Negotiate his immo loan
April 15, 2019
Discover the tips for negotiating your mortgage and benefit from more advantageous terms.
Get a good credit rate
The borrowing rate offered to you by the bank depends of course on your profile and the nature of your request.
The more your personal contribution will be, the more you will get a low rate. This is perfectly logical because the bank is exposed to less risk … Also, the longer the loan period, the higher the rate of your credit because the risks increase over time.
Regarding the risks you represent, the bank will also study your level of indebtedness. Generally, it hardly accepts a debt ratio higher than 30% of income. Then you should know that if the bank manages your bank accounts, it will more easily make an effort.
Negotiate ancillary costs
In order to make a comparison and a negotiation, you must not take into account the posted rate but the overall effective rate (APR), which is the actual rate of the credit, including all fees: filing fees calculated as a percentage of the credit, cost borrower insurance, and other guarantees
It is important to go to several organizations to review the proposals and negotiating opportunities by highlighting the offers of the competition and highlighting the strengths of your profile. After you have negotiated the best offers and you have a written proposal, do not hesitate to repeat the competition to try to get even more benefits and choose the best offer. And perform several online simulations to target what best suits you in terms of borrowed capital, borrowing rate and repayment term.
You can be granted rate advantages, but not only! Indeed, you can also negotiate the file, the cost of your insurance or ask that the prepayment penalties are lower or canceled.
In case you are a knowledgeable trader, you can offer the bank to replace its group insurance contract with an offer from the loan insurance company of your choice. This can help you reduce costs significantly. Be aware that some borrowers, the least risky profile, indeed manage to save up to 20,000 euros on the overall cost of their home loan!
Finally, you can use the help of a mortgage broker to negotiate for you the best terms with banks and credit agencies. You do not usually have to pay the broker’s service because the broker is paid by the bank if you sign the offer you have chosen from all the offers he has submitted to you.