next charges:

  • Bank origination fee is 1,5 — 2 % of real estate price,
  • Independent expert’s fee for financial estimate of real estate to be purchased,
  • Charges for preparation of purchase for private property,

Accordingly purchaser of real estate must have finances in Spanish bank in amount of 40 to 60 % of price of the selected object.

Generally mortgage credit in Spain is contracted under floating rate from 3,8 to 4,2 %. In addition a bank spread is charged in amount of 0,7 to 1,2 %. Consequently annual mortgages receivable amount to 4,5 — 5,2 %.

Spain as well as other countries of European Union has a strict system of property valuation. Each bank has an agreement with tasaciorie (tasacion companies) to perform official property estimation. Mortgage credit is to be assigned on security of estimated property. Qualitative estimation allows to reduce risks of bank and raise chances for applicant.

Result of official expert valuation is an estimated cost. Real estate valuation is performed within 5-10 days. Approval of granting a credit is usually obtained within one to five weeks.