Buying a property in Spain with bank financing involves following a process regulated by law, designed to protect the consumer.
Law 5/2019 on real estate credit contracts establishes a series of steps that ensure transparency and the customer’s full understanding before signing the mortgage.
The FEIN – the binding loan offer
Once the bank approves your mortgage application, it provides you with the FEIN (Ficha Europea de Información Normalizada).This document, equivalent to an official offer, includes all essential information about the loan:
- the amount granted,
- the interest rate (fixed, variable, or mixed),
- the amortization period,
- the monthly instalments,
- fees and charges,
- and the obligations of both parties.
The FEIN is legally binding for the bank for at least 10 calendar days, during which the financial institution cannot modify the conditions. This period allows you to review the offer, compare it with other banks, or consult an advisor before committing.
Together with the FEIN, you will also receive the FiAE (Ficha de Advertencias Estandarizadas), which explains the main risks of the loan, such as interest rate fluctuations or the consequences of missed payments.
The “acta previa” – the transparency appointment with the notary
Before signing the mortgage, the law requires an appearance before a notary known as the acta previa (or transparency certificate).
During this appointment, the notary verifies that:
- you have received the FEIN and the FiAE,
- you have had the legally required time to review them,
- you understand the loan conditions,
- and that the bank has correctly informed you.
The notary will ask you a series of mandatory questions, such as:
- Do you know the applicable interest rate (fixed, variable, or mixed)?
- Do you understand the consequences of missed payments or early repayment?
- Do you know the total cost of the loan?
At the end of the meeting, the acta previa is signed, a notarial document confirming that you have been properly informed and that you understand the conditions. This procedure is free of charge for the customer and constitutes a legal guarantee of transparency.
Only after signing the acta previa, and once at least one day has passed, can the mortgage be formalized.
The mortgage deed – the final loan contract
The mortgage loan deed (Escritura hipotecaria) is the official notarial document that sets out the final contract between you and the bank. It includes all details of the loan:
- the total amount and term,
- the interest rate and instalments,
- fees and charges,
- the property used as collateral (the mortgage),
- and the bank’s rights in case of default.
The mortgage deed is signed before a notary, usually on the same day as the property purchase deed (escritura de compraventa). After signing, both deeds are registered with the Land Registry (Registro de la Propiedad).
Once registered, the mortgage comes into effect, and the bank releases the loan amount, normally paying it directly to the seller or developer.
A clear and secure process
Thanks to these steps — FEIN, FiAE, acta previa, and the mortgage deed — the mortgage process in Spain is now much more transparent and secure. The customer receives all information in writing, has enough time to understand it, and enjoys the independent oversight of a notary who ensures the legality of the procedure.
In summary:
- FEIN: the binding offer with all loan conditions;
- Acta previa: the notarial meeting confirming that you understand and accept the conditions;
- Mortgage deed : the final, legally valid contract that formalizes the loan.