One of the reasons I registered as an autónomo was the opportunity to get a mortgage.
Recently, my spouse and I obtained a mortgage in Valencia for 80% of the property value (2.95% annual interest rate). This was despite me being an autónomo for less than 8 months and without an annual tax declaration (renta). The entire process took less than a month and a half, from our initial visit to the bank and the question, “Is it possible to get a mortgage and what is needed?” to receiving the keys to the apartment. We also live in Spain under temporary protection for Ukrainians.
Briefly about the apartment: 120 square meters, 5 rooms (only one with a window facing an inner courtyard), a large living room, 2 bathrooms, a separate kitchen with a gallery, a balcony, and a building with an elevator. The apartment has partial renovations. The building itself is very well-maintained, with a complete renovation of the entrance, facade, and roof done a few years ago. The metro is a 2-minute walk away, and Valencia city center is 5 minutes by metro. I won’t disclose the price of the apartment.
The process could have taken less time if we hadn’t fought until the end for a 90% mortgage (which we had a good chance of obtaining).
The amount required to obtain the mortgage: 20% down payment of the property’s cost, 9% ITP tax (property transfer tax), €4000 agency fee, around €1000 for notary services, plus up to €1000 for various small expenses (some of which will be refunded later).
Overall, I wouldn’t say the entire process was very difficult, but rather moderately so. There were many places where both my spouse and I needed to be present with our young son, which sometimes made things challenging (viewing apartments, some bank visits, notary, etc.). Additionally, since I don’t speak Spanish, I had to rely on Google Translate and ChatGPT, which complicated the process significantly.
The entire process of obtaining a mortgage is described in detail below, and I hope my experience will be useful to you.
A small note: If you’re planning to register as an autónomo, these links may be useful:
Initially, I planned to write the article in the format of a diary to describe in detail what exactly and when I had to do. However, during the process, I realized that the essay format suits much better. There turned out to be too much information, and I wanted not just to list events but also to share my thoughts.
Important disclaimer: I am not a real estate or mortgage expert. This essay describes my subjective experience, with some subjective recommendations and reflections. Your experience may differ, and I may have overlooked something or made mistakes.
As I mentioned at the very beginning, we didn’t even plan to get a mortgage anytime soon. We wanted to try to do it, at best, next year. But we accidentally managed to do it now.
My spouse and I always try to adhere to the probability approach, especially in matters where many say “ impossible,” “it won’t work,” etc. Between “zero chances” (when you don’t try at all) and “very small chances,” there is a giant gap. If there is an opportunity to try and use small chances, you must do it, as we were convinced once again.
Thanks to several people from the chat who helped with some questions I didn’t understand and shared their successful mortgage cases.
If the information about the mortgage is useful to you and you want to thank me for my work, visit the secret section.
My spouse practically forced me to go to the bank - just to ask if it would even be possible to get a mortgage and what would be needed for that. At that moment, we didn’t even hope to do it anytime soon. The purpose of the visit was to preliminarily understand the main nuances to try to get a mortgage next year.
Among my acquaintances, there were two successful cases of obtaining a mortgage at CaixaBank, so I went there first.
The bank said that with my income and existing documents, it would be possible to try applying for a mortgage. The list of required documents:
All these documents can be easily provided if you are an autónomo. But my problem was that I didn’t have an annual declaration (renta) for the previous year (2023) because I started autónomo activity in 2024. Instead of the annual declaration, I could only provide quarterly declarations for the 3 quarters of the current year. This is a serious problem that significantly reduces the chances of mortgage approval.
The manager explained two possible mortgage options:
You first need to find a specific property and then come to the bank to apply for a mortgage.
Also, the manager printed me a 30-year mortgage simulation with a 10% down payment. This simulation showed monthly payments, mortgage interest, etc.
That same evening, my spouse and I started searching for an apartment. The selection on bank property websites was small, and none of the options met our criteria. Therefore, we started searching on Idealista and immediately sent several viewing requests.
We created a detailed table to conveniently track all the options we had already viewed or planned to view. The table included the following information: price, link to the property, contacts, district, area (living/total), number of rooms, number of bathrooms, presence of a balcony/terrace, floor, construction year, scheduled viewing date, and our comments.
A small digression to explain why events unfolded so quickly afterward.
During our first year living in Valencia, my spouse and I thoroughly explored almost all the neighborhoods in Valencia, and we developed a clear understanding of which neighborhoods we would like to live in and which we would avoid at all costs. Also, by the time we started searching for an apartment, we had a very good eye for evaluating options and a clear understanding of the criteria to consider, what to pay attention to, and the current market prices. Over the year, we watched a lot of real estate content and regularly monitored listings on Idealista.
