Why your house bank should be the first choice for real estate financing in Mallorca. And what you have to consider during the negotiation.
Spanish banks are slow, non-transparent and expensive. Read this post to learn more about these prejudices. It is therefore advisable to consult your own house bank when financing real estate in Mallorca. From my daily consulting practice I can distinguish different scenarios:
If a Volksbank or Sparkasse is your house bank: they require German securities . This can be, for example, the home that has been paid for in the meantime. The free land charge can be “replenished” again. Then the Spanish purchase contract for the property only serves as proof of the use of the funds.
Is your house bank a commercial bank: they often have cooperation partners in Spain. This can be Deutsche Bank in Spain, for example. Then the following applies: You will be referred to the Spanish branch. So no real help!
You don’t have a bank at all? Did you handle the financing of your German home through a broker or financing advisor? Then talk to him. He is certainly in contact with the German financing institutes that are financing in Spain.
Use house bank optimally for financing
My advice to everyone who wants to use their house bank optimally for financing: talk to your contact person for financing. Or talk to your financing partner. Discuss all the details of the planned financing. Consider existing land charges. Consider life insurance policies (surrender values!), home savings contracts and time deposits. Other savings such as savings certificates, fixed-income securities and shares can also be deposited as collateral for the financing.