5 Tips for Getting the Best Mortgage Conditions – Make Your Home Purchase Easier

Who are looking buy a home They know that it is not an easy operation. After visiting numerous properties and finding the one that best suits your needs, but also has a price that you can afford, one of the most complicated procedures arrives: hiring a mortgage.

Taking into account that most people are not used to carrying out this type of operations, the terms used by banks when selling these products, as well as the steps to follow, may be confusing. Below, we share some keys to achieve the better conditions.

Compare several mortgages

To obtain the better conditions When it comes to mortgages, it is essential not to settle for the first offer made by a financial institution and to take a look at the different credits available on the market.

It is advisable not to stay with the first proposal

Taking into account that the interest rates and the conditions of each mortgage vary significantly depending on the financial institution, it is preferable to obtain several proposals.

the art of negotiation

A key factor when choosing the mortgage loan to take out is the negotiation with the financial institution. For this reason, people interested in obtaining financing to buy a house must agree as much as possible on the best interest rates, commissions and cancellation fees, as long as they have the opportunity to do so.

Among the factors to which greater attention should be paid is the dation in payment clause, which contemplates the possibility of handing over the home in case of non-payment. The duration of the mortgage also appears, since the longer the mortgage repayment period, the lower the monthly payment to be paid.

Pay attention to linked products

Those who want to become owners will also have to pay special attention to mortgage bonds. Financial institutions usually offer better interest rates to clients who take out some of the products linked to the loan, such as home insurance.

Contracting linked products allows access to discounted interest rates. Photo: Freepik.

For this reason, many clients end up choosing to take out the mortgage and these products, with the aim of accessing lower interest rates. However, after doing the calculations, you may end up paying a higher amount than if you had taken out a mortgage with slightly higher interest rates.

Understand the conditions of the mortgage

Although it may seem obvious, sometimes it can be difficult to understand all the terms that appear in the mortgage. However, it is vitally important to understand the conditions of the loan before signing the contract with the financial institution in which you decide to formalize the operation.

Those interested in taking out a mortgage should familiarize themselves with the most common terms

The interest rate, the amortization periodcommissions or Euribor are some of the terms most commonly used by banks, with which clients will have to familiarize themselves to obtain the mortgage with the best conditions.

Choose the modality well

The options when taking out a mortgage are multiple, since there are different modalities. One of the most popular is the variable mortgagewhich has come to the media spotlight after the increase in the monthly payment that some users have experienced due to the interest rate increases undertaken by the European Central Bank (ECB).

There is a wide range of mortgages. Photo: Freepik.

In this type of mortgage loan, the installment to be disbursed is subject to the evolution of an index, usually the twelve-month Euribor. In contrast, there is the fixed mortgagein which the same monthly amount is always paid.

Another option is mixed mortgage, which combines the characteristics of both modalities. While during the first years the interest rate to be disbursed is fixed, in the subsequent years of repayment of the mortgage the interest rate is variable.

In recent months, a new type of mortgage has emerged, launched by Bankinter. It’s about the dual mortgage, in which the client can choose which percentage of the monthly payment follows the fixed interest rate conditions and which follows the variable interest rate.

2023-12-24 16:45:40
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