New Construction Mortgage

It is not necessary to apply for the new build mortgage when signing the contract of sale of the property (as is the case with those that are already built). Normally, you apply once the date of completion (actual or estimated) of the construction work is known.

When the time comes to apply for a new construction mortgage, a series of documents will be required (different, depending on the applicant's profile), the most common of which are as follows:

• National ID or Tax ID (NIF) (Tax ID) (NIF) (Tax ID) (NIF) (if you are a foreigner, the Foreigner ID (NIE) or the Passport number will be required).
• Contract of sale for the purchase of the home.
• Available balance (in the account of the holder(s).
• Recent bank statements.
• Proof of other income (if any).
• Proof of payment for any existing loans, if applicable.
• Documents related to self-employment and/or employment (paychecks and employment contracts, etc.).
• Social Security work history report, up-to-date.
  

There are no differences between the two mortgages, and fixed or variable rates can be contracted in both cases.  The main difference between buying a newly built home and one that has already been built is the method of payment. In the first ones, 10% is usually paid as a "reserve" and then other amounts are paid "on account" during construction and until the delivery of the property (which is when the new construction mortgage is formalised). For those already built (second hand), a contribution is usually made as a reserve or deposit, and the mortgage is formalized afterwards.

Mortgages for both new and second-hand properties are financed up to 80% of the purchase or appraised value (lesser of both).