Answer a few questions and we'll work out the maximum price a bank would lend you with a 2.5% fixed-rate mortgage over 30 years.
* Approximate calculation for resale in Comunidad de Madrid. Notary and registry fees are estimated based on the price; the final amount may vary depending on the notary, agency and the specifics of the transaction.
Primary residence: 90%. Second home: 70%.
35% if income is below €6,000/month, 45% if ≥ €6,000.
Indicative rate. It varies by profile and market.
Capped so it doesn't go past age 75 at maturity.
Indicative calculation. Does not include insurance or discounts.
You need at least 20-30% of the property price in savings: 20% for the deposit (if it's your first home) and between 8-12% for the purchase costs (taxes, notary, registry, agency and valuation). For example, for a €200,000 house you'd need between €40,000 and €60,000 saved depending on the autonomous community.
ITP (Property Transfer Tax) is the tax you pay when buying a resale home. It varies by autonomous community: from 4% in the Basque Country up to 10% in Catalonia, Valencia or Cantabria. Madrid applies 6%, Andalusia 7% and Aragon 8%. On a new build you don't pay ITP, but VAT (10%) + AJD (~1.5%).
Yes, and you also get advantages. Most autonomous communities offer reduced ITP rates for young buyers (under 35-36). For example, in Andalusia the ITP drops from 7% to 3.5%, in Madrid from 6% to 4%, and in Murcia from 8% to 3%. This simulator automatically calculates the reduced ITP when the borrower's age is under 35.
The general rule banks apply is that the instalments of all your loans (including the mortgage) shouldn't exceed 35% of your net monthly income. If you earn €2,500/month, your maximum instalment would be €875 (including other debts). With income above €6,000/month some banks allow up to 45%.
It depends on your profile. A fixed-rate mortgage gives you peace of mind: you always pay the same instalment regardless of how the Euribor moves. The variable one starts with a lower instalment but can go up (or down) every 6-12 months. In a high-rate environment, fixed may be better; if rates fall, variable benefits you. BuscoHipotecas helps you compare both options.
The main costs are: notary (~€1,000), property registry (~€600), valuation (~€425), agency (~€450), and the taxes. On a resale you pay ITP (4-10% depending on the region). On a new build you pay VAT (10%) + AJD (~1.5%). In total, the costs range between 8% and 13% of the property price.
Here we explain each term step by step, as if it were your first time looking for a mortgage. No jargon, no complications.
It's what the house or flat you want to buy costs. But beware: the price of the house is NOT everything you'll spend. You also have to add the deposit and the purchase costs (taxes, notary, etc.). That's why we say buying a €200,000 house really costs around €260,000.
First home: where you're going to live. We finance up to 90% of the price (you put in 10%).
Second home: a holiday or investment home. Banks are more cautious and only finance up to 70% (you put in 30%). This means you need more savings for a second home.
It's the percentage of the house price that the bank lends you. If the LTV is 80%, the bank lends you 80 of every €100 of the price. The rest (20%) you put in as a deposit. The higher the LTV, the fewer savings you need, but the harder it is for the bank to approve it.
New build: a newly built house, bought directly from the developer. You pay VAT (10%) + AJD (~1.5%).
Resale: a house that already had another owner. You pay ITP (Property Transfer Tax), which varies by autonomous community (from 4% to 10%). Depending on where you buy, one may work out more expensive than the other in taxes.
It's what you earn «clean» each month after taxes and Social Security. If the payslip you receive in your account is €2,500, that's your net income. If two of you are buying, add both net salaries together.
Everything you already pay each month on a fixed basis: car loan, credit cards, other personal loans, alimony... The bank takes these debts into account because they reduce your capacity to pay the mortgage. Do NOT include rent (because you'll stop paying it).
The money you have saved and can use for the purchase. With your savings you have to cover: the deposit (20% of the price) + the purchase costs (~10-15%). If you don't have enough savings, you'll need to save more before buying.
Banks set a limit that the mortgage must be paid off before you turn 75. If you're 40, the maximum term would be 35 years. If you're 55, only 20 years. A shorter term means higher instalments, which affects how much they can lend you.
It's the percentage the bank charges you each year for lending you money. If the rate is 3%, for every €100 you owe, you pay €3 of interest a year. It's the «pure» cost of the loan, not counting extra costs like insurance or fees.
It's the percentage of your monthly income that goes towards paying debts (including the future mortgage). The usual limit is 35%: if you earn €2,500/month, you shouldn't pay more than €875/month across all your debts. If you earn more than €6,000, some banks allow up to 45%.
It's your own money that you put towards buying the house. If the bank lends you 80%, you put in the remaining 20%. For a €200,000 house, the deposit is €40,000. It's your «skin in the game» — it shows the bank that you're taking a risk too.
These are the mandatory costs on top of the house price:
Viable: you have enough savings and your instalment doesn't exceed 35% of your income. Go for it!
Tight: you're close to the limit. It might work out, but it's snug. It's wise to keep a buffer.
Difficult: you're short on savings and/or the instalment is too high for your income. You need to save more, reduce debts or look for something cheaper.
Cash: you have enough money to buy without needing a mortgage.
What you pay the bank each month. It includes a part that reduces your debt (principal) and another that is the cost of the loan (interest). It's a fixed payment (on fixed-rate mortgages) that lasts the entire life of the mortgage.
If you're short on savings for the deposit + costs, this section tells you how long you need to save €X/month to reach the goal. It's a tool to plan your path towards the purchase.
ITP (Property Transfer Tax): the tax you pay when buying a resale house. It varies by autonomous community (from 4% in the Basque Country to 10% in Catalonia, Valencia or Cantabria).
VAT: the general tax. On a new build it's 10% of the price.
AJD (Stamp Duty): an additional tax (~1.5%) paid only on new builds, alongside VAT.
It matters because ITP changes depending on where you buy. In Madrid it's 6%, in Catalonia 10%. That difference on a €200,000 house is €8,000 more or less in taxes. That's why the simulator asks for your region.
* Indicative calculation. Does not include insurance or discounts. The actual instalment and price may vary depending on the lender, product bundles and specific conditions.