The mortgage market remains dynamic despite the current economic context. Banks are active and inclined to allocate real estate loans. Still, you have to know how to go about getting the best deal.
1 – Tying up your loan file
Before any negotiation, you must carefully prepare your mortgage file, so that it inspires confidence in the bank.
First, put as much capital as possible. In most banks, the amount of the personal contribution is an essential element of negotiation to bring down the rate . Financing more than 20% of the amount of the acquisition with own funds is a factor much appreciated by the bankers.
Then to get the best rate on the market, you have to anticipate a minimum. Three months before filing an application, clean your bank accounts , which will be carefully peeled over this period. As much as possible, clear your consumer credit. Any episode of discovery is to proscribe, even if it is very short and a small amount compared to your savings.
Finally, know how to sell your strengths . You do not have big income or your financial income is irregular? Insist on your young age, your strong professional potential, the stability of your complementary income, the seniority with your employer or a reduction of your fixed costs in the years to come. Proven savings capacity will definitely be an asset. Each month, reserving a large sum of money for his savings can reassure the bank of your ability to cope with some financial pressure. He will prefer a low-income client with the ability to save rather than a high-income client but no savings effort.
2 – Go through a broker
Not all banks offer the same credit terms. First, because they do not have the same refinancing costs depending on whether they belong to specialized retailers or to a large national network of deposit banks. Secondly because each bank has its own pricing policy. It can also vary from one region to another and from one period of the year to the other depending on the commercial objectives it wishes to develop. Some banks seek to capture a target clientele and develop advantageous conditions for it. Such a bank will seek to capture civil servants, another the liberal professions or young executives to “potential” ….
Finally, the best offers are often limited in time, sometimes a few weeks, the time to refuel new customers and fulfill the objectives. So it’s almost impossible for an individual to go to the right bank at the right time. Except to