I’ve been house-hunting recently and had a chat with a bank manager about a mortgage. He mentioned the term ‘Aval,’ which completely threw me off. So, I wanted to ask everyone on the forum: is a guarantor always required when applying for a mortgage in Spain? I’m feeling a bit uncertain about it.
After doing some research and asking around, including this discussion on guarantors for property purchase in Spain, I think I’ve got the gist of it and wanted to share. Simply put, a guarantor is someone who takes on the responsibility of repaying the loan to the bank if you are unable to. The bank’s request for a guarantor is essentially to mitigate its own risk. So, the question becomes: under what circumstances does the bank consider you a high-risk applicant?
When Might a Bank Require a Guarantor?
Generally, if you’re an ‘ideal client’—with a stable employment contract, high income, and a substantial down payment—you most likely won’t need a guarantor. However, as discussed in threads about needing a guarantor in Spain, the bank might make this request if you fall into one of the following categories:
| Situation | Bank’s Consideration |
|---|
| Unstable Income | For example, if you are self-employed (autónomo) or have a temporary contract. |
| Low Down Payment | The less you contribute yourself, the higher the risk for the bank. |
| Advanced Age / Long Loan Term | Banks are cautious if you will be over 75 years old when the loan is fully repaid. |
| Poor Credit History | Having a history of late payments or defaults on previous loans. |
| High Loan-to-Income Ratio | The requested loan amount is significantly higher than your annual income. |
Policies are not set in stone. Each bank has its own risk assessment criteria; one bank might reject you while another approves your application. Therefore, it’s always a good idea to inquire with multiple banks. If you really can’t find a guarantor, you could also try increasing your down payment or consider purchasing ‘payment protection insurance’ offered by the bank. Although it adds to the cost, it can sometimes serve as an alternative.
A guarantor is not not necessarily a requirement, but if you’re considered a ‘high-risk’ client by the bank, it’s wise to understand the possibility and have a backup plan. Has anyone else encountered a similar request when getting a mortgage? How did you handle it? Feel free to share and discuss!
