The mortgage loan lies

So, here are some tips:

1. There is nothing more important than the spread! – It is common to think that the spread is the most important indicator in the contracting of mortgage loans. According to the Casa_PT study, carried out by the UCI in partnership with the Portuguese Catholic University's Center for Applied Studies, this is the opinion of 42.6% of respondents, who consider the spread as one of the most decisive indicators.

This indicator must be taken into account, but it is only one of the costs of housing credit, and it is important to consider others that allow for a more global notion of costs. Therefore, when comparing home loan proposals with the same amount, term and repayment method, choose to look at these two factors: the MTIC (Total Amount Charged to the Consumer) and the APR (Global Effective Annual Charge Rate),

2. The longer the deadline, the better! – The longer the mortgage loan term, the less you pay in installments. But, calculating the interest, a longer term ends up being more expensive than a shorter term, because the period in which interest will be paid will be longer. So, in this case, bigger does not mean better, the ideal is to try to find the shortest term possible that allows you to have a benefit that you can comfortably pay.

3. I have to have a bank account to take out a home loan! – It is not mandatory to change banks or open a new account if you choose to contract mortgage loans with a bank other than your usual one. There are solutions on the market that allow you to take out a home loan, the installment of which will be debited from your usual account, without having to change direct debits and domiciles. But not everyone knows this, which is why it is not surprising that 85.2% of respondents in the "Casa_PT" study who bought a house in the last three years using financing say that they consulted their usual bank in the process.

4. Buying more banking products means I'll save money in the future! – 52.9% of those surveyed in the Casa_PT study contracted other banking products to improve housing credit conditions. However, the reductions in the spread that are obtained with the contracting of new products may not necessarily mean savings, it is necessary to analyze what costs these products have associated, looking at the MTIC and the APR with and without products. In any case, even if there is some savings, don't forget that when you agree to contract additional products to reduce the spread, you are assuming an extra commitment, so you will have to maintain these same products for the duration of the contract, otherwise the contracted spread will for the base spread.

5. Having a housing loan is compromising my quality of life – Housing credit should be a solution and not a problem, ensuring that those who hire it maintain their quality of life. Clients and entities should take into account that buying a home should be a happy moment and that, on a daily basis, there should be money left over so that the buyer can improve, maintain or compromise their quality of life as little as possible. And if a proposal calls this into question, then maybe it's not the right option. It is therefore important to carry out a pre-analysis of your financial situation to understand with your income and expenses how far you can be responsible. Better to buy a house that you can afford than a dream house that will only bring you problems.


Source: Diário Imobiliário