In terms of real estate loans, a record year has just ended: 207 billion euros were borrowed by French people wishing to become homeowners. The number of loans granted increased by 4.6% compared to the previous year, a sign of a recovery in the post-health crisis market. It must be said that the conditions were particularly favorable to borrowers, with interest rates that we had not seen so low since the 1950s. At the start of the year, however, it is good an upward tremor which is taking shape (+0.2% to +0.5%) and is explained by a context of high inflation
One constant remains: according to a study carried out by a brokerage firm, taking out a mortgage is a real cause of stress for households. Understanding the elements of a loan, finding the best rate, putting together the file: so many steps considered complicated for 65% of French people. However, everything is negotiated, and if we spontaneously think of the interest rate, there are nevertheless other levers that can be activated to save money.
Borrower insurance
Borrower insurance or loan insurance represents a substantial part of the total cost of borrowing. It is not legally obligatory but nevertheless unavoidable since it is practically impossible to obtain a loan without this guarantee.
The good news is that the price can be negotiated, in particular by bringing the competition into play: many borrowers think they should take out this insurance with the bank that grants them their loan. Wrongly, because it is indeed possible to opt for a delegation of mortgage insurance, that is to say to take out insurance external to the bank, with another company offering more attractive prices. Also note that if you have already subscribed to a banking group contract, you can proceed during the credit to a change of borrower insuranceand even move from one delegation to another.
Beyond the price, however, pay attention to the guarantees: they must be equivalent to those presented by the group contract, failing which your creditor bank is entitled to refuse it. It can be interesting and relieving to go through a broker: he will take care of comparing the offers (which is often complex to understand alone) and will accompany you in your steps.
Application fee
They represent on average 1% of the amount borrowed. They are certainly fixed in advance, but can be negotiated.
Quick Folder
The costs are justified by the time devoted by your bank to your file: if the assembly of yours required only a few appointments and was carried out with ease, you can request a reduction in these costs.
Services annexes
Very often, the banking institution will offer you additional services (savings account, home insurance, etc.): consider them with interest, you can consider subscribing to certain services and in return negotiate the free cost of the file of your loan.
Brokerage
Going through a credit broker can be an advantageous option: of course, you will have to pay him fees, but you will not pay any to your bank, and your broker will be able to negotiate the various related fees downwards himself. to your loan.
The guarantee of the loan
There are several forms of mortgage guarantees. Mortgage registration, or mortgage, is one, but it is no longer popular. Many borrowers, but also banks, prefer to use mutual guarantee companies: institutions that guarantee loans on the basis of the pooling of risks. The savings made are indisputable: on the one hand, unlike the mortgage it is not necessary to go through a notary, therefore no notary fees. In addition, in mutual guarantee, part of the contribution is paid into a guarantee fund: this part is returned at the maturity of the loan. The borrower can thus recover up to 75% of the amount of his deposit.
The repurchase of credit
Under certain conditions, it may be interesting to have your loan redeemed by another banking establishment, at a better rate. However, for this to be profitable, it is necessary to be attentive to several aspects.
The Interest Rate Gap
The repurchase of credit will generate costs, and so that these are not higher than the profit made, the difference in point between your initial rate and the new rate must be at least 0.5%.
The capital due
Also because of the costs incurred, the capital remaining due must be significant in order to be able to make a profit: below €100,000 remaining to be repaid, it is considered that the operation is not advantageous.
The progress of the loan
It is recommended to carry out this operation only during the first third of the loan, during which the borrower mainly repays interest.
In case of resale of the property
Penalties for early repayment amount to 3% of the share of capital repaid (capped at 6 months of interest, it is theoretically possible to negotiate them (for example to offer degressivity), but the banks remain quite hostile on the subject.
Do you want to sell your home in order to buy another, bigger one for example, but the amount of the penalties discourages you? Be aware that some banks allow the transferability of the loan: this allows you to keep the loan already in progress, and to borrow only the missing complement. This option is very advantageous for the borrower because it saves him the costs of early repayment but not all establishments offer it: it is therefore advisable for new borrowers to find out about this possibility before committing to a bank.
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