For many families, a mortgage loan is the biggest financial commitment of their lives. Spanish law on real-estate credit agreements requires the notary to advise you personally and free of charge before signing, to make sure you understand the terms of the loan. In addition to new mortgages, we authorise mortgage cancellations, transfers (subrogaciones) and amendments (novaciones).
What you are signing
A mortgage actually involves two things: a loan (the bank lends you money and you undertake to repay it with interest) and security over the property (if you do not pay, the bank can enforce it). The key points to understand are:
- Capital, term and instalments: the amount borrowed, the number of years and your monthly payment.
- Interest rate: fixed, variable (reference index plus margin) or mixed. With a variable rate, your instalment will change with the index.
- Fees: opening fees, early repayment fees or rate-change fees, within legal limits.
- Linked or bundled products: insurance, salary deposit, cards… and how cancelling them affects the interest rate.
- Early termination: in which cases of non-payment the bank can claim the whole debt.
- Mortgage liability and valuation: the maximum amounts secured by the property and the value for any auction.
- Costs: by law, the bank pays the notary fees for the loan deed, the registration and the processing agency; the borrower pays for the valuation.
Transactions and documents
Identity documents for the parties are listed below, in the common section.
Mortgage loan and transparency certificate
At least ten calendar days before signing, the bank must give you the European Standardised Information Sheet (FEIN), the Standardised Warnings Sheet (FiAE), the draft contract and information on costs and insurance. You must then attend the notary’s office at least the day before signing. The notary checks that you received the documents in time, answers your questions and records this in a free notarial certificate (acta de transparencia).
Documents
- Pre-contractual documents from the bank (FEIN, FiAE and draft contract); the bank usually sends them directly to the notary’s office electronically.
- Property valuation.
- If the home is being bought at the same time, the documents for the purchase.
- Linked insurance policies, if any.
Mortgage cancellation
Paying the last instalment does not remove the mortgage from the Land Registry. For the property to be free of charges, the bank must execute a deed of cancellation, which is then registered.
Documents
- Certificate from the bank confirming a zero balance.
- The mortgage deed or its registry details.
- The bank usually coordinates the signing with the notary’s office; you may choose the notary.
Mortgage transfer (subrogación)
There are two types: debtor substitution, when the buyer of a home takes over the seller’s mortgage with the bank’s consent, and lender substitution, when you move your mortgage to another bank offering better terms.
Documents
- The current mortgage deed.
- Certificate of outstanding debt from the current bank.
- Binding offer from the new bank (for lender substitution).
Mortgage amendment (novación)
Changing the loan terms with the same bank: extending or shortening the term, changing the interest rate, increasing the capital or releasing a borrower or guarantor.
Documents
- The current mortgage deed.
- New terms agreed with the bank and pre-contractual documents, where required.
Taxes and costs
- Home mortgage loan: Stamp Duty is paid by the bank. The borrower pays for the valuation.
- Cancellation: notary and registry costs are generally borne by the owner requesting the cancellation.
- Transfers and amendments: tax and fee reductions apply when improving the terms of a home mortgage. We will advise you in each case.
Frequently asked questions
Do I pay anything for the transparency certificate?
No. The pre-signing certificate is free for the borrower.
Can I choose the notary even if the bank suggests another?
Yes. The borrower has the right to choose the notary, both for the pre-signing certificate and for the loan deed.
Can I repay early?
Yes. The law allows full or partial early repayment, subject to the maximum fees agreed within legal limits.
What happens if I stop paying?
The bank can only claim the entire debt (early termination) once the arrears reach the thresholds set by law. If you are having difficulties, talk to your bank as soon as possible.
Identity documents (common to all transactions)
Individuals
- Valid ID card, NIE or passport.
- Marital status and, if married, your matrimonial property regime (and any marital agreement deed).
- Foreign nationals need an NIE (foreigner identification number) for transactions with tax implications.
Companies
- Deed of incorporation and current articles of association, recorded at the Commercial Registry.
- The company’s tax ID (NIF).
- Deed appointing the director, or the representative’s registered power of attorney.
- Details for the beneficial ownership declaration.
If you act on behalf of someone else
- Authorised copy of the notarial power of attorney.
This information is for guidance only. Depending on the circumstances, the notary’s office may request additional documents.