Fixed vs. Variable Rate
No universally valid truth rules, obviously! But we can start by saying that the choice between fixed and variable rates depends on our risk tolerance. On the one hand, when we accept the possibility of an increase in the installments of our mortgage (in order to save when the rates are low) then we can move forward forwards on variable rates. On the other hand, if the next morning Euribor quote becomes a night terror, just prevent all fears chosing fixed rates.
You will need to find the most convenient mortgage offers, then request the Esis form to the bank – it’s a fully detailed mortgage plan which contains the conditions and the cost of the loan. By comparing Esis forms you will easily understand differences between lending institutions.
Watch out for the Taeg, the real cost of mortgage! It is essential to always base your comparison on the Taeg, i.e. the global effective annual rate. It indicates the real cost of the mortgage because it includes the Tan (nominal annual rate) and all the expenses (appraisal, preliminary investigation, installment collection, compulsory insurance, taxes various). The Taeg is reported on Esis, since it follows an European standardized model form.
Send a request to be contacted by one of our consultants who can take you through all aspects of your situation and check on contract details and conditions.