Home insurance, cards, life insurance … These are some of the products offered by entities when a mortgage loan is to be signed.
Most banks give certain incentives, such as a reduction in the interest rate, if several products of the entity are contracted with the mortgage loan.
To curb bank abuse with linkages, the reform of the Mortgage Law was passed last year to regulate products linked to mortgage loans. The entity cannot demand its hiring as a sine qua non condition in the granting of the mortgage, although it can offer improvements in the conditions of the loan.
The future mortgage holder will have the last word when deciding whether to hire a product or not. The best thing in these cases is to make accounts and for this you have to keep in mind that the bonus will be different depending on the product that is contracted.
Types of links
- Payroll: This is the most common link when applying for a mortgage which, in addition, will not incur any cost.
- Direct debit: Depending on the bank you will be asked to direct one or more receipts (electricity, gas, water, telephone, etc.). This link will not imply any financial outlay.
- Credit or debit cards: Normally your hiring has no cost but the entity will probably require you to make a minimum expense per year.
- Payment protection insurance: They are usually a single premium insurance that guarantees the bank to receive the monthly payments if you do not have the necessary payment capacity to meet the monthly payments. Generally, the price is quite high.
- Life insurance: Your hiring will allow the bank to secure the mortgage payment in case of death. Its price varies greatly depending on the profile of each applicant.
- Multi-risk home insurance: protects the home from virtually any incident and its price varies depending on the coverage chosen.
- Pension plan: the minimum contribution requested by the entities revolves around $ 600, although it will depend on each entity.
Cancellations of the links
All products that are contracted with the mortgage can be canceled. As a general rule, you have to wait a year to do it. The client must notify the insurer, within two months, the cancellation of home or life insurance.
It must be taken into account that the cancellation of these products may involve the payment of some interest by the entity. It is very important to know the fine print of all the links so as not to take any fright.
Pending the full approval of the new Mortgage Law, some entities have started promoting their mortgages without ties. In this way, not having linked products means that the mortgage does not increase its final price.
In order to access these loans, certain requirements which are usually stricter than in other cases must be met. Entities often ask for higher incomes and job stability. In these cases, saving is very important, as well as not having previous debts. They are not very different requirements, although they are stricter in compliance.