How much money do I need saved to buy a home?

What the bank usually finances and what it does not

As a general rule, the mortgage covers a portion of the price or the valuation (whichever is lower in many risk assessments). You provide the rest as a deposit or equity. Furthermore, lenders almost never finance 100% of purchase expenses: ITP or VAT, AJD in certain cases, notary fees, land registry, gestoría fees and arrangement commissions usually come out of your own pocket.

Banco de España publishes information on mortgage loans and creditworthiness criteria; it is worth reading this alongside the specific offer provided to you. Do not assume that because an acquaintance obtained 80%, you will have the same margin with a different age, employment contract or property type.

Expenses that reduce your savings margin

For resale properties, Property Transfer Tax (ITP) is set by each autonomous community and can vary based on the buyer's age, primary residence status or property classification. For new-build properties, VAT applies and, where relevant, AJD stamp duty. To this you must add notary and registry fees (based on official tariffs and complexity), gestoría fees if instructed, and the mortgage valuation if required by the lender.

Since the reform of the minimum tax base, the Catastro reference value can have an impact even if you agree on a lower price. This is why standard textbook savings calculations (simply purchase price minus mortgage) often fall short.

Liquidity reserve beyond completion

It is advisable to maintain a buffer for furniture, minor refurbishments, the first month of community fees, utility connections and potential lender contingencies (tied insurance products only if accepted on an informed basis). Law 5/2019 mandates pre-contractual disclosures (FEIN, FiAE); use them to review the total cost of the credit, not just the monthly instalment.

How to calculate it without promising a fixed %

1. Define a realistic maximum price and request a mortgage simulation based on your current income and debts.
2. Ask the bank or broker for the financing percentage range based on property valuation (not the listing portal price).
3. Add an estimate of taxes and completion costs for the autonomous community where you are buying (ITP or VAT+AJD).
4. Deduct the amount they would finance from the price and add the expenses: this gap represents your indicative minimum savings needed.

If the result feels tight, before scaling back your wishlist, review the mortgage term, interest rate and whether it pays to wait and accumulate further savings to secure better terms.

Signs that you are short on funds

• The deposit comes almost entirely from a personal loan or credit card (lenders usually penalise this).
• You have no margin left for taxes and notary fees after paying the deposit.
• The bank finances to the absolute limit and requires tied products that increase the effective cost.

In such cases, a mortgage credit intermediary can compare lenders; a personal shopper inmobiliario helps negotiate price and terms before you commit via a deposit agreement.

Reservation fee and deposit: do not confuse with the bank deposit

The reservation fee or deposit (arras) paid to the seller forms part of the purchase price, but it does not replace the bank's creditworthiness assessment. Only reserve a property when you are certain that your savings plus the anticipated mortgage cover the completion deed and taxes, or make the contract subject to financing upon professional advice.

Joint buyers and guarantors

If you purchase as a couple or with a family member, the bank combines income as well as existing debts. Sometimes one party provides more savings and the other greater repayment capacity: it is advisable to put in writing who contributes what to avoid tension if the mortgage process is delayed. Guarantors do not replace the deposit: they reduce risk for the lender, but do not remove purchase expenses.

New-build versus resale properties

In new developments, the payment schedule includes advance instalments to the developer; for resale properties, the cash outlay is concentrated at completion. Your savings plan must follow the real schedule of the contract you sign, rather than a generic online template.

Next step

Before visiting dozens of properties, do the reverse calculation: "with X saved and a reasonable mortgage, what is the maximum price that fits?". This filter saves time and prevents you from falling in love with unaffordable listings. If you are buying in Madrid, Valencia, Mallorca or Zaragoza, Sky Real Estate can guide you through the search and coordinate with mortgage specialists whenever required.