The new mortgage that covers both the purchase and renovation in a single payment
When you buy and renovate your home to improve its energy efficiency by 30% or more, you’ll not only enjoy significant savings on your energy bills but also benefit from more favorable financing terms. Green mortgages, specifically designed to promote sustainability, offer a 0.10% reduction in the interest rate, resulting in a lower total loan cost.
Additionally, these mortgages help increase the value of your property, as energy-efficient homes are increasingly in demand in the real estate market.
Experts in mortgage management
We negotiate for you
Our clients' opinions
Had a great experience with Stefania helping us all the way through this, always available and responsive to my many questions and paranoias. We did a remortgage plus an amount for reformas which is tricky operation in spain. It took some time to achieve but we were able to make multiple applications and so select the best from the good, the bad and the ugly. Finally we found what we were looking for and were able to complete the project with a bank that we feel confident with. The broker fee seemed expensive at first but I feel it was worth it in the end as Stefania served as an alli and was able to put pressure on the bank at certain critical moments when it was needed all the way until the end.
Finally, we got it!!! After a long wait, the day has finally arrived, and all thanks to MARINA!!! She has guided us every step of the way, answered all our doubts at all times, undoubtedly a great professional. She has achieved what we wanted: to have our own home. A 10 out of 10 and 100% recommendable.
Muy agradecido a mi analista Ginés que desde el primer día me trasmitió confianza y sobre todo mucho interés porque la operación se adaptara a mis necesidades .totalmente recomendable, te consiguen algo que ni tu banco te puede dar.volvería a contar con ellos en un futuro.
Frequently asked questions
What advantages can Afinance offer me?
There are many advantages when requesting management services from aFinance. No financial operation is too difficult for this great team of experts.
aFinance is a consulting company with over a decade of experience, known for offering personalized and high-quality service.
One of aFinance's strengths is Mortgage Loans. We offer a free, no-obligation study to help you obtain the best market conditions. What sets us apart is our management process, which does not generate fees during the mortgage setup process; these fees are only incurred at the moment of signing before a notary, and they are included in the total financed amount of the mortgage loan.
At aFinance, we also specialize in debt consolidation or refinancing. With this new financial operation, we consolidate all debts (Mortgage, loans, credit cards, bills, etc.). The result is a single, lower monthly payment, which allows us to increase our savings capacity.
For all the reasons mentioned, when acquiring a mortgage or personal loan, it will be beneficial to consider aFinance’s services to secure the best benefits available on the market.
How to request a Mortgage?
Mortgage loans are the best way to finance the purchase of a home, as this serves as the main guarantee of repayment of the amount requested. Since Afinance advise and follow 3 basic steps to choose the best option adapted to their profile.
STEP 1
Before applying for your mortgage you should consider the following:
- You should note that there are tax advantages depending on the age of the holders of the operation and the type of property purchased (new or second-hand work).
- Having a cosigner is always a good guarantee in the face of various entities and offer always guarantee better conditions
- The employment situation of the holders of the operation is one of the deciding factors as to greater job security, less risk of default and therefore, better conditions
- Entry or contribution available for the operation is another decisive factors in achieving a type of differential or other
- Finally, if you are a community but its revenues come from outside the Spanish territory, the minimum contribution required for the operation is 20% of the property price, plus the cost of the operation.
STEP 2
You should note that today, mortgages granted between the different entities can be classified into three groups that define the proposed differential and conditions of these together with the above information.
These three groups are:
- Premium Mortgages: are operations in which the input or contribution is 20% (or more) of the price of housing plus expenses, ie it is funding ≤ 80% of the amount of buying and selling
- Mortgages 100: characterized by customers who bring the costs of the operation and fund 100% of the property price.
- 100% mortgage + costs: where the whole operation is financed.
STEP 3
Choosing a professional to help you make the best decision when investing in a mortgage.
In aFinance we offer professional care that we have cultivated for more than a decade of experience and background in the Spanish financial and real estate sector, especially in Catalonia.
Mortgage Subrogation
t is a modification of one of the factors of the mortgage, whether from the debtor or the creditor. If it is from the debtor, it involves changing the mortgage loan holder. This is the most common case when purchasing a property that already has an existing mortgage.
The bank will carry out a financial assessment, as if it were a new mortgage loan application. Once the modification is approved by the bank, we will save on the taxes related to the mortgage, but we will still have to pay for expenses such as: notary fees, administrative fees, registration, and a subrogation fee that was already specified in the initial mortgage loan contract.
Another case is the subrogation between banks, which consists of transferring our mortgage from one bank to another with the aim of improving the loan terms.
In this case, we will also incur notary fees, administrative fees, registration, and the subrogation fee, which must currently be lower than 0.5% for operations formalized after April 2003.
Finally, we have the scenario of purchasing a newly built property. It is common for the builder to have taken out a mortgage to finance the construction through their bank. In this case, the buyer can choose to either take on the existing mortgage or not. If we choose not to keep the existing mortgage, the builder will cover the costs of mortgage cancellation.
100% Mortgages + Expenses
Since the crisis unfolded, both banks and savings banks have become much more cautious when granting mortgage loans to their clients.
During the boom years, when the real estate bubble was unleashed, most financial institutions offered up to 100% of the property's appraisal value and, in some cases, even more, financing the purchase expenses. However, nowadays, it is common for clients to contribute at least 20% of the property value from their savings.
Despite this, in recent months, due to the decrease in the cost of financing, we can find institutions offering up to 100% of the property's price—not only for properties from their own real estate portfolio but also to clients who request it. For now, this is not a widespread practice, but mortgages with a high loan-to-value ratio are already available on the market.
In general, the current offer is quite limited, though it is expected that offers will increase due to the high competition between financial institutions. Since they can’t differentiate by offering a lower interest rate, they will likely opt to offer a higher percentage of the property's value when granting the loan for its financing.
There are other options when choosing a mortgage, such as fixed, variable, or mixed-rate mortgages. Within these options, many have excellent conditions but come with excessive attachments, and they only end up financing the 80%, which is the most common when talking about mortgage loans.
Mortgages for career civil servants
Being a career civil servant is the ideal client for banks when applying for a mortgage loan, and it will allow you to secure the best possible mortgage conditions, especially if you approach financial institutions that have special agreements for public administration workers.
The stability offered by these employees is a factor that banks consider when reviewing the loan application. They can obtain the following conditions:
- Lower differentials: Variable mortgages for civil servants have lower differentials, meaning the final interest rate will be lower.
- Less commitment: Minimal requirements, such as only contracting insurance and direct deposit of the salary. The same bank could request up to 5 products from a non-public employee.
- Higher financing: The bank is more likely to approve a 100% mortgage due to the increased payment guarantee.
Of course, you must be a civil servant with no prior personal debts, significant savings, the possibility of guarantors, and the home you want should not cause the mortgage payment to exceed 30-35% of the net income of those purchasing.
We recommend comparing all the offers provided to ensure you get the best mortgage. To do so, you can turn to a financial intermediary who can advise you on the wide credit market.
