1. Look at the APR, not just the rate
The APR includes fees, linked insurance and other costs. A mortgage with a 2.40% rate can have an APR of 3.20% if it requires expensive insurance. To compare mortgages honestly, look at the APR.
2. Calculate the real cost of requirements
Direct debit of your salary is free for you. But home insurance with the bank can cost €400/year more than an external equivalent. If it reduces the rate by 0.15 points on a €200,000 mortgage, the annual interest difference is €300. In this case the requirement costs you €100/year more, it doesn't save you money.
3. Term: the shorter, the less you pay in total
Taking a 30-year mortgage instead of 25 reduces the monthly payment by 10-12%, but you pay 35-40% more in total interest. If you can handle higher monthly payments, shortening the term saves you thousands of euros.
4. Don't sign the bank's first offer
Banks always have room to improve their initial offer. Having multiple binding offers on the table is what pushes them to lower the rate. That's why an independent broker like GC Finance does better: we approach 5-7 banks simultaneously with your profile.