There are a number of costs involved in arranging a mortgage in Spain and include commissions charged by the financial institution involved as well as taxes to the government.
The commissions charged by the bank can be divided into two types: Finance Check and Opening Charge.
The amount charged for checking into the applicant’s financial history to determine if they should qualify to receive the loan is a percentage over the total amount of the mortgage conceded.This is a one-off payment and may only be charged where the mortgage is issued.
Likewise there is a percentage charge that relates to the administration involved in arranging the mortgage. For mortgages of a value below €150,000 this charge includes the charge for the finance check.
There also tends to be a charge for carrying out the relevant checks on the property registry so that the bank can ensure that the property that is being offered as security for the mortgage is free of all charges etc.
All together, typically the banks will charge around 1% of the amount being lent for arranging the mortgage.