Unlike in some countries, the Spanish mortgage system has its own rules, formulas, and documentation requirements. Banks analyse your income, debts, credit profile, country of tax residency, and the type of property you wish to buy.

A proper pre-assessment ensures that you:

• Know your real borrowing capacity
• Avoid choosing properties outside your budget
• Prevent last-minute issues at the notary
• Keep negotiation power with sellers
• Save time (and money) during the buying process

A mortgage pre-assessment (also called pre-qualification) is an initial financial evaluation that determines:

• how much a bank is likely to lend you,
• what loan-to-value ratio (LTV) you can expect,
• whether you meet Spanish affordability rules, and
• whether your income profile fits the bank's policies.

• Review of your income and employment situation
• Analysis of existing loans and credit obligations
• Calculation of your maximum monthly instalment
• Estimation of the maximum mortgage amount
• LTV limit for non-residents or residents
• Identification of banks that best fit your profile
• Estimated interest rate conditions (fixed, variable, mixed)
• Timeline for approval and required documents

A high-quality pre-assessment prevents surprises when the bank performs the official study.

Spain has very specific lending rules that differ from the USA, UK, Canada, EU countries, and CIS regions. Understanding these rules early is important for every foreign buyer.

1. Spanish Banks Use Debt-to-Income Rules (DTI)In Spain, banks calculate your debt ratio based on net income, including debts from your home country.

Typically, the bank allows a maximum DTI between 30%–40%, depending on your profile.

This means the bank will verify that:

• (your total monthly debts + the new mortgage instalment) ≤ a safe percentage of your income.

2. Loan-to-Value (LTV) Is Lower for Foreign Buyers

Foreign non-residents usually receive:

• Up to 60–70% LTV.

Residents can obtain up to 80%, and in some exceptional cases, even up to 100%.

Knowing your expected LTV helps determine how much cash you need for:

• down payment
• taxes
• notary and registry fees
• bank fees

3. Every Bank Has Different Policies for Foreigners

Banks have internal rules about acceptable income types, currencies, tax residency, and required documents.

The pre-assessment determines which banks will accept your profile.

4. Preventing Delays in the Buying Process

The mortgage process in Spain takes time.

Without pre-assessment, buyers often:

• reserve a property they cannot finance
• lose negotiation power
• risk losing the deposit
• fail to meet notary deadlines

5. Required Before Choosing Your NIE Type

Some banks require a specific type of NIE.

• The pre-assessment helps you obtain the correct NIE to avoid delays.

1. Initial Consultation

We discuss your goals:

• budget
• type of property
• financial situation
• timeline

This helps define the correct strategy.

2. Income & Debt Analysis

You provide basic financial information:

• salary or business income
• existing loans
• credit cards
• rental income
• savings

We then calculate your maximum monthly mortgage installment based on Spanish DTI rules.

3. Borrowing Capacity Calculation

Based on your income and bank criteria, we estimate:

• maximum mortgage amount
• maximum property price
• expected LTV
• required cash contribution

This prevents you from looking at properties that exceed your real budget.

4. Bank Comparison

Not all banks treat foreigners the same.
We identify which institutions best fit your profile.

5. Documentation Checklist

We prepare a personalised list of documents depending on your residency, employment type, and chosen banks.
This avoids missing papers during the official study.

6. Timeline Planning

We align:

• NIE acquisition
• bank appointment
• property reservation terms
• notary signing deadlines
• money transfers

A well-planned timeline prevents last-minute complications.

7. Result: Pre-Assessment Summary

You receive a clear summary with:

• your maximum borrowing capacity
• estimated mortgage conditions
• required cash amount
• documents needed
• next steps

When preparing for a real mortgage, buyers must consider:

Bank Costs

• Property valuation (tasación): €300–€700
• Account opening fees (if applicable)
• Optional bank products (insurance)

Purchase Costs

• Taxes:
• ITP 6–11% (resale)
• IVA 10% + AJD 1–2% (new-build)
• Notary fees
• Land registry fees
• Lawyer or buyer’s agent (if hired)

The pre-assessment clarifies your full financial picture before committing to a property.

Case 1 — Buyer from the UK: Avoiding an Overpriced Purchase

A UK buyer believed he could obtain €600,000 mortgage based on his UK income.
After our pre-assessment, the actual borrowing capacity was €390,000 due to Spanish DTI rules.
Thanks to the evaluation, he avoided reserving a property outside his budget and later found a better option.

Case 2 — Entrepreneur from the USA: Complex Income Structure

An American self-employed client had irregular income and several business accounts.
The pre-assessment identified which incomes were acceptable for Spanish banks and which documents needed clarification.
The case was later approved smoothly because all documents were pre-organised.

Case 3 — Couple from Switzerland: Preparing Documents Before Visiting Spain

A couple from Switzerland planned a one-week trip to find a property in Barcelona.
Through pre-assessment, we prepared their full document set in advance.
When they arrived, the mortgage application was submitted immediately and they could reserve a property confidently.

A Spanish mortgage pre-assessment is one of the most important steps for foreign buyers. It ensures that you know your real borrowing capacity, avoid unnecessary risks, and enter the property market with clarity and confidence.

If you are planning to buy a property in Spain, Presta Estate can guide you through the entire pre-assessment and mortgage process — saving you time, money, and stress.

Contact Presta Estate to begin your personalised mortgage pre-assessment today.