Saturday, November 26

The best mortgages in the final stretch of 2021

For those considering buying a home, this can be a great time to apply for a home loan. And it is that they have never been offered before in Spain best fixed and variable rate mortgages and with less opening commissions.

According to the financial comparator HelpMyCash, the banks with the most attractive conditions are Openbank, COINC, Ibercaja and EVO Banco.

What are the cheapest fixed mortgages?

When comparing mortgage offers, it is important look at all those expenses that make the mortgage more expensive. In HelpMyCash they have developed a ranking with the cheapest mortgage loans in December taking into account these indicators, such as the interest rate, commissions and bonus products.

The latter include the financial services and products that the client has to contract to access the lowest interest offered by the bank, such as life insurance, pension plans, payroll direct debit, etc.

With this criterion, the best fixed mortgage on the market is the Hipoteca Open Fija de Openbank. Your interest depends on the repayment term: 1.15 percent if it is up to 15 years, 1.25 percent if it is up to 20 years, 1.30 percent if it is up to 25 years and 1.35 percent if is up to 30 years.

To achieve this, the client must domicile a minimum income of 900 euros and contract home insurance with the entity. It has no opening commission.

The second most attractive offer of this modality is the COINC Fixed Mortgage. It has an interest of 1.25 percent for a term of up to 15 years, 1.30 percent if it is up to 20 years, 1.35 percent if it is up to 20 years and 1.40 percent if is up to 30 years. It is not necessary to contract any product from the bank to access these interests. It also does not include opening commission.

The bronze medal goes to the One Step Mortgage from Ibercaja, with an interest of 1.30% for a term of up to 20 years. The condition to get this rate is to direct the payroll of the holders to a joint value of, at least, 2,500 euros per month. Like the other loans mentioned, this one does not have an opening commission.

And the best variable mortgages?

As for variable mortgages, the cheapest on the market is the COINC Variable Mortgage. The interest on this loan is 1.89% during the first year and Euribor plus 0.89% for the rest of the term, without the need to contract other products of the entity. Does not include opening commission.

The second place of this ranking is for the Smart Mortgage from EVO Banco, whose interest is Euribor plus 1.85% the first year and Euribor plus 0.83% for the following years. It is subsidized by the direct debit of a minimum income of 600 euros per month and by contracting the entity’s home and life insurance. This bank does not charge an opening commission.

The third cheapest variable mortgage is the Hipoteca Open Variable de Openbank, which has a fixed interest of 1.95% the first year and Euribor plus 0.95% the following. To get these rates you have to domicile a minimum income of 900 euros per month and take out the bank’s home insurance. This credit does not have an opening commission.

You have to assess all aspects of the mortgage

Although these are the banks that offer the cheapest mortgages on paper, from HelpMyCash they advise go to as many entities as possible. In this way, the applicant will have a broader vision of the market and will be able to negotiate for better conditions, especially if his financial profile is good.

Bonus products are one of the most important criteria to consider when comparing offers. Some services to which the client can adhere do not represent an extra money outlay, such as, for example, direct debit of the payroll.

On the other hand, for products that do involve an extra expense, such as insurance, the criterion for deciding is different: on the one hand, you have to assess whether the coverage is competitive and, on the other, whether it is worth subscribing to them in relation with the reduction of the interest that they associate.

For example, if a client is interested in taking out insurance to cover possible damage to the home, due to death or to be protected against future unemployment, a good option is the Fixed Mortgage of Banco Sabadell.

This has an interest of 1.39% for a term of up to 30 years when directing the payroll or pension and contracting the entity’s home, life and payment protection insurance.