When applying for a mortgage, two factors are often overlooked: the mortgagee is the customer and the terms can be negotiated. To do this, however, it will be necessary to have a good financial profile and a strategy to get the most out of the negotiation.
Although some factors, such as the Euribor, in the event that you want to contract a variable mortgage, are outside the variables that can be influenced, others such as commissions or even the differential in the interest rate of the loan are matters subject to negotiation with the bank.
The first step in order to obtain the best conditions for a mortgage is to compare as many entities as possible; not only to analyze them and choose the one that compensates the most or whose requirements can be met, but also to obtain the maximum possible information about the offer of the rest of the banks. The competition between them is enormous and having this data increases the tools to use in the negotiation.
Once you have selected the most beneficial loan, it is also important to go to the bank having collected all the possible documentation that proves the good working and financial situation. Payroll and seniority at work, having a permanent contract and having no other credits or debts are some of the factors in favor of the client.
In addition, having savings, both for entry and incorporation expenses and to face possible unforeseen events, are other issues that can help in the negotiation.
Set goals to negotiate commissions
Before going to negotiate with the bank, it is important to know well the conditions it offers and also what you want to achieve. Some commissions will be easier to negotiate than others, and it is advisable to know what the objectives and priorities are.
The opening commissions, for example, no longer exist in many mortgages, which on the contrary may have a higher interest rate; which implies carrying out a preliminary study to assess different scenarios and what would be the result to be obtained in the negotiation.
Together with the opening commission, before the approval of the new Mortgage Law It was also very common for the entity to charge a study commission, which can no longer be required of the client but can also be included implicitly within the incorporation expenses.
In addition to the opening commission, there are other conditions that will not affect the client at the time of signing but that may do so in the future, and that must also be pending. The most common are the amortization, novation, subrogation and cancellation commission.
The amount of these commissions is expressed as a percentage of the total outstanding capital at the time of their application, and can be a high amount, so it is advisable to try to negotiate them using the advantage of having a solid financial profile and better offers from the competition.
With the increase in fixed-rate mortgages, the compensation commission for interest rate risk has become increasingly widespread, which appears in this type of loans and is applied in the event that a total or partial amortization entails a loss economical for the bank. According to the legislation, these compensations can be a maximum of 0.50% during the first five years of the loan and 0.25% during the rest of the mortgage.
Also trade the spread and linked products
In addition to the commissions, the interest rate is also negotiable if sufficient arguments are available. As in the case of commissions, it is advisable to analyze different possible scenarios to determine what reduction would offset the rest of the expenses associated with the mortgage.
In relation to the mortgage differential, and although the bank is no longer allowed to oblige to contract linked products such as insurance or cards, it is common for entities to offer a discount for each one that is contracted. In this case, it is also necessary to assess to what extent it is worth hiring products that will entail a cost for a long time and what amount will end up paying for them.
Do not lose sight of the fact that banks are looking for customers with a good profile labor and financial, therefore, if the factors in which the banks are most fixed are met, there is a good opportunity to achieve the best conditions for credit.
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