Initially, we wanted to search for housing in two specific neighborhoods but later settled on one (the one we liked the most). We didn’t consider ground or first-floor apartments because they tend to have less light, more street noise, car exhaust and other odors, potential humidity problems, and pests like cockroaches. We also decided to look for a building with an elevator, an apartment with 4-5 rooms (preferably with 2 bathrooms), and a balcony or terrace.
On the first day, we viewed three apartments in one neighborhood. We really liked one of them, while the others did not appeal to us. Each viewing took about half an hour; at this stage, we only needed a superficial familiarity with the options. We immediately “documented” all our impressions of the apartments with ChatGPT so as not to get confused or forget anything later.
The next day, we viewed two more apartments in the same neighborhood. We decided to buy the apartment we liked from the day before.
We took another walk to the building and caught some residents near the entrance to ask them detailed questions about the building and the neighbors (noise levels, any problems).
From the moment we submitted a request on Idealista to the moment we decided to go with that apartment, 3 days had passed. I think we couldn’t have made a quicker decision. Even when searching for a rental apartment, it took us about a week.
Before making a deposit for the apartment, we decided to view it one more time. This time, we brought along a specialist who works in renovations and knows this area well. Finding such a specialist turned out to be surprisingly difficult, as not everyone understood our request and what exactly we needed.
He helped us thoroughly inspect the entire apartment, which took an hour and a half. I recommend not scheduling long viewings during siesta hours - our realtor got very angry and eventually said, “Wrap it up!” :)
The purpose of this inspection was to identify any critical issues that would make the apartment unsuitable for purchase or that could be used as leverage to lower the price.
We were lucky, as the apartment owner was also present along with the realtor, and they were able to answer many of our questions. In the end, the renovation specialist and we were satisfied; the deficiencies we found were minor. Moreover, we managed to negotiate the price down by €10,000.
After the viewing, we immediately went to the agency’s office to reserve the apartment and leave a deposit. Signing the Arras took about another hour, and we left a deposit of €3,000.
Arras is a preliminary contract or deposit agreement used in Spain when purchasing real estate. This document establishes obligations between the seller and the buyer before the main purchase agreement is signed.
In our Arras, it was specified that if no banks approved our mortgage, we would get the €3,000 deposit back.
Overall, I have a very basic understanding of this matter, so I had to consult ChatGPT, search for information on YouTube, and ask friends who had bought apartments in Valencia. Additionally, we consulted a realtor acquaintance before reserving the apartment to ensure the price was fair and to get advice on negotiating.
I listed the criteria we paid attention to when viewing the apartment. The list doesn’t claim to be exhaustive, but I think it’s a good starting point.
In the afternoon, the realtor sent me the Nota Simple (a document with information about the property), after which I needed to go to the bank. However, it was already late in the day, and there wasn’t enough time before the bank closed, so I had to postpone the visit.
My spouse and I went to the bank with all the documents and submitted the mortgage application. There was a lot to sign, and the process took more than an hour. The manager was surprised at how quickly we had managed to find an apartment in just a few days. :)
That was it - from this point on, we just had to wait for the bank’s decision.
The next day, the manager contacted me and asked me to come to the bank. It turned out the bank had already approved a mortgage for both 80% and 90% coverage. However, to get 90%, we needed to apply for the government program IVF Vivienda (this is done online and is relatively quick).
I was happy but skeptical because I didn’t know what this program entailed or how easy it would be to qualify. Unfortunately, my spouse and I didn’t meet one of the criteria: having two years of officially documented residence in the Valencian Community (with registration). We had only one and a half years.
From this day, we could sign the 80% mortgage at any time, as it was already approved. However, we decided to fight for the 90%, and this fight lasted for 18 days. If we had agreed to the 80% mortgage right away, the entire process would have taken less than a month. But we really wanted to secure the 90%.
The manager informed me that there was a chance to get the 90% mortgage without using the IVF Vivienda program if I opened an account with the bank and transferred some funds into it. Additionally, my current credit rating (RISA) was 3.1. If I could lower it to 2.9, the bank would be able to approve the 90% coverage.
RISA credit rating is CaixaBank’s internal rating system that helps the bank assess risks related to the borrower’s potential inability to pay. Factors influencing the rating include: credit history, current financial obligations, income and job stability, personal data (age, marital status, number of dependents), and the borrower’s history of interactions with the bank (receiving salary payments, purchasing banking products).
If I had known this in advance, I would have opened an account with CaixaBank instead of Santander when registering as an autónomo. The chances of securing a 90% mortgage would have been higher.
I opened an account and transferred a little over €20,000 into it the same day (the manager confirmed this amount was sufficient). Now, we just had to wait a couple of weeks for the beginning of the next month when the credit rating would be updated. I was also asked to redirect my autónomo payments to CaixaBank instead of Santander.
On Thursday and Friday, I also visited all the other major banks (up to 10 in total). Almost all of them immediately rejected me due to my lack of a 2023 Renta (annual tax declaration). In one bank, the manager tried to submit the application, but she called back two hours later to inform me of the rejection.
The manager advised me to open a savings account. He said it might increase my chances of recalculating the credit rating. He also mentioned that the account could be closed in about a month (for a fee of approximately €20). I decided to try this option as well.
The bank manager contacted the realtor to schedule a visit by the appraiser for the apartment valuation. The appraisal cost around €300, and the bank promised to refund this amount if the mortgage was signed.
The bank requested a preliminary agreement confirming the deposit payment (Arras).
Without waiting for the beginning of the next month, the manager attempted to recalculate my credit rating in advance - but nothing changed.
I signed the authorization for the appraisal and provided additional documents confirming the absence of debts to Hacienda and Seguridad Social.
We agreed with the realtor and the seller to wait until the 5th of the next month to recalculate the credit rating. If the 90% mortgage wasn’t approved by then, we would proceed with the 80% mortgage.
However, there was a small nuance: if we ultimately didn’t complete the mortgage process, the €3,000 deposit would not be refunded. This was because, by the 5th of the next month, more than 20 days would have passed, as stipulated in the agreement. We decided to take this slight risk.
The appraiser visited the apartment to confirm its market value.
The appraisal was completed, and the apartment’s value turned out to be higher than the purchase price. This was a good sign because if the appraised value had been lower, the bank would base the mortgage on its appraisal rather than the actual purchase price.
The manager suggested preliminarily arranging life insurance, home insurance, and a security system, with billing starting closer to the end of the next month (after signing the mortgage). This was also supposed to improve our chances.
These services lower the mortgage interest rate and are mandatory for the first three years (according to the manager).
Of course, it is more advantageous to take as few additional services as possible, as the total amount paid will be lower (even considering the higher mortgage interest rate).
It’s important to note that home insurance is mandatory for the entire mortgage term. However, you are not obligated to purchase it directly from the bank; you can buy it from any provider as long as it meets the necessary criteria (these are specified in your mortgage agreement).
I went to the bank to recalculate the credit rating. Unfortunately, it didn’t improve…
This meant that the bank could only provide 80% financing for the mortgage. My feelings were mixed: on the one hand, I was glad we could move forward; on the other hand, 80% was less comfortable for us compared to 90%.
I immediately signed the necessary documents for the 80% mortgage. On the same day, the bank manager contacted the realtor to arrange a meeting with the notary for the final signing of the purchase agreement, approximately 10 days later.
I closed the savings account I had opened earlier to improve my credit rating.
I asked the manager for the exact amount that should be in my account on the day of the transaction. It includes:
A pleasant surprise was that the ITP tax would be slightly lower than 10% because my wife is under 36 years old and unemployed (half of the tax will be paid by me at a 10% rate, and the other half by my wife at a reduced rate of 8%).
At the bank, we signed many documents confirming the mortgage terms and reviewed an instruction guide with information about penalties and payment delays.
The strangest day of the entire process, which stood out significantly from the rest.
We needed to attend a preliminary meeting with the notary. There are usually two meetings with the notary: the first is preliminary, where the mortgage terms are explained, and you are asked to complete a questionnaire to confirm that you understand everything correctly; the second is the final signing by the buyer and seller, with the handover of the keys.
We were warned that we would need to bring a translator to the final meeting (unfortunately, we haven’t learned Spanish yet).
I thought that it wasn’t necessary to bring a translator to the preliminary meeting - it’s just preliminary, after all. I also assumed there was no need to bring any documents :) The notary was, to put it mildly, surprised by this approach. My wife, to put it mildly, was as well. I was surprised too - in Ukraine, I would never have done such a thing, but after two years in Spain, I’ve become a bit relaxed.
Fortunately, we managed to resolve everything by sending the documents via email and using ChatGPT as a translator. But I don’t recommend repeating our experience. As the notary said, “You should ALWAYS bring all documents to such meetings.” We managed everything in about half an hour, completed and signed the questionnaire, and then went for coffee.
This is usually handled by the realtor, but I’m used to controlling everything myself. She promised to provide all necessary receipts and certificates to confirm that there were no debts for water, electricity, gas (rare, but our apartment has gas), or the homeowners’ association fund.
There were no problems with water, electricity, or gas. Even if debts exist, they remain with the previous owner; theoretically, you are not responsible for them and won’t need to cover them. However, with the homeowners’ association fund, it’s more complicated. By law, debts from the past three years (if any) are transferred to you. Therefore, it’s crucial to check the Certificado de estar al corriente de pago in advance, which confirms there are no outstanding debts to the homeowners’ association (Comunidad de Propietarios).
This was the day of the final document signing.
We arranged to meet the seller 45 minutes before the notary appointment to inspect the apartment one last time. We needed to make sure that the apartment was still in the same condition as during the last viewing. During earlier viewings, we had asked the realtor whether the furniture would remain in the apartment, and we were told, “If you want, they’ll leave the furniture.” We decided to keep the furniture because shortly after the signing, our relatives were planning to visit, and we wanted to host them in our new apartment.
We were in for a surprise. To skip ahead: the day turned out to be stressful.
When we entered the apartment before the signing, we discovered that almost all the furniture and the refrigerator were gone. We spent about an hour figuring out what to do.
Unfortunately, the realtor had forgotten to inform the owner to leave the furniture, so they removed everything, and some of it was even discarded. After long discussions, we agreed that the seller would leave a deposit with us, and we would sign the purchase agreement. Two days later, the seller would deliver three beds with mattresses, a desk, a dining table, six chairs, and a refrigerator to the apartment, after which we would return the deposit.
After the inspection, we proceeded to the final signing with the notary - this time accompanied by a friend who speaks Spanish well. :) And we decided to bring our documents with us; we definitely needed them today!
The signing took an hour and a half, as we meticulously double-checked and clarified everything before signing anything.
We received the keys, and now the “mortgage process,” which took about a month and a half, was finally behind us… almost.
After the signing, the realtor transferred the utility accounts (electricity, gas) to our name. Transferring the water account and the homeowners’ association fund had to be done on another day (it took about an hour, with the realtor accompanying me to the offices and helping me handle everything).
You’d think everything was done, and we could relax. But no, another problem surfaced. After we signed all the documents at the notary, the bank manager made the transfer to the seller from my account within an hour. For some reason, he transferred €2,000 more than was necessary.
The next day, I had to go to the bank to sort it out. Another error was discovered, this time in the preliminary agreement (Arras). When we signed it, I made a €3,000 deposit (via bank transfer to the agency’s account). At some point, the bank asked me to send the Arras, but the version I had on hand only had my signature (don’t ask why - human error and exhaustion that day were to blame). I asked the realtor to send me a document with her signature. She did, but for some reason, it stated a deposit of €1,000 instead of €3,000.
I didn’t pay attention to this discrepancy (again, don’t ask why - it was my mistake).
As a result, the bank transferred €2,000 extra to the seller because it recorded that I had made a €1,000 deposit instead of €3,000.
I had to spend another day sorting this out with the realtor and the seller, so they could double-check everything.
Two days later, we met to:
The seller transferred €2,000 to my account with the comment “Devolución por exceso de transferencia” (“Refund for transfer excess”). I also insisted that we sign a document stating that the bank had mistakenly transferred €2,000 more to the seller’s account, that the seller acknowledged this, and that he refunded the money via bank transfer to a specific IBAN. Additionally, it stated that neither party had any claims against the other. I’m not sure how necessary this was, but that’s my approach.
The situation with the furniture was amusing - I was sure the agency would hire movers. But no, they decided to bring everything themselves (the former owner, his wife, the realtor, and her supervisor) :) I joined in too, so we managed quickly overall. Thankfully, everything fit in the elevator.
By Wednesday evening, the entire process was finally complete. Nobody owed anyone anything, and we could finally relax. The next project is renovating the apartment. :)
I carefully read the purchase agreement (100 pages), which also describes the mortgage terms. Here, I will outline the most interesting points. Of course, this may differ from your agreement with your bank, but I think it will be a useful guide to understand the overall picture.
Thank you for reading to the end. I truly hope this information was helpful and saves you from potential mistakes. I wish you a smooth mortgage process!
A reminder: I have a very detailed guide on registering and managing autónomo. Below are some useful links if you are already an autónomo or plan to register in the future:
Take care!