The ideal mortgage: tips for choosing well and managing it better.

The mortgage is a medium-long term loan (up to 30-50 years) guaranteed by a mortgage registered on the house for which the mortgage is requested.

The search for the perfect mortgage is never a simple operation. It is very important to spend time looking for the best financing since it is a product that commits for substantial capital and long durations (on average more than 120,000 euros of capital and a duration of over 20 years).

• Take time to choose the mortgage that’s right for you . You were not satisfied with the offer of the bank in which you have the current account, but compared several offers. The loan agreement commits you for a substantial amount and for long durations (on average more than 120,000 euros of capital and a duration of over 20 years), it is therefore good to choose it carefully, comparing also the pre-contractual documentation. Our online service can help you make an informed choice in a short time.

• Always ask for the European standardized form (PIES) for the comparison which shows all the economic conditions of the proposed loan and the amortization plan. • Choose the type of rate well

. The fixed rate allows you to have a constant and always the same installment for the duration of the mortgage; but on the other hand it does not allow you to take advantage of any reductions in market rates. The variable rate provides for the periodic definition of the installment which therefore always changes during the amortization plan. It can be a very risky product in the event of rising market rates; on the other hand, if the rates are falling, it allows you to benefit from the reduction of the installment.

Choose the variable rate if you are able to withstand an increase in the periodic installment of up to 30%.
There are also mixed rate products on the market that mix characteristics of the fixed rate and the variable rate, for example variable rate mortgages or those that can be renegotiated at pre-established intervals. Beware of spreads that are typically higher than a variable mortgage.

Today the fixed rate is very interesting ; it has very low values ​​and therefore ensuring a constant installment for the duration of the mortgage today costs little more than a variable rate.

• The indicator to consider for choosing the best mortgage is the Taeg(annual percentage rate of charge) which includes in addition to the Tan (nominal annual rate) also the expenses of the loan (preliminary investigation, appraisal, compulsory insurance, taxes). Warning: in the case of a variable rate mortgage, this is a value destined to change with changes in market rates.

• Remember that you can always change your mind . You can pay off your mortgage in whole or in part without charge and switch banks using the free mortgage subrogation (i.e. the transfer of the mortgage to another bank at no cost). Today this operation, for mortgages opened a few years ago, can be very interesting; changing can save many euros in a year .

• To get a mortgageyou must not be obliged by the bank to open its bank account or to purchase non-life and / or life insurance policies sold by the bank itself. It is an unfair practice to which one can say no.

• If you have any problems whatsoever, it is your right to make a written complaint to the bank. The bank must reply to you within 30 days; or if he does not give you a satisfactory answer, then you can make use of banking and financial Arbitrator

• The bank typically does not deliver a mortgage that has a higher installment of 33% of your monthly income. To increase this value you need to have additional guarantees with respect to the mortgage registered on the house: for example the guarantee of a third party.

• Other limit: the bank almost never pays more than 80% of the appraisal value of the property . This means that in order to buy a house, you need to have at least 20% of the house value plus more money to cover taxes, notary fees and any costs of the real estate agency.

• To have a lower periodic installment you can choose a longer duration of the mortgage. However, know that extending the duration also increases the amount of interest to be paid and therefore it would always be good to prefer shorter durations. There is a shortcut; if you manage to accumulate some money, you can pay off your mortgage in whole or in part. Always an economically convenient operation.

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