6 reasons why you should keep your monies and apply for a mortgage

1. Cheap money. Earn money by applying for a mortgage.
   
   Rates in Spain are currently one of the cheapest in Europe. Mortgage rates in Spain can be as low as 2 points under the less expensive mortgage loans across Europe. This means that you can be earning up to 4 points per cent if you apply for a loan in Spain for the purpose of purchasing a property and you invest your hardly earned savings in an offshore investment fund capable of returns of up to 10% with moderate risk. Any experienced fund manager will be able to confirm this.
   
   
2. Save on taxes.
   
   Spanish Income Tax Act allows you to deduct the interest paid on your mortgage from the overall tax bill. Your annual tax return is therefore reduced and the burden of the yearly costs on the property is less.
   
   
3. Selling your mortgaged property?: many more buyers for your mortgaged property.
   
   A property which is mortgaged is definitely an appeal for potential purchasers. The purchaser in need for a mortgage will benefit from an overall purchase costs reduction of up to 2.5% of the purchase price if he takes over your property with a mortgage loan. Stamp Duty (currently at 0.5% of the mortgage capital plus interests) and mortgage opening commission (from 1% to 2% of the mortgage capital) are not a burden for the buyer's pocket. Enough to make many buyers' minds up and choose your property to purchase.
   
   
4. Increase your legal protection.
   
   Although banks are not lawyers and they are not a substitute for qualified legal advice, they do conduct searches on the legal status of the property and ensure more protection for the purchaser. Don't forget your lender is as interested as you are in having a clean title to a property which is serving as a guarantee for the money you are borrowing.
   
   
5. Always keep enough liquidity available.
   
   For non-resident borrowers, a property in Spain is partly holiday investment and commercial investment. If you have a limited budget enough to cash-buy a property should you not keep part of the monies as a safety net? When you most need your savings is when you don't have them (Murphy's law), and only those who have gone through it know who useful cash reserves can prove to be in certain times of our lives.
   Put that extra amount of security in your life and don't spend more than you can afford. And if you can afford, then borrow!
   
   
6. Borrow now before you get older.
   
   It's a tough fact of life: as years pass, we become less attractive business partners for any lender. Given that mortgage loans are repaid along the years (in periods of up to 30 years for resident borrowers), lenders want to make sure we are still employable by the time the period expires. Most lenders will seek periods which do not fall outside your retirement age, in order to ensure an uninterrupted cash flow to cover the repayment. The sooner the we get the loan to by that property the younger we will feel!!