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In contrast to what is happening in the Spanish economy, after several difficult months caused by the COVID-19 pandemic, many banks are advertising and encouraging real estate loans by lowering interest rates.
Mortgages in Spain have never been as cheap as they are in this year of 2021. Financial companies are also encouraging and offering lower interest rates than ever within 20-30 years, because it is obvious that not only individuals and many companies have made minor transactions with money, but also the real estate market along with the financial market has seen minor movements.
Banks, on the other hand, are left with a lot of liquidity, which is not always as profitable as it seems, but also expensive!
Many banks, issuing loans, charge interest rates, and the basic coefficient used to calculate mortgage loans and loans for real estate investments is Euribor.
Since February 2016, Euribor has been negative, which means that banks may have to pay interest to loan or credit holders. One of the reasons for the negative indicator was the manipulation of rates by some banks, which, after investigation, led to an operation to impose fines and penalties in the amount of more than 1.7 billion euros.
Investments in real estate
It is quite clear that now is the time to take advantage of some of the best mortgage and lending terms that banks and other providers have ever offered.
Right Casa Estates will not only be able to offer a portfolio of apartments, houses and villas when buying real estate, but also, thanks to its real estate / finance experts, will be able to advise you in the process of finding the best conditions offered by banks.
Interest rates may be some of the cheapest now, but the requirements to obtain a mortgage are a different matter and many banks have tightened their criteria to issue mortgages.
Banks offer up to 80% of the total value of the house you want to buy, which means that generally, you should have 20% plus taxes, have a stable job situation, a permanent contract with a solvent company, and of course, have a sufficient salary to pay contributions and have little or no current debt.
Many banks also offer better terms (rates) when you buy additional products like life and house insurance, get paid directly into an account, and invest in retirement funds.
All these products, which, on the one hand, allow us to save on mortgage interest, on the other hand, cost a lot of money for the entire term of the mortgage (25-30-40 years).