How it works
The payment is calculated with the French amortization system, the most common in Spain for fixed-rate mortgages: from the amount you borrow (price minus down payment), the interest rate and the term, the payment stays constant. At first you pay more interest and less principal; over the years it flips.
How much you need to save to buy
The down payment isn't enough. To buy in Spain you need to have saved, at least:
- The down payment: usually 20% of the price (banks finance up to 80%).
- Purchase costs: taxes (transfer tax or VAT), notary, land registry and paperwork — between 10% and 12% of the price.
That's why the simulator shows the total savings you need upfront (down payment + costs) and estimates when you'll have them based on your saving pace. It's what most calculators don't tell you.
How much mortgage can you afford?
A prudent rule is that the payment shouldn't exceed 30-35% of your net income. Adjust price, down payment and term until it fits: a longer term lowers the payment but you pay more interest; a bigger down payment reduces payment and interest, but you need more savings upfront.
Frequently asked questions
How is a mortgage payment calculated?
With the French amortization system, from the amount borrowed (price minus down payment), the annual interest rate and the term in months. The payment stays constant over the life of the loan.
How much down payment do I need?
Banks usually finance up to 80%, so you normally need at least a 20% down payment, plus purchase costs (10-12%).
How much mortgage can I afford based on my salary?
As a general rule, keep the payment under 30-35% of your net monthly income.
How long will it take to save the down payment?
It depends on what you've already saved, how much you save each month and the return on your investments. The simulator estimates it by projecting your savings until they cover the down payment plus costs.
How much down payment do I need to buy a house in Spain?
Spanish banks usually finance up to 80% of the property value, so you normally need at least a 20% down payment, plus purchase costs of around 10-12% of the price (ITP or VAT, notary, land registry and paperwork).
What is ITP and how much will I pay?
ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax charged on second-hand home purchases in Spain. The rate is set by each autonomous community and ranges roughly from 4% to 10% of the deed price or the Cadastre reference value, whichever is higher. New-build homes are taxed with VAT (10%) instead.
