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Good evening, I’m looking for some guidance on exorbitant costs being charged by Cajamar. I took a small mortgage of 32,000€ with them to purchase our Spanish home. The repayment and rate are fine, but every year they hit me with 2 ‘compulsory’ charges. 350€ for property insurance and 320€ for life insurance! Anyone had a similar experience and been able to ditch? I’ve already paid these costs twice, so big money paid already.
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Posted: Wed Apr 19, 2023 7:13pm
Super helpful member
Most lenders would insist on life insurance and property insurance. Did these charges come as a surprise to you?
Of course I want to insure my property, but I’m thinking that I can do so elsewhere for much less.
Posted: Wed Apr 19, 2023 8:18pm
Super helpful member
Although everyone does not have the same risk factors those premiums seem reasonable to me.
Looking on the bright side you are probably getting free banking with them for taking these products.
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Roland wrote on Wed Apr 19, 2023 8:27pm:
Looking on the bright side you are probably getting free banking with them for taking these products.
Quite right Roland. That is an upside in fairness!
Paul121 wrote on Wed Apr 19, 2023 7:06pm:
Good evening, I’m looking for some guidance on exorbitant costs being charged by Cajamar. I took a small mortgage of 32,000€ with them to purchase our Spanish home. The repayment and rate are fine, but every year they hit me with 2 ‘compulsory’ charges. 350€ for property insurance and 3...
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...20€ for life insurance! Anyone had a similar experience and been able to ditch? I’ve already paid these costs twice, so big money paid already.
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That’s the norm with cajamar.
Posted: Thu Apr 20, 2023 9:59am
You can always cancel the life insurance if you don’t need it.
Posted: Wed Apr 26, 2023 12:31pm
Hi I am an investment Banker and it is not mandatory to take out buildings insurance directly with your bank as they as you can see rip you off. I took mine out with a broker in Spain and happy to share the details and it’s about €330 but my place is worth €550000 so you can see your would cost a fraction of what your paying and this firm is reputable and regulated so total comfort and they speak English.
Posted: Wed Apr 26, 2023 1:25pm
Super helpful member
Dutch090163 wrote on Thu Apr 20, 2023 9:59am:
You can always cancel the life insurance if you don’t need it.
Unless it is in the terms & conditions of the mortgage contract, when they may be entitled to request full repayment of the loan plus penalties?
It is not the borrower that needs it, but the lender, to ensure repayment should the borrower die.
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