‘Online’ Mortgages 1,300 Euros Cheaper

September 5th, 2013

The origination fee for opening a mortgage with one of the financial entities ‘online’ is 1.35% cheaper than doing so via the traditional high street banks. This percentage translates into a saving of up to 1,316 euros, based on an average mortgage of 97,495 euros, Bankimia reported in a press release this week.

According to the study carried out by Bankimia, a company specialising in the comparison of financial products online, which analyses the maximum fees charged by major online and offline entities operating in Spain, to open a mortgage, offline banks charge an average of 1% commission for the initial study and 2.6% for opening the mortgage.

These percentages are well above those offered by the online banking entities, where the initial study commission, for example, is almost nonexistent (0.06%), and the opening commission is more than one point lower, at 1.25%.

Thus, Bankimia indicated that the costs of applying for and opening a mortgage in a traditional bank would be more than double than those of an online bank.

Taking as an example the average value of a mortgage contracted during the month of June in Spain, (which was 97,495 euros, according to data from the National Statistics Institute), via a traditional bank 2,534.87 euros would be paid for opening the mortgage, while online the cost would be 1,218.68 euros, a difference of 1,316.19 euros.

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