A new construction home s one that is purchased after its construction, that has been registered for the first time in the Property Registry and that, therefore, has not previously had an owner. An off-plan home can also be considered new construction, that is, one that is still in the initial stage of design or construction.

Not having to do renovations to move in, its energy efficiency or being able to pay the down payment in different installments are the main reasons why buyers decide to opt for a new construction home. In this sense, the interested party will pay the reservation of the property –between 3,000 and 10,000 euros–, when signing the purchase and sale contract they will pay 10% of the value of the apartment, during the construction another 10% will be paid and, once the home is built, The remaining 80% must be paid, an amount that is usually financed through a mortgage.

Mortgages to finance new construction homes can be requested when "the construction company informs of the final date of the work," explains a real estate portal. At this time, the buyer may choose to take out a mortgage for new construction from a bank or subrogate the mortgage from the real estate developer. This last option can mean savings for buyers, since they "inherit" part of the loan that the developers contracted for the construction of the building, avoiding expenses such as the opening commission or the appraisal of the property.

«Choosing between a mortgage from a financial institution by comparing the different bank offers or subrogating you to the promoter's mortgage will depend on the conditions offered by each financing method. The best choice will be the one that allows you to assume fewer costs, has a more attractive interest or provides greater speed in the operation," states the real estate portal.

What are the mortgage costs for new construction apartments?

In addition to the mortgage costs for contracting a loan, the following purchase and sale expenses must be paid when closing the operation:

• VAT and IAJD. When purchasing new construction, buyers must pay 10% VAT (Value Added Tax) and IAJD (Documented Legal Acts Tax). If the apartment is an officially protected home (VPO), the VAT is reduced to 4%.
• Notary. Deeding the home before a notary is an expense that must be paid when purchasing any type of home. The fees are regulated by law and depend on the price of the property (between 0.2% and 0.3% of the purchase value).
• Property registration. Buyers must also pay the cost of registering the home in the Property Registry, a procedure whose cost usually ranges between 0.15% and 0.2% of the purchase price.

Likewise, buyers must assume the following mortgage expenses for new construction: 

• Property appraisal. In the event that a mortgage is requested from the bank to buy a new construction home, it will be mandatory to appraise the property, an easy procedure with hiptk!
• For the rest, we will take care of negotiating it for you. Trust hiptk! today to get the best conditions for your loan.