Buying a home on your own is becoming tougher. Prices keep fluctuating, the amount needed to qualify for finance remains high, and buying or selling can feel like navigating a maze. Independent buyers face rising rents, climbing home values, and higher mortgage rates, all of which complicate the goal of purchasing with a single income, notes the Mortgage Director at iAhorro, a mortgage comparator and advisor.
The typical single applicant for a mortgage in Spain is around 38 years old, employed on a permanent basis (about 73%), with seven years of tenure and a net monthly salary near 2,915 euros. The average home price sits around 217,000 euros, with typical savings near 80,000 euros. Around 12.4% of iAhorro users who take out mortgages buy new builds, while 86.6% opt for pre-owned homes and only about 1% pursue officially subsidized housing. [Citation: iAhorro data]
When couples are analyzed, the average age dips to about 37, combined monthly net income rises to roughly 4,600 euros, and savings hover near 100,000 euros. The typical home price for a couple is around 290,000 euros. [Citation: iAhorro data]
With this profile, lenders don’t throw up roadblocks as often. A major challenge for solo applicants is that debt risk tends to be assessed strictly by banks. They often won
0t allow more than about 35% of monthly net income to be allocated to the mortgage. If wages don
0t rise while rates and prices climb, debt risk can spike quickly, explains Colombelli. [Citation: iAhorro]
For example, to secure a loan of 174,000 euros (a typical ceiling in many banks for a home priced around 217,000 euros) at a 3% rate, the monthly payment might exceed 730 euros. That would put a person earning a net 2,915 euros per month at a debt ratio of about 25%, which is under the 35% threshold commonly suggested by the Bank of Spain. [Citation: iAhorro]
Singles could buy a home in only seven communities…
The College of Registrars reports that during the second quarter of 2023 the average price per square meter in Spain was 1,979 euros, up 1.12% from a year earlier. A 100 square meter home would cost roughly 198,000 euros, though prices vary widely by community. [Citation: College of Registrars]
Looking at regional variations, Extremadura shows the lowest price per square meter at 783 euros, down about 1.63% from the prior year. Castile and Leon sits at about 864 euros per square meter, up 4%. In every case, the affordability story shifts with location. A young buyer with an average salary might still manage a mortgage in several regions, but major urban centers remain costly. Madrid leads with the highest averages, and the Balearic Islands also show steep pricing, with the Basque Country and Catalonia following closely. [Citation: College of Registrars]
…and they will have to save an average of 9 years to pay the down payment
iAhorro also answers the question: how many years must a young person save to cover the down payment and mortgage costs? If a buyer is aged 20 to 34, earns an average salary, and can allocate 35% of that salary to savings while considering typical price per square meter, the projection shows a down payment horizon of about 8.7 years. Saving to reach the down payment remains a lengthy journey for many would-be homeowners. [Citation: iAhorro]
“If you live with your parents, the math can look better, but the reality often changes once rent and other expenses are added,” notes Simone Colombelli, director of iAhorro Mortgages. She adds that the primary downside is that saved money ends up serving as the entry cost, while the loan covers the larger portion of the purchase. In addition, lenders may demand collateral or a second guarantee in some cases due to elevated default risk. [Citation: iAhorro]
As buyers assess their options, transparency about the loan process and the true cost of ownership becomes essential. This includes understanding how debt-to-income ratios are calculated, how interest rates influence monthly payments over the term of the loan, and how regional price differences affect long-term equity. Financial education and planning tools can help borrowers in both the United States and Canada navigate similar questions about cost, savings horizons, and the balance between rent, price, and mortgage capacity. [Citation: iAhorro]