Spain's mortgage: the average amount is close to € 220,000 in the Balearic Islands and only 82,000 in Murcia

How did the 2008 crisis and COVID-19 affect the size of mortgage loans in Spain
The average mortgage taken to buy a home is close to € 220,000 in the Balearic Islands and reaches € 203,000 in Madrid. In Murcia it is around € 82,000, in Extremadura it does not reach € 87,000 and in La Rioja it barely exceeds € 91,000.

The data published this week by the National Statistics Institute (INE), referring to last August, reveal strong regional differences in the average amount of mortgages, linked to the territorial diversity of the real estate market.

Playa de Gandía
Playa de Gandía
As for the average amount of mortgages, in most of Spain they are around € 110,000, according to the Efe agency: 100,208 in the Valencian Community, 103,634 in Castilla y León, 103,648 in Galicia, 103,882 in Ceuta, 105,024 in Aragón, 105,081 in Castilla-La Mancha, 107,276 in Cantabria, 110,492 in Asturias, 115,371 in the Canary Islands, 120,412 in Andalusia and 123,190 in Navarre.

Below this majority group of regions are the aforementioned Murcia, with € 81,886; Extremadura, with 86,875; and La Rioja, with € 91,263; and above them, with amounts above the average (€ 137,885), is a third group formed by the Balearic Islands, with € 219,311; Madrid, € 203,181; Melilla, € 174,065; Catalonia, € 160,831; and the Basque Country, € 153,773.

Mortgages of a lower amount than before the 2008 crisis

With regard to the evolution of these figures, if to compare to pre-crisis August 2007, it can be seen that in all the communities mortgages are still being taken for lesser amount than before the bursting of the housing bubble, except in the Balearic Islands, which has recorded an increase of 19.99%, and, above all, Ceuta and Melilla, with increases of 58.84% and 24.49%, respectively.

The largest decreases in mortgage amount over the last 14 years were seen in La Rioja, 41.19%, and Murcia, 33.99%, followed by the Valencian Community, 24.92%; Aragon, 23.99%; Castile-La Mancha, 20.93%; and Navarre, 19.02%.

Mortgage amount have fallen (compared to pre-2008 crisis times) in Andalusia (-16.10%), Castilla y León (-16.05%), Cantabria (-15.21%) and Catalonia (-14.87%); and around the national average (-9.57%) in four other communities: Galicia (-10.06%), Asturias (-9.65%), the Basque Country (-8.21%) and the Canary Islands (-8.02%).

The minimal decreases of mortgage amount were recorded in Madrid, with 2.58%, and Extremadura, with 1.28%.

With respect to 2020, the amount of money loaned decreased in a dozen communities: Aragón (-9.62%), Galicia (-7.77%), Comunidad Valenciana (-7.23%), Navarra (-5.01%), Murcia (-4.53%), Baleares (-2.89%), Canarias (-2.57%), Madrid (-0.68%) and Cantabria (-0.42%), as well as Ceuta (-33.41%).

On the other hand, it has risen in Castilla y León (19.23%), Castilla-La Mancha (10.11%), Extremadura (7.51%), Asturias (7.53%), Andalusia (5.48%), La Rioja (4.46%) and the Basque Country (3.4%), as well as in Melilla (27.10%).

The coronavirus crisis did not affect the amount of mortgages for house purchases last year, since, in addition to increasing the average by 6.5%, it increased in 13 communities and in Melilla as well.

Although the largest increase by far was in Melilla, with 112.66%, among the autonomous communities where the amount of mortgage grew most was in the Canary Islands, with 19.39%, and Asturias, with 19.08%, followed by Catalonia, with 15.51%, and Castile-La Mancha, with 14.62%.

On the other hand, it fell in Aragon (-12.81%), Valencia (-3.78%), Navarre (-2.10%) and the Balearic Islands (-1.94%), as well as Ceuta (-16.29%).

The average new mortgage amount in Spain (in euro)

Based on Q3 data of the National Statistics Institute (INE).
Read more related articles

From now on heirs are able to sell the inherited property without waiting two years required by the Article 28 of the Mortgage Law

How buyers changed their preferences in mortgage type in Spain

How a non-resident can obtain a mortgage in Spain: documents, rates, costs, overpayment. The complete guide for getting mortgage in Spain.

Want to keep up to date with the latest news on Spanish real estate?
Thank you for your attention! If you are interested in Spanish real estate
contact our agents!

Get the monthly Virto Property newsletter
Subscribe to get the must-read news in your inbox.
Once a month you will hear about our latest features and hottest news.
And no spam, of course.
Subscribe to Virto Property social networks and stay informed!