A Guide to Mortgages in Andorra
- elizabethhelenpier
- Dec 31, 2024
- 5 min read
Updated: Mar 7
Understanding mortgages in any new country you live in can be a complex task and this does not change when moving to Andorra. From understanding who offers mortgages, to the types of conditions to expect here and what regulations they have in place to approve mortgages, you will likely have a lot of questions when you buy real estate in Andorra. We will list the most common queries surrounding mortgages in Andorra below.
Who provides mortgages in Andorra?
The only entities to provide mortgages in Andorra are the banks. There are only three banks in Andorra, and they are all private Andorran banks with little international presence: Creand, Morabanc and Andbank. Each of the bank’s business plans is unique so the type of mortgage on offer may vary quite a lot depending on the entity in question.
How easy is it to get approved for a mortgage in Andorra?
If:
1. You are resident in Andorra
2. This is the first time you buy real estate in Andorra
3. Your mortgage repayment request equates to less than 35% of your monthly income
4. Your income is stable (proof of income over last 3 years will be needed)
5. You are under 50 years old
You should have no problem getting approved for a mortgage by any bank in Andorra.
The issues with approval come about when the income is not stable (years with income and years without) or the person in question is a new resident with a new business with no precedent foreign business profits to show. Furthermore, the banks will not approve a mortgage that equates to above 35% of your income. The banks in Andorra are very cautious and risk adverse. It does not mean it is impossible to obtain a mortgage under any of these conditions, rather the conditions in the contract will change, and the down payment will be significantly higher.
Can a foreigner (non-resident) get a mortgage in Andorra?
Yes, but the conditions will change significantly compared with a resident. You will likely be expected to put down a 50% down payment on the property to get approved for a mortgage. Not all the banks will accept you either and the conditions will vary. A foreigner is considered any person without a residency card at the time of mortgage approval and signing.
Can you get a mortgage in Andorra without a credit rating?
Credit ratings as in the USA or UK do not exist in Andorra unless you ask your bank specifically to come up with a credit rating document. No-credit-check-loans are the norm when you buy real estate in Andorra meaning you do not have to worry about any previous credit history abroad or the lack of credit history in Andorra. The banks will be wary to approve anyone without sufficient proof of income over a minimum 3 year period so you will be expected to show this income by means of company end of year accounts, CASS points if you have any from employment and your general bank account movements and income.
Can you get a mortgage in Andorra for a foreign property?
Yes, the banks can offer mortgages to Andorran residents for foreign property. These kinds of mortgages are relatively easy to obtain if income is sufficient, you are a long-term resident with a positive banking history and the property is in Spain or France. For property further afield it will be more complicated to be approved for. The mortgage conditions will not be the same as when you buy real estate in Andorra. The bank will unlikely give you an idea of the conditions until you have the property in question in mind and pay their compliance team to study the case for you. Expect 50% down deposits and variable rates only on offer for mortgages for foreign property.
How much down payment is necessary for a mortgage in Andorra?
In Andorra, historically, no down payment was needed. You could even get a 110% mortgage to cover new furnishings and painting costs for example. This then shifted to down payments of 20% to 30% in the more precarious real estate era of the 2000s. Since 2022 and the hike in interest rates and property prices, banks became much more flexible with their conditions surrounding down payments again. You will find mortgages for first home properties that can be obtained with a 10-15% down payment in 2025.
Historical mortgage rates in Andorra
Mortgages in Andorra much like in Spain are based exclusively on the Euribor rate. The Euribor along with most other world interest rates spent 10 years under 1%, with much of that period in negative figures. Mortgage interest rates in Andorra are generally kept very close to this Euribor figure with minimums to keep it in positive, consequently the going Andorra interest rate was 1-2% for the 10-year period 2012-2022. Furthermore, fixed for life (10-25 years) mortgages became the norm for residents buying their first property. Given the above information, traditionally in Andorra the concepts of mortgage porting, mortgage selling and remortgaging have never really existed here. Given the changing times however, some banks as of 2024 may consider you for remortgaging, but for the moment it will still require a lot of persuasion and a healthy income.
Current mortgage rates in Andorra in 2025
This article will be updated to the best of our abilities however at times given the fluctuations in the market, the rates may be off by some months. As of March 2025, the Euribor is continuing to drop and currently sits at around 2.5%. Fixed rate mortgages are being offered at 3.25-3.75% and both variable and short term fixed rates now sit at around 2-3%. Life long fixed rates are now becoming less the norm, with banks offering instead 5 year fixed rates that change to variable once this period has finalised. This is riskier than the previous life term fixed rates but does give one advantage; in a few years when these fixed rates finish, the culture of porting and re-mortgaging may finally come into existence in Andorra.
Peculiarities of mortgages in Andorra
You will need an architectural valuation done on the property before being approved for a mortgage
You may have to pay a few hundred euros for the bank to consider your mortgage request
Your mortgage interest rate will likely change (it will increase) if you lose residency. This will be written into the mortgage deeds
Your mortgage interest rate will likely change (it will increase) if you lose your salary. This will be written into the mortgage deeds
If you default 3 times on your mortgage, the bank has the right to take your property
There is no government help if you are defaulting or cannot make payments
Mortgages will only be conceded until the age of 65 and repayments will need to be finalised before the age of 65.