The spread is one of the components of the housing loan interest rate and can have a significant impact on the monthly payment and the total cost of the loan.

If you took out your loan several years ago, you may currently have different conditions than those practiced in the market. In this case, it may be worth checking if there is room to improve your spread.

The spread is the margin set by the bank, together with the index, such as Euribor, which determines the interest rate of a variable or mixed-rate housing loan during the period when the variable component is in effect.

A higher spread may mean a higher payment, but you cannot assess the cost of a loan just by the spread. It is also necessary to analyze the index, the term, the insurance, the fees, and the TAEG.

What is the spread?

In a variable-rate mortgage, the interest rate is usually the combination of the index and the spread.

For example, if a contract has an index of 2% and a spread of 1%, the TAN will be, in simplified terms, 3%.

If the spread is reduced to 0.7%, keeping all other conditions the same, the TAN would go to 2.7%.

In reality, the payment also depends on the debt capital and the remaining term.

Does a lower spread always mean a cheaper loan?

Not necessarily. This is one of the main traps when comparing offers.

A bank may offer a lower spread, but charge more for other products or services related to credit.

That's why you should compare the offer as a whole. The TAEG is especially important because it allows considering different costs associated with credit, although it is necessary to check exactly which charges are included in the offer.

How to know if your spread is high?

There is no universally suitable spread for all customers.

Terms may vary according to the customer's profile, the financed amount, the property value, the ratio between financing and house value, associated products, and the bank's commercial policies.

That's why the best way to understand if you have competitive conditions is to compare your current situation with available offers for a similar profile.

Can I renegotiate the spread?

Yes. You can contact the bank and request a renegotiation of the loan conditions.

A reduction in the spread can lead to a decrease in the interest rate and, in certain situations, the installment.

However, renegotiation depends on an agreement between the client and the institution. The bank may also present different conditions if the client accepts certain products or meets requirements outlined in the contract.

What if the bank doesn't lower the spread?

An alternative may be to analyze transferring the housing credit to another institution.

Transferring involves comparing the new proposal with current conditions and considering all costs associated with the operation.

It is important not to look only at the spread difference.

To compare:

TAN

APR

Monthly payment

Remaining time

Fees

Insurance

Associated products

Total amount to pay

How much can you save with a lower spread?

The impact mainly depends on the debt amount and the remaining term. A 0.5 percentage point difference can have a significantly different impact on a 50,000 euro loan and a 250,000 euro loan. Therefore, there is no single answer to the question "how much can I save?" Poupança no Minuto

The best way to respond is to compare the current credit with a concrete proposal.

Don't just look at the payment

A reduction in the installment may seem immediately advantageous. But if this reduction results from an increase in the term, the total cost of the credit may increase. Similarly, a proposal with a slightly higher installment may have a lower overall cost if it has better interest rates and fewer fees. The goal should be to find a balance between monthly payment and total cost.

Do a simulation

Do you have a housing loan and want to know if there are alternatives to current conditions?

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