Preparing your real estate financing project allows you to better negotiate the financial terms of the mortgage. Before starting, follow the guide! ?
The loan rate
It is essential to compare the interest rates offered, by competing against several banking establishments. The credit offered can be at a fixed rate or at a variable rate.
In the first case, the rate is identical for the entire duration of your loan. It is the least risky solution. With a variable rate, the rate of your loan will go up and down, according to the evolution of market rates.
To reduce the risk, it is preferable to choose a variable rate “capped”, that is to say capped upward. Currently, this type of loan is very rarely offered.
The rate is expressed in overall effective rate (TEG). It includes, in addition to the interest rate, all the other compulsory costs: administrative costs, guarantee costs and death-disability insurance (if the latter two are offered by the bank).
The modular loan, a long-term management tool
The vast majority of home loans are flexible: after two years of repayment, you have the option of increasing or reducing your monthly payments (under the conditions provided for in the contract). This makes it possible to adapt the charge of the credit to the evolution of your income.
Consider using subsidized loans
In addition to the bank loan, subsidized loans make it possible to finance part of the purchase, with preferential rate conditions. Among the most frequent, there is the zero rate loan (PTZ), the social accession loan (PAS), the Action Housing loan (eg 1% housing).
They represent about 1% of the loan. Request the application of the minimum amount provided, or better, the removal of these costs. Also negotiate the reduction or elimination of the compensation that the banker is entitled to claim from you upon the early repayment of the loan (which cannot – by law – exceed 3% of the principal remaining due before repayment). With some exceptions, you will not be able to avoid this indemnity if you have your loan bought back by the competition.
Compare the cost of the disability death insurance offered by the insurer of the lending establishment with that of a borrower insurance taken out on an individual basis.
This second solution can be financially more attractive, especially for young and healthy borrowers. Since September 2010, your banker cannot refuse this contract, provided that he offers guarantees equivalent to those of his insurance contract.
Choose the loan guarantee: mortgage or guarantee?
Evaluate the cost of the guarantee required by the banker against a non-reimbursement: mortgage, privilege of lender of money (PPD) or guarantee granted by a specialized financial organization.
The mortgage and the PPD are more expensive than the deposit when setting up. And if you sell your property before the end of the loan, you will pay release costs. With the deposit, at the end of the loan part of the costs is returned to you. But the deposit is not always granted, you need a “good file”.