As a result of the confinement and the “new normal” the savings of the Spaniards has skyrocketed. For example, the deposits that Spanish families had in banks at the end of July stood at 942.8 billion euros, its all-time high.
In this environment, many mortgages have managed to save a little money that they could well use to pay off the mortgage (either in installments or in term) and thus sleep more peacefully.
But the decision is not so simple since the negative Euribor has literally turned things upside down, so much so that it is the bank that has to pay interest to the client in some cases, so in this environment the logic lacks of meaning and it is understandable that one no longer knows what to do, what was positive before is now negative and what was good before is now bad. Curiously, the indebted person is rewarded and the saver is punished and therefore it is logical to think that amortizing would be useless. And so it is in most cases, financially it is not profitable to amortize, except in one case that affects millions of mortgages.
Taxation.
This is, by far, the most important point for which it is convenient to amortize, if your mortgage is prior to January 1, 2013, the profitability of doing so is unbeatable since you can obtain up to 1,356 euros per holder, since the Treasury returns 15% of what was contributed in the year up to a limit of 9,040 euros. Therefore, in this case, it should be done for that maximum.
Beyond this scenario and for those with a recent mortgage, a calculator in hand does not make much sense to amortize the mortgage since with that money they will not give you practically any interest in the bank and you will also probably have to pay a commission for early repayment , perhaps the only real interest you can obtain is the psychological one of sleeping with less debt and here we are already talking about personal and family situations, also in an environment as uncertain as now, perhaps it is convenient to have a savings mattress to face the crisis that is coming to us.
So whatever you do you will probably be right, if you pay off well because you are always freer owing less money and if you don’t, also because financially it doesn’t make much sense to do so.
–
