The COVID-1 pandemic and incarceration in March, April, and May highlighted the needs of many families. Many have already taken over, or intend to leave the big cities and move to the surrounding areas.
Specifically, the main preference of citizens when buying or renting is a less central area, with more light and a large garden or balcony. In addition, teleworking has also influenced new tastes, since proximity to the workplace is no longer so important and we choose to work away from the bustle of the city. Therefore, it is a priority to have quieter and more open spaces.
On the other hand, it should be noted that both in Portugal and in Spain, preferences for renting and buying are very similar. But it’s interesting to see how the demand for home buying has increased, especially in a recession year.
Buying life insurance is mandatory, but you have to choose who to trust
If you’re considering buying a home, it’s important to know that life insurance is a must when applying for a mortgage. Its contracting is mandatory, however, as many believe and others have suggested, it is not mandatory to contract it with the financial institution you request.
Currently, the law requires you to purchase life insurance. But banks can’t force you to buy home loan life insurance with the insurance company of your choice.
Home loan life insurance is cheaper with insurance companies
You should have this information if you are looking for a mortgage. This way, you can be sure of getting the best possible terms without having to pay for an overpriced insurance product that doesn’t cover your needs.
In fact, banks offer their own insurance, as well as better financing terms, but even if you buy life insurance on your home loan through an insurance company or insurance broker, you may get better prices. Specifically, according to a study by INESE and Global Actuarial, the average price of life insurance for insurers is €249.26 per year, while for banks it is almost 80% higher (€446.86). In addition, life insurance offered by banks does not include the same coverage as insurance companies.
So take some time to figure out what’s most important to you when it comes to securing your mortgage. Compare prices and make sure the coverage is what interests you.
