The concept of opening commission refers to the amount of money that a financial institution charges at the time of formalizing the loan and whose justification is to cover the administrative and management expenses of the loan.
The opening commission serves to promote a good interest rate, that is, a product with a very low interest rate. At the same time, this is used to trigger the opening commission.
Calculate opening commission
Given its fluctuation, it can range between 0% and 3% of the total amount of the loan in Mortgages at fixed interest and from 0% to 1% on variable interest mortgages. It is considered a kind of impuesto, largely because it is not understood that formalization expenses can change so much from one entity to another.
The opening commission is paid at the time the loan is contracted and even the entities themselves are in charge of financing it, including it in the total amount of money lent, for which it will pay the commission plus the interest generated by the commission itself.
In the case, for example, of requesting a loan of 100.000 euros and having an opening commission of 1%, the bank will disburse 100.000 euros, but in reality it will be 101.000 the amount financed, so the interest will fall on the 101.000 euros.
It can sometimes happen that an opening commission is more important than a few tenths above or below the interest rate. To better understand we explain it to you with an example:
A person asks for a loan worth 100.000 euros, to be repaid in 15 years in monthly installments. You have the following options:
- Option A: an applied interest of 3,5% and a commission of 1,5%.
- Option B: an applied interest of 3,65% and an opening commission of 0%.
In the case of:
- Option A: you will pay 28.678 euros for interest and 1.500 euros of opening commission = 130.178 euros
- Option B: you will pay 30.008 euros and 0 for the opening commission = 130.008 euros
Therefore, the first option is better for you despite having a lower interest rate.