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Be careful, your mortgage will go up in 2021 because of this tax

Next week we start 2021, the first with the new general state budgets that hide an increase in the tax on insurance premiums.

This seems to have nothing to do with your mortgage but no one escapes from this measure since it will impact all types of insurance, from the mandatory car to the home and the problem is that When hiring a mortgage, many banks require life and home insurance. In this way, you will see how what you pay in total for your mortgage will go up by around one euro per month.

The new mortgage law, in force since June 16, 2019, makes it clear what insurance can the bank oblige us to hire (linked sale):

  • An insurance with minimum damage coverage.
  • A policy in guarantee of the fulfillment of the obligations of the loan agreement. For example, life insurance or payment protection.

In total, it is estimated that the total increase in the insurance premium (including all those that an average family has) amounts to about € 28 per year.

The vast majority of Spanish families have taken out some type of insurance. Almost 79% have auto insurance; 71.72% have hired it for their main home; 44.7% have one death and 21.3% one health.

Fortunately, this rise is accompanied by a good reduction in the Euribor, which will close December at historical lows and those who have contracted a variable mortgage will see how this decrease more than compensates for the rise in insurance.

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