One of the dilemmas that we will face when looking for a mortgage is whether it is convenient for us to take out the insurance offered by the bank: home, life, payment protection… And many entities will only offer us a good interest rate if, in exchange, we sign these products with their partner insurer. To resolve this dilemma, in this article we explain in which cases it is better not to subscribe to them and in which others it may be a good idea.
When is it better not to take out bank insurance?
Although it allows us to reduce the interest on the mortgage loan, taking out insurance (or several) from the bank is not always convenient. Let’s see in which situations it is better not to subscribe to one of these products:
- If the discount is not worth it, that is, if the reduction in interest barely makes the mortgage cheaper or if, despite this reduction, the credit is more expensive than the price of insurance.
- If the premiums of the policies are much more expensive than the average. In this case, it may be better not to contract them or to subscribe them with an insurer that charges us less.
- If we are not interested in your coverage. Logically, it is never advisable to contract products that we do not need.
- If we prefer not to tie ourselves to the bank. To maintain the reduced interest, it is essential to maintain the insurance contracted throughout the life of the mortgage. If we are not willing to assume that level of commitment, the most appropriate thing will be not to sign them.
What entities do not ask to hire them?
If we find ourselves in any of these cases, we can look for mortgages that have attractive conditions without the need to sign the bank’s policies. Although few entities offer loans of this type, there are a few banks that do grant them: COINC, MyInvestor, Hipotecas.com…
Hipotecas.com, for example, is one of the few finance companies that does not ask us to contract other of their products to obtain good conditions. In addition, it does not charge commissions of any kind.
Attention! All entities will force us to take out damage insurance, although we can sign it with any company.
When is it convenient to take out a mortgage with insurance?
In other situations, however, we may be interested in taking out a mortgage with associated insurance. Let’s see which ones:
- If the interest is lowered considerably and the mortgage, as a whole, is cheaper than if we did not sign those policies.
- If the price of the premiums is competitive if we compare it with those offered by other insurers.
- If the coverages seem adequate and adapt to our needs. For example, if we want to protect our children, life insurance can come in handy.
- Yes, for convenience, we prefer to have all our products in the same bank.
What banks have good offers of this type?
If our profile fits any of the aforementioned assumptions, many banks can give us a good mortgage if we take out one or more insurance policies. It is important, yes, that we compare several offers to find out which one would be cheaper.
A good option, for example, could be the BBVA Fixed PHH Mortgage. This has an interest of between 1% at 15 years and 1.45% at 30 years, which is subsidized by one percentage point in exchange for direct depositing the payroll and taking out home and life insurance (there is no opening fee ).
Attention! If we contract an insurance (or several) with an annual premium, the insurer can raise the price every 12 months. If you do, we have the right to cancel the policy, although in that case, the interest on our mortgage will rise by the points indicated in the deed itself.
