Cheaper mortgages if you negotiate with the bank: keys to get the best deal | My money

The impulse that the real estate after Covid-19 has led to the granting of mortgages, in a context in which offers are also very competitive due to low interest rates. Experts agree that it is a good time to get into debt and to ask for a mortgage loan, with the banks in full battle for customers. The prospects for low rates for a long time have pushed financial institutions to offer the lowest prices in history (around 2.5% on average, according to Statistics), but if the client also has a good financial profile, they can get even better conditions. The key is to inform yourself, compare and negotiate.

Mortgages are now the flagship product of the bank. However, given the economic uncertainty that still prevails due to the pandemic, banks are selective and are inclined to lend to clients with greater solvency. Thus, they are open to negotiate and personalize their products, adjusting their offer if necessary to prevent the user from going to the competition. It is there when they lower the interests and even free from the ties, especially if the consumer presents alternatives from other entities.

The rate cuts become considerable, with fixed-rate proposals even below 1% APR, as CincoDías has been able to verify by following the negotiation process with different banks of José, the fictitious name of a father who has just signed the earnest money to commit the sale of his future home and that he prefers to remain anonymous. He and his wife, both solvent, with indefinite jobs and previous savings, have managed to get all the entities they have consulted to make them discounts compared to official prices. Some demanded a lot of bonding in return. However, in an entity that announces fixed rates around 2% APR with the maximum linkage, José’s negotiation resulted in an offer at 1.15% APR and without the need to contract products or direct payroll.

“The offers of the banks is the only thing a client can aspire to if he does not know other information. Only those who are well informed and know how to compare the multiple possibilities offered by the market will be able to get the best conditions for their mortgage “, highlights Marcel Beyer, CEO of iAhorro, who assures that” there is an important difference between what is advertised in the market and the reality to which mortgages are signed. “In his experience, looking for several options and not staying with the first offer from the bank can mean savings of up to 41,000 euros on the mortgage.” Each bank has its strategy and there are products specific for each type of profile, however, this the client does not know. We have users who come with the offer of an entity and in 70% of the cases we can improve it “, he asserts.


An example of what can be achieved by talking to banks is the notable increase in recent months in registered mortgages with changes in their conditions. The National Institute of Statistics (INE) indicates an increase of more than 200% in July compared to the same month of 2020 in this type of operations. The novations (changes in the loan with the same entity) rose 240% and subrogations (change the mortgage to another bank), 145.3%.

In general, home loans contracted between 2010 and 2015 have an interest rate of about 2% or higher, which can be easily improved with a move to another entity willing to reduce it below 1.5% or even 1%. From HelpMyCash they affirm that a mortgaged person can save about 30,000 euros on average in interest if it is subrogated to another bank.

When it comes to getting a mortgage and opting for better financial conditions, several aspects are key:

The more income and previous savings, the better: You have to have a good financial profile. If the payroll is good, there are more possibilities when it comes to negotiating. “The banks will see you with good eyes and the approval of the loan will be easier to achieve”, they assure in the online real estate agency According to the Bank of Spain, the mortgage payment must be less than 35% of income.

In addition, as a general rule, having savings is one of the essential requirements to get a loan today, since banks usually finance between 70% and 80% of mortgage loans, so that the client must face between the 20% and 30% of the total disbursement at the beginning of the mortgage. However, banks are recovering the spirit of lending with very favorable conditions and are sometimes willing to open their hand. “It is possible, although difficult, to get 100% financing of the mortgage if there are a series of circumstances. In reality, getting more or less financing will depend on the client’s profile and the bank’s criteria”, explains Anna Puigdevall, Treasurer of FIABCI Spain and general director of the Association of Real Estate Agents of Catalonia (AIC).

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Achieve a superior appraisal: A known trick to getting a mortgage if you don’t have a lot of savings is to achieve an appraised value higher than the real value of the property, a process that involves more fortune than profile. “Many banks take as a reference the value of the appraisal to grant the mortgage,” says Puigdevall, who continues that, “if you get an appraisal value much higher than 80% of the real value of the sale, in practice you will be obtaining greater financing ”.

Job stability: All in all, it is necessary to have a regular and stable income. The bank’s risk department is in charge of verifying that the client will be able to meet the mortgage payment every month without defaults or delays.

Have links with the entity: The first thing to do is apply for the mortgage at the usual entity. Being a customer, the bank has easier access to economic history. And if you also have other banking products such as accounts, insurance or pension funds and plans, there is a better chance of negotiating successfully.

Don’t lie to the bank: Not honestly providing all the information that the entity requires, such as actual income or expenses will generate mistrust when the bank finds out on its own. Just as we must go with the truth ahead, we must also demand transparency and resolution of all doubts from the bank’s sales representative.

Consult a mortgage simulator: There are a multitude of mortgage simulators in which you can enter the details of the operation and have an idea of ​​what the fee to pay would be based on the amount financed and the interest rate applied, as well as the costs of setting up the mortgage. You have to go to negotiate with the homework done, with information and ideas that are quite clear.

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It is important to check all the options: what would be paid with a variable mortgage and with a fixed one. Currently, banks are opting to offer fixed rates given the historical lows of the Euribor. With the fixed rates the client ensures peace of mind, but the entities enter more than with the variables. Choosing one option or another will depend on many circumstances, the risk profile, etc.

According to the latest report prepared by the Trioteca Study Center, a digital platform that accompanies the user on the mortgage path, applications for fixed-rate mortgages have grown by almost five points in the third quarter of 2021 compared to the second quarter , from 90.9% of the total to the current 95.1%. The median interest rate signed in fixed mortgages is 1.10%, the lowest quarterly average in 2021, while in variable rate mortgages, the average is 0.93%.

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