All the steps you need to take if you're going to buy a house
How to choose your new home and the ideal location?
Obtain financing for your next mortgage
Preparatory steps and points you need to factor in when buying a home
Before you start viewing properties, the smart thing is to look inwards: at your finances Buying a home is not just a matter of the sale price; it's understanding your long-term borrowing capacity and the resources you have available today.
Analyse your financial health and saving capacity
For a bank to grant you a mortgage, you generally have to contribute 20% of the value of the property (as the amount you borrow is usually 80%) plus 10-12% to cover expenses.
The golden rule: Your monthly outgoings (including the future mortgage) should not exceed 35% of your net income.
Tip: Review your current fixed expenses and figure out how much you could allocate to your mortgage repayment instalments without giving up your quality of life.
Draw up a real budget for your future home
The price you see on property websites is just the first step. A real budget must include the price of the property, the associated taxes and a small reserve fund to cover possible initial renovations or furnishings. You need to know exactly how much you can spend as this will save you time visiting homes that don't match your financial reality.
New build or pre-owned?
This decision will change completely the steps you need to follow to buy a home:
New build: You have a brand-new home, but you pay 10% VAT (in mainland Spain and the Balearic Islands).
Pre-owned: The price is usually more competitive, but you have to pay Stamp Duty (ITP, in its Spanish initials), which varies between 6% and 10% depending on the Autonomous Community. For young people under the age of 35 it can be between 4% and 5%.
How to make the best choice of your new home and the surrounding area
Once you have drawn up the budget, the house-hunting phase begins. It's time to filter not only by what takes your fancy, but also what you really need in the mid and long term.
Key factors when reviewing visits to properties
Don't judge a book by its cover. When you visit a property, it's crucial to review technical aspects that can save you future costs:
State of fixtures and fittings: Electricity, plumbing and HVAC.
Orientation and natural light: This is key for energy saving and well-being.
Insulation: Windows and possible damp patches on walls.
The importance of the location and local amenities
The value of a home also depends on what lies beyond its four walls. Check out how close it is to roads and public transport, health centres, schools and how safe the area is. Think about the potential revaluation of the neighbourhood if in the future you decide to sell.
Steps to follow to buy a home with legal certainty
Before you hand over any money, you need to make sure that the property does not have any hidden “charges”. This is one of the points where a bank's advice is most valuable.
Necessary documentation to verify the property's status.
To buy with total peace of mind, always ask for:
matricula-
1 The Nota Simple from the Property Registry to confirm the real owner and that there are no charges or encumbrances on the property.
It is also essential to ask for the certificate that the property is up to date with payment of fees to the community of owners.
It is also essential to ask for the certificate that the property is up to date with payment of fees to the community of owners.
2 The latest receipt of payment of the property tax (IBI).
3 The latest ITE (Technical Building Inspection report). This latter document is the key to detecting possible undisclosed mandatory maintenance fees or service charges (derramas ocultas), thus avoiding unexpected major expenses that the vendor may be trying to omit.
4 The earnest money contract (contrato de arras) and how to secure the property.
This document is the official undertaking to buy/sell the property. It defines the price, the deadline for signing in the presence of a notary and the penalties should either party pull out. This step is indispensable to apply formally for the mortgage.
This document is the official undertaking to buy/sell the property. It defines the price, the deadline for signing in the presence of a notary and the penalties should either party pull out. This step is indispensable to apply formally for the mortgage.
Simulate the purchase costs and find out how much you need to save
Find the mortgage that best matches your profile.
At Banco Sabadell we know that no two buyers are alike. That’s why the next step is to choose how you're going to pay for your home.
With the peace of mind of knowing that you will pay the same instalment every month.
Find out more
Variable-rate mortgage
With a monthly instalment that is linked to the evolution of the market.
Find out more
Mixed mortgage
Unaffected by changes at the beginning, but flexible to adapt to the market afterwards.
Green Mortgage
Build or energy renovate your first or second home.
Self-promotion Mortgage
Draw down funds from your loan as your home progresses
Non-resident Mortgage
For those living abroad and wanting to buy a second home.
Your mortgage from application to notary office
How long does the process of signing the deed and handing over the keys take?
From the point where you find the home to when you sign the deed, the process usually takes between 45 and 60 days, depending on how quickly the valuation and the bank formalities are carried out.
What taxes do I have to pay depending on the Autonomous Community?
Whereas VAT is a national tax (10%), stamp duty (ITP) on pre-owned properties varies according to the region (from 6% in some cases with a rebate to 10%), and for young people up to 35 years old, it can be as low as 4% or 5%. We’ll help you to calculate it depending on your location.
What are the differences between arras confirmatorias, penitenciales and penales?
- Confirmatorias - Confirmatory deposit: This is an advance of the total price. If either party pulls out, the other may demand via a court order the fulfilment of the contract or its termination with compensation.
- Penitenciales - Withdrawal (the most common type): This allows either party to withdraw from the contract in return for a financial penalty. If the buyer changes their mind, they lose the deposit, if the seller does, they have to return double the amount.
- Penales: Penalised: This works as an amount of compensation that is set in advance. This does not allow one to “buy” the right to withdraw; the aggrieved party may demand both the financial penalty and the fulfilment of the contract.
What is the purpose of the nota simple and where can I get one?
This is the document that guarantees that the vendor is the lawful owner and that there are no charges on it (such as seizure of assets or unpaid mortgages). You can request one online from the Property Registry. It's an indispensable step before paying a deposit.
Who pays the cost of a mortgage in 2026?
Following the Mortgage Act, the bank bears most of the cost of formalising the mortgage: Fees of the Property Registry, Notary, Tax Consultant, and the Impuesto de Actos Jurídicos Documentados (Tax on Property Transfers and Documented Legal Acts - AJD, or stamp duty as it is known in the UK). The buyer normally only bears the cost of appraising the property.
What is the ITP and when is it paid?
The Impuesto de Transmisiones Patrimoniales (Property Transfer Tax - ITP) is paid exclusively on the purchase of pre-owned properties. The percentage varies depending on the Autonomous Community (between 6% and 10%), and for young people up to 35 years old, it can be as low as 4% or 5%. Must be settled within 30 working days of the signing of the deed.
What happens on the day of signing before the notary?
The two main documents are signed: the deed of sale and the mortgage deed. The notary reads the contracts to make sure that both parties understand the terms and conditions, the cheques are delivered to the vendor and, finally, you receive the keys to your new home.
¿Cuánto dinero debo tener ahorrado antes de empezar?
You generally need to have saved up between 30 and 32% of the value of the home. 20% is to cover the part that the bank doesn't usually lend (most mortgages cover 80%) and the remaining 10-12% is to cover taxes, notary fees, registration and conveyancing.