Banks have managed to significantly recover from the 2008 crisis and they currently have funds which they are able to put towards lending up to 70% to nonresidents. The current mortgage situation has been the most favorable that it has been in the last decade, given that acquiring a mortgage has never been so easy. If you wish to purchase a luxury property in Mallorca this is the best time to do it.
The perfect setting
An element which should be considered at the time of purchasing a luxury property in Mallorca is the key interest rate. If it is low, you will pay less interest on your mortgage and this will be the case given that Euribor is set at -0,190%. To ease the understanding of this context, we find ourselves in a scenario where variable monetary policies are very favourable. This current boom in the taking out of mortgages in Spain doesn’t mean that the purchasing power would be less nor that the valuation of properties would be more unrealistic, but it does mean that the contracts are better than before the crisis. The most well informed buyers are already benefiting from this situation when it comes to buying a luxury property in Mallorca. Something which is good to know, is that the yearly property tax in the Balearics is around 3,45% of the purchasing price, that’s why experts recommend obtaining a long-term mortgage with low interest.
Advantages that come from acquiring a mortgage
Did you know that 10% of the richest people in the world have mortgages? A common motivation for acquiring a mortgage when buying a property is that it can lead to you having more liquidity so that you can invest in other valuable or financial products. When it comes to asking for a mortgage you should consider the following features:
- With Euribor being in negative and at a record low you can get a quote with low finance. All of the experts say that 2018 is one of the best years to get a mortgage.
- It is not a requirement to ask for the full cost of the property. Banks usually lend between 60 and 80 percent of the cost of the property. Thanks to this policy you are able to combine a part of your savings with the concession of the mortgage.
- There is always the option to make an early repayment on a partial or full amount of the mortgage. This way there is more flexibility with the payment of the operation and adjusts the economic situation of the beneficiary.
The different types of mortgages
When it comes to deciding between a fixed or variable mortgage, if you want to make the most of the Euribor situation which was named before, the most recommendable thing to do is to take out a variable type mortgage.
Purchase a luxury property in Mallorca with your real estate agency in Pollensa
We are currently in a very favorable situation in which you can easily obtain credit and some great interest rates. With a cash payment you will face less charges, but with a mortgage you will avoid losing your capital. At Heinsbroek Real Estate Boutique we have an ample catalogue in which you will find the most spectacular luxury properties in Mallorca and that will fit your expectations. Do not hesitate in contacting your real estate agency in Pollensa!