What is the French amortization system?

The French (or annuity) system uses a fixed monthly payment throughout the loan. Early payments are mostly interest, while later payments are mostly principal. It's the standard system used by banks in Spain and most of Europe.

What LTV ratio do banks accept?

Most Spanish banks finance up to 80% LTV for primary residences (meaning you need at least 20% down). For second homes or investment properties, the limit is usually 60-70%. A lower LTV often gets you a better interest rate.

Fixed or variable rate — which is better?

Fixed rates give you payment certainty but are typically higher. Variable rates (usually Euribor + spread) start lower but can rise. In a low-rate environment, locking in a fixed rate protects you from future increases.

What extra costs should I expect?

Beyond the down payment, expect 10-12% in closing costs: ITP or VAT (depending on new vs. second-hand), notary fees, land registry, and bank fees (appraisal, arrangement fee). Budget for these separately.

Mortgage Simulator

Enter your property details to see your monthly payment, total cost, and year-by-year amortization schedule.

Property price

Property price (€)

Down payment (%)

Interest rate (annual)

Interest rate (annual) (%)

Term (years)

Mortgage breakdown

Enter your property details to see your monthly payment, total cost, and year-by-year amortization schedule.

How the mortgage simulator works

Enter the property price, your down payment, the interest rate, and the loan term. The calculator uses the French amortization system to compute your fixed monthly payment.

Enter the property price and down payment

Set the purchase price and how much you'll pay upfront. The down payment can be entered as a percentage or a fixed amount. Banks in Spain typically require at least 20% down.

Set the interest rate and term

Enter your annual interest rate (fixed or the initial rate for variable mortgages) and the loan term. Most Spanish mortgages run 20-30 years.

See your payment and amortization

The calculator shows your fixed monthly payment, total cost over the life of the loan, total interest paid, and a year-by-year breakdown of how each payment splits between principal and interest.

Track your property in Arfin

Arfin lets you add your property with its mortgage, track equity growth, and include real estate in your total net worth dashboard alongside stocks, ETFs, and cash.

FAQ

Track your property and full net worth in one place

Start free →