I was recently talking to a client who was buying a property in Mijas and had just signed a mortgage with the bank he’d used his whole life. He was happy: after all, it’s the bank where he has his salary, his cards, even his car insurance. “They know me,” he told me. “They gave me a good rate.”
I asked if he’d compared it with any other bank. His answer was the one I hear almost every time, whether buying in Mijas, Fuengirola or anywhere else on the Costa del Sol: “No, why would I? They already know me.”
Your usual bank is still a bank
Here’s the problem: however much you trust them, your usual bank is still an institution looking for a profit. Their staff, however friendly and approachable, have a job to do: selling products and services — mortgages, insurance, pension plans, cards. They’re not there to get you the best mortgage on the market; they’re there to close a deal that’s profitable for the bank.
That doesn’t make them “bad”. It’s simply how the business works. And it means something very concrete for you: it’s very likely that the first offer they give you isn’t the best they can actually offer. Banks tend to keep some room for negotiation, and if you accept the first offer without comparing, you’ll almost never know how much you left on the table.
What to do after your bank’s mortgage study
My recommendation is simple: ask your usual bank for their mortgage study, as you always would. But don’t sign there. Afterwards, check with other banks. And even better: consult a mortgage broker who specialises in your area.
A mortgage broker doesn’t sell a single bank’s products. Their job is to know, in real time, which bank can offer you the best mortgage for your specific profile — your income, your savings, your employment situation, the type of property you’re buying — and what conditions each lender has at any given moment. It’s information they handle daily, which you, as an individual, have no way of comparing on your own.
Buying in Mijas, Fuengirola or the Costa del Sol: why comparing matters even more
In a market like Mijas, Fuengirola, Málaga and the rest of the Costa del Sol, with such high demand — domestic buyers, international buyers, second homes, investment — each bank adjusts its terms differently depending on the area, the type of buyer and its own commercial targets at the time. A branch in Fuengirola may have a different negotiating margin than one in Málaga city, and a broker who works daily with buyers in the area knows those differences better than anyone.
If you’re looking to buy a property in Mijas Pueblo, Las Lagunas, La Cala de Mijas, Mijas Golf, Fuengirola or any municipality on the Costa del Sol, don’t let financing be the one thing you don’t compare.
How do brokers get paid?
This is a common question, and it’s worth answering: mortgage brokers usually get their fee from the bank, or from you, only if you end up accepting the option they propose. If you accept it, it’s because, adding the offer and their fee together, it’s still worth it compared to what you had. There’s no small print or surprises: if it doesn’t work out for you, you don’t sign and you don’t pay anything.
The difference shows up every month, for years
You might be thinking: “it’s just a few euros a month, not worth the hassle.” But let’s do the maths. A difference of a few tenths of a point in the interest rate, or better terms on fees and linked products, translates into a monthly saving that, multiplied over the 20, 25 or 30 years of your mortgage, becomes a very significant amount of money.
And where would you rather that difference sit? In your bank’s profit margin, or in your pocket?
Don’t settle
This isn’t about distrusting your bank or making your life complicated. It’s about spending a little time — the same time you’d spend comparing prices before buying anything else important — to make sure the mortgage you’ll be paying for the next 20 or 30 years really is the best one you can get.
If you’d like help getting in touch with professional mortgage brokers in Mijas, Fuengirola and the Costa del Sol, write to me, or check my mortgages page directly, where I collaborate with Idealista Hipotecas to offer you a free, no-obligation study.
As a real estate agent in Mijas, Fuengirola and the whole Costa del Sol, I work with both buyers and owners who want to sell at the best price, and financing is a key part of getting the deal to a good outcome for both sides.
Want to compare before signing your mortgage?
Call me, no obligation. +34 613 075 633
Or visit www.fernandezariza.es
Specialist in Mijas, Fuengirola and the surrounding area.