There are several ways you can buy a home. The most common is bank financing. But even this modality has some variants.
Now, one of them stands out from the others: housing loans with variable rates. In this matter we will give tips on how to take advantage of the moment and guarantee a good deal to acquire the property of your dreams.
A matter of economy.
The vast majority of Portuguese properties are financed through mortgage loans with variable rates. In practice, the bank lends money and interest, which will influence the value of the installments, are calculated using some economic index.
A large proportion of financial institutions use the European Central Bank’s Euribor rates. And, according to experts, the contracts made with this index, tend to remain negative until 2026. In practice, this means easier for those who are going to buy and even more money for those who have already made a loan.
Advantages even for those who already bought.
The main benefit of interest is the possibility of a smaller portion. Depending on the duration of the contract, this can mean significant savings.
However, this is not restricted to new financing. Depending on the clauses and the institution, the bank raises the amount of this negative interest to the buyer, because the Euribor values cancel and even exceed the bank profit margin.
A chance for the best deal.
After choosing your property at Entreparedes (https://blog.entreparedes.pt/en_gb/), you, too, will need to choose the bank where your family will apply for the mortgage. And, at this moment, a more detailed search is fundamental for the realization of a good business. Remember, this is, in principle, long-term financing. So think carefully and establish some points of attention:
- Research a lot: analyze the financing options and, mainly, the financial institutions. Are you already a customer of any bank? What does it offer? Are you satisfied with your relationship? Ever needed to talk to a bank professional to ask questions and solutions?
- Talk to your friends and family: do you know someone who recently bought a property? Ask for tips and gather important information. Always having an example can be a solution that will save your research time.
Do your part. Low interest rates are attractive, but you should also organize your household and household budget. By making everything clear and reducing expenses, you will be able to realize your dream.