How to find the best mortgage in 2021 – idealista / news

When applying for a mortgage it is usual to go to our trusted entity. However, the best way to ensure you get the best option available is track the market and analyze different offers. It is advisable to compare variables such as the interest rate and the APR, the commissions, the bonuses that make the loan cheaper, as well as the maximum term for which they can be contracted. We review some practical keys from the hand of idealista / mortgages to get it right when choosing the best mortgage to buy a home.

How to find the best mortgage?

The first thing we must be clear about is that There are many mortgage products available, although not all offer the same terms.

And although going to the bank of a lifetime to ask for financing for the purchase of a home may seem the most logical thing, the truth is that this option does not have to be the best. In fact, once we know the maximum budget we have to buy a home, the first advice from the experts is to compare the loans offered by the sector in general, emphasizing the conditions and characteristics of each of them to know what we need. It is more convenient and which ones we can rule out at first.

One of the fastest ways to know how the market is and what each entity offers broadly is use an online mortgage comparator, whose operation is very simple. In the idealista / mortgages comparator, for example, just enter your data to find out all the options available to take out a mortgage.

What should be considered when comparing mortgages?

Some of the most important elements that have to be assessed before contracting a mortgage are the following:

TAE

The APR (Annual Equivalent Rate) is an indicator in the form of a percentage that allows you to compare mortgages very effectively, since indicates the real cost that the client is going to pay for the loan. In addition to the loan money, each month the bank will have to be paid the interest on said loan (TIN), as well as certain expenses and commissions associated with the mortgage. Unlike other indicators such as the TIN, the APR takes into account all these expenses, so it offers us a real idea of ​​what will have to be paid together month by month.

commissions

Although looking at the APR will already give us a very specific idea of ​​the additional expenses that we will have to pay each month, it is convenient to take into account the commissions that banks can establish. For example, the opening commission, the commissions for partial or total early repayment (which can be a hidden extra cost when you have money to pay the mortgage in advance), the withdrawal fee in the case of fixed rate mortgages…

Bonuses

Another important factor when comparing mortgages is the bonuses. That is, the additional products to get a competitive rate. These products can suit us on many occasions, such as if it is used regularly the credit card or if we are going to take out home insurance. Contracting these products with the same bank with which we are going to contract the mortgage can reduce the interest rate of the loan, although it is essential to analyze the costs of these products, since there are many differences between the insurance premiums of each entity.

In addition to using bank cards or taking out house insurance, among the most common bonuses are domicile income, take out life insurance or open a pension plan and make periodic income.

Type of interest

This is one of the characteristics that you should take into account when comparing a mortgage, since it determines the money that we are going to pay the bank for the loan of money that it is going to make us.

Currently we can find mortgages at a fixed interest rate (which allow you to pay the same amount from the first installment to the last) or to a variable interest rate, which are linked to a reference type. The most common is the Euribor, to which banks apply a spread, and both form the interest rate. In this sense, experts recall that there is no perfect mortgage, but that everything it depends on the personal and financial circumstances of each individual.

Deadline

This is another factor to consider when comparing mortgages. The maximum term refers to the maximum time in which we must repay the mortgage. The longer the maximum term, the smaller the monthly payments that we have to pay, although the years that we owe money to the bank will also be more. On the contrary, a shorter maximum term implies that we will have to face higher monthly payments, although it also predisposes us to settle the debt with the bank in a shorter period of time. And remember: the longer the term of the mortgage, the more interest you will end up paying.

Purpose of the mortgage

The purpose for which we request the mortgage money also affects the conditions. Therefore, when comparing mortgages, it is essential to be sure that the mortgage products we are comparing are similar. The conditions when applying for a mortgage to buy a first home are not the same as when applying for a second residence, a bank flat, an officially protected home, to acquire developable land, to acquire rustic land, etc. .

Generally speaking, banks are usually willing to grant more financing in the case of the main residence than in a second residence, while many apply advantageous conditions if it is to buy a property of their property.

Help from a professional

In addition to all these elements, there are others that also affect the conditions of the mortgage and the possibility of the concession. Therefore, when comparing mortgages, It is advisable to put yourself in the hands of professionals to ensure that we make the best decision, since they have information and knowledge of the market.

Finally, keep in mind that the final decision to choose between one mortgage or another must be made once it has already been obtained the approval by the banks and the conditions have been negotiated with each one. In fact, in this way better conditions can be obtained, which in the end will benefit us for the future.

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