Hello, everyone!
More than 3 years ago, I bought a holiday home on the Canary Islands. The purpose was to use it for a small extent for my own use, and for the most part for rental. After the outbreak of the Corona virus, the rental has been going really well. At that time, the property was financed with approximately 50% equity and 50% loan from a German bank. Part of an existing single family home in Germany was taken as collateral, since German banks generally do not accept foreign objects as collateral.
Now I have discovered a fantastic property in the same place on the Canary Islands. The idea would be to sell the apartment there and take out a loan from a Spanish bank. Financing would also be 50% equity in this case, so the bank would definitely have enough security. However, the problem is more that in Spain, there is the 30% rule, where the payments for the mortgage cannot exceed 30% of the income. Is it possible to add the expected rental income from the new property to the income?
If you are familiar with Spanish loans and the 30% debt/income rule, please answer. Thanks!
