5:00 p.m., September 11, 2021
Mortgage borrowers tend to shine the spotlight on interest rates alone. But other points of attention should be considered before signing. And first, loan insurance. The cost of this guarantee, which provides for the repayment of the credit if the borrower dies, becomes disabled or is made redundant, must henceforth be included in the calculation of the debt ratio. “With the fall in interest rates, this insurance weighs more and more heavily in the total cost of credit. It is necessary not only to negotiate the interest rate of the borrower insurance, but also the clauses related to its level of credit. protection against risks “, urges Philippe Taboret, deputy CEO of the broker Cafpi.
Through competition, the borrower is free to prefer individual insurance to the group contract offered by the lender, on condition that it provides equivalent guarantees. “It is not always wise, for a client who has completed his loan budget with a good rate to the key, to enter again in the arena with his banker to hope to save a few tens of euros”, notes Ludovic Huzieux, associate director at Artémis courtage. Especially since it is possible to change loan insurance afterwards.
Reduced prepayment charges
This is also the time to negotiate the reduction, or even the elimination, of early repayment indemnities. “In the event of resale before the term of the loan or if it is filled thanks to an early cash inflow, the bank applies to the borrower penalties which cannot exceed six months of interest on the capital repaid in advance. or 3% of the outstanding capital, knowing that it is the lower amount between these two calculations that is used “, explains Cécile Roquelaure, director of studies of Loans. “It will always be possible to try to negotiate a posteriori. But the margin will be narrow, the bank being able to force the borrower to take out his next loan at home,” warns Ludovic Huzieux.
It is also necessary to find out about a possible modularity or postponement of monthly payments, in the event of a decrease or increase in the borrower’s repayment capacities. “These provisions, not systematically proposed, nevertheless meet conditions specific to each bank and are non-negotiable,” warns Cécile Roquelaure.
Finally, nothing prevents checking whether the loan transfer clause, which offers the possibility of subsequently moving one’s first mortgage to a new property, appears in the initial contract. A very supervised option and rarely put forward by credit institutions.
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