When buying property in Lanzarote, various mortgage options are available to both residents and non-residents. Local banks offer competitive interest rates, making property investment in Canary Island accessible to a wide range of buyers. Getting a local mortgage involves the bank conducting a valuation of the property, which incurs valuation fees.

Non-residents can typically borrow up to 60% to 70% of the property’s purchase price or bank valuation, whichever is lower. Residents may secure mortgages for up to 70% of the property’s value. These loan-to-value ratios are in line with general Spanish mortgage practices for foreigners.

It’s important to note that the mortgage application process in Spain can be complex, especially for non-residents. Banks will require proof of income, financial stability, and a Spanish NIE number. Additional costs, such as property appraisal fees, notary fees, and mortgage stamp duty, should be factored into your budget.

Fixed, variable, and mixed-rate mortgages are available, allowing buyers to choose the option that best suits their financial situation and risk tolerance. Working with a specialized mortgage broker can help navigate the process and secure the most favorable terms.