Note
Loan to value for non-resident Spanish mortgages
Quick answer
Loan to value compares the loan with the appraised value of the home. Loan to price compares it with the price you pay. The Bank of Spain reports a market average loan to price of 80.4%, which is not a limit for non-residents. Lenders set their own.
Applies toBuyers who see loan-to-value figures quoted and want to know what they mean.
On this page: 9 sections
§ 1Two ratios
Loan to value, often written LTV, divides the loan by the value of the property as appraised for the lender. Loan to price divides the loan by the price in the deed. They are the same when the appraisal equals the price. When the appraisal comes in lower, a lender that lends on the lower figure gives you less than you planned. This page belongs to the chapter in the chapter on mortgages for non-residents.
§ 2What the central bank reports
The Bank of Spain’s spring 2026 stability report gives an average loan to price of 80.4% for the market, and says that the share of loans above four-fifths of the price has risen. These are market averages across all borrowers. They show what lenders do on average and do not set a limit for you. The report adds that the more leveraged loans tend to go to younger, lower-income borrowers.
§ 3Non-residents
We found no official statement of the loan-to-value ratio that lenders apply to non-residents. Lenders decide for themselves, and many lend a smaller share to buyers whose income is outside Spain. Treat any figure you read as an example and ask for your own offer. More on the deposit explains the cash that results from a lower ratio.
§ 4The appraisal
The lender orders an appraisal from an approved company, and the borrower pays for it, as the law provides. The mortgage process chapter explains the appraisal. The result drives the loan, so ask what happens if it falls short.
§ 5Reading an offer
The standard information sheet states the amount of the loan, the term, the interest rate and the costs. Check that the amount matches the share you expect of the price, and check what the sheet says about conditions such as insurance or products linked to the loan.
§ 6Risk
A high loan to value means a small cushion if prices fall. If you owe more than the home is worth, you cannot sell without bringing cash. A conservative ratio protects you as well as the lender.
§ 7Questions to put to a lender
Ask what value the lender will use, how the appraiser is chosen, what happens if the appraisal is lower than the price, and whether the ratio changes if you add a second borrower or more security. Ask for the answers in writing, and compare them across lenders.
§ 8Repaying down
As you repay, the ratio falls. After some years the loan may be a small share of the value, which can allow a better rate if you move the loan. The rates chapter explains early repayment and its costs.
§ 9More on this topic
A holiday home explained explains financing a holiday home as a non-resident and self-employed borrowers explained explains the questions a self-employed borrower faces.
Retired borrowers explained explains the questions retirees face and expats explained explains borrowing when your income is abroad or you live in Spain.
British borrowers explained explains borrowing as a British citizen and American borrowers explained explains borrowing as an American.
FAQRelated questions
What is loan to value?
The loan divided by the appraised value of the home, expressed as a percentage. If the appraisal is below the price, the lender may base its limit on the lower figure, which raises the cash you need.
What is the maximum for a non-resident?
We found no official maximum, and do not print one. Lenders decide, and they tend to be more cautious with borrowers whose income and assets are abroad. Ask each lender for its figure in writing.
Why does the appraisal matter?
Because it can differ from the price you agreed. A lender that lends on the lower of the two amounts will leave you to fund the gap. Ask early how the lender treats an appraisal below the price.
Sources
- Banco de España: Informe de Estabilidad Financiera, Primavera 2026, capítulo 4 (official source, opens in a new window), Overvaluation range, price growth, risksLast checked 17 October 2026
- Boletín Oficial del Estado: Ley 5/2019, de 15 de marzo, reguladora de los contratos de crédito inmobiliario (official source, opens in a new window), Articles 8, 10, 14 and 15 read; later articles not readLast checked 18 October 2026
Financial note. No rate is printed unless it comes from a dated, official publication. Capital is at risk, exchange rates move, and no lender, broker or provider is recommended here. Mortgage terms are set by each lender; ask a registered intermediary about yours.