To be able to realize your real estate project, once you have identified your needs, the first thing to do is to find a financial partner who can finance it. The purchase of a house indeed requires substantial sums of which we do not always have the necessary cash. To successfully choose between an insurance company or a bank, you have to take into account a few criteria:
● The mortgage loan interest rate
Insurance often offers a cheap mortgage rate, especially if the loan is over a long period. Banks, for their part, are less cautious. They pay more attention to risks and are more demanding in this regard. This can be explained, because it should be remembered that the credits are partly those which make their turnover.
● The clauses of the mortgage loan contract
On the other hand, in terms of certain criteria, insurance companies are a little more demanding. These may in particular be the repayment capacity, depreciation, etc. They may also ask you for equity to pledge.
● The variety of mortgage loan offers
Unlike banks which have more experience in the field, insurance companies usually only offer the basics. You can therefore benefit from a fixed rate loan or a variable rate mortgage loan. Conversely, banks offer more extensive services, such as the Libor mortgage.
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