The price of housing has become a headache for many Spaniards, especially for those who are interested in buying a house or apartment. And it is no longer only important to find the ideal homethere is also concern about how to pay it, and to do so, many need to resort to a mortgage. In this sense, many doubts arise, from how to gather the necessary savings for the down payment to what strategies to follow to face the installments more comfortably once the loan is signed.
To this end, savings have become a key factor not only for those who want buy your first home financing it with the bankalso for those who are already mortgaged and want to improve their financial stability.
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This October 31st marks World Savings Day, a date that invites us to reflect on the importance of properly managing personal finances. On the occasion of this day, Francisco Santos, Head of Business Development of Baytecahas explained to NewsWork the best strategies and the mistakes that should be avoided when saving for a mortgage or during its payment, highlighting that good planning is essential for the financial health of any home.
Saving for the down payment of a home
Saving for the down payment on a home continues to be one of the biggest challenges for Spanish families. Santos explains that it is necessary to plan with time and realism so as not to destabilize the domestic economy.
“At Bayteca we always recommend establishing a specific savings goal, normally around 20% of the value of the home, plus associated expenses (notary, registration, management, taxes) that can amount to another 10%.”
One of the most effective strategies to gather the money necessary to pay as a down payment on the mortgage is to automate savings, that is, allocate a fixed amount each month to a separate account, as if it were just another expense.
The expert also advises adjusting expectations from the beginning. “Buying a first home does not mean acquiring the definitive one; starting with a more affordable property allows you to enter the market and build wealth progressively,” he adds.
The most frequent mistakes, according to Santos, are not calculating total expenses, overestimating savings capacity or relying on unstable income. “Medium-term planning and professional support help avoid financial tensions,” he points out.
The importance of planning before signing a mortgage
For Francisco Santos, planning is synonymous with saving. “A mortgage is not just a financial product, but a long-term planning decision,” he explains. Before signing, it is recommended to analyze the level of income, recurring expenses, professional and family horizon or the level of acceptable risk.
“Good planning allows you to choose the most efficient mortgage structure and anticipate the total costs of the loan, not just the monthly payment. The above translates into significant savings in the long term, because you avoid paying for unnecessary products or uncompetitive conditions”
Santos affirms that there are more and more families who are interested in knowing what they can take on before committing. “The trend points towards greater professionalization of the financial process, with households seeking stability and clarity before signing,” he concludes.
How to save when negotiating a mortgage
Although the interest rate is a key element, Santos warns that it is not the only determining factor. “Many buyers focus only on the interest and neglect elements that can make the loan more expensive, such as opening fees, linked insurance or mandatory additional products,” he explains.
To save, he recommends comparing offers and, if possible, seeking specialized advice. “A good financial intermediary can obtain more advantageous conditions, reduce associated costs and optimize the loan structure. An advisor translates financial jargon into the client’s language and avoids hidden costs,” he points out.
Euribor down: an opportunity to reinforce savings
Looking ahead to 2025, with the drop in the Euribor, the expert believes that mortgage holders should act prudently. “This is not the time to get complacent, but to strengthen the financial position by taking advantage of the temporary respite,” he warns.
From Bayteca they recommend three key steps:
- Amortize capital if liquidity is available, to reduce the term or total interest.
- Strengthen the savings cushion for emergencies.
- Review the conditions of the loan, studying a possible subrogation or renegotiation to improve rates.
“The current context is favorable, but the European financial environment remains volatile. The best advice is to use the drop in the Euribor as a planning opportunity, not as an excuse to relax financial control,” concludes Santos.