Carlos and Laura are a young couple, 29 and 28 years old, who need to take out a mortgage to buy a home. They have a very good salary and some work experience as computer consultants, but since their savings are not too high, they need the bank to finance up to 90% of the acquisition. For this reason, they got down to work and visited several entities, compared their proposals, and reduced the possibilities to two offers: one from Kutxabank and the other from BBVA.

A priori, the first seemed cheaper than the second, although it had a longer small print. So, as they were not sure which one was more convenient for them, they contacted HelpMyCash.com and allowed us to make a comparison between these two mortgages. After doing it, we concluded that the intuition of these two users was correct, as we will see below.

Write down all the information to make the comparison

The first thing we did was organize the conditions of both loans in a table to be able to compare them properly. This was, in broad strokes, how we structured our comparison.

Make a comparison of the conditions and assess which option is better

Once the conditions of both offers have been placed face to face, it is time to assess which mortgage is more advantageous. After analyzing these two proposals, HelpMyCash.com reached the following conclusions:

• During the first year, Kutxabank applies a lower interest in any case (1.30% compared to 1.45% or 2.45%). In addition, the bonus is applied without the need to meet any requirements.
• In case of not contracting the products that these two banks offer to lower the rate, the interest of the Kutxabank mortgage is also lower than that of the BBVA loan.
• On the other hand, in the event of contracting the products to obtain the maximum discount, the price of the Kutxabank mortgage continues to be lower, as reflected in its discounted equivalent annual rate (APR).
• This entity also makes it easier to get discounts: the interest can be lowered for being under 35 years of age, for using a simple credit card…
• BBVA, on the other hand, requires you to take out at least one insurance (home or life) if you want to get a discount.
• Kutxabank gives you more freedom to decide the additional products that you want to sign up for. BBVA, on the other hand, is more rigid with bonuses.
• Kutxabank does not have bonus packages, that is, it does not require contracting two or more products to get any of its discounts (something that BBVA does with direct debit payroll and home insurance.
• Finally, BBVA does not charge a commission for early repayment, while its competitor does.

With all these data on the table, we were able to conclude the same as Carlos and Laura: that the Phh mortgage is more advantageous than the BBVA one since it is cheaper in the short and long term in practically any scenario.

It is not a perfect loan, because by having a commission for early repayment, this young couple will have to pay money each time they advance part of the mortgage. This shows that the perfect offer does not exist, so it is convenient to assess what is considered most important in a mortgage (in this case, the price and the financing of up to 90%) to make a decision that suits our needs.