When they tell us about housing in Spain and the debate is better than buying or renting, most people are clear that it is best to buy and, if you can pay in cash to avoid debts. However, this traditional mentality can play against personal finance. This is explained by Matías Galán, financial advisor and content creator (@Rumbofinanciero) in Tiktok, in one of his viral videos where he helps manage personal finances.
With a practical example, Galán launches a clear warning: “Don’t even think about paying the entire house.” The reason, he says, is how a mortgage works.
“The mortgage is the cheapest debt”
For Galán, borrowing in this case is not negative, but an intelligent decision. “A mortgage is the cheapest way to ask for money from the bank. Today they could give you 3%.”
The trick, he explains, is to take advantage of his own capital to grow instead of immobilizing him in the house. “If you invest that money in a financial tool that gives you more than 3%, which is superfacile to overcome, you could be paying the house only with benefits. That is, you would get free.”
A change of mentality in investment
The advisor’s proposal breaks with the usual thinking of “the less debt, the better.” For him, the important thing is not to avoid the mortgage, but to use it strategically so that money generates more money.
In a context of moderate types and with accessible investment alternatives, it recommends considering mortgages as a financial lever rather than a load.
Galán’s message is part of a growing trend: young people are increasingly looking for financial education in social networks to make intelligent decisions about savings, investment and heritage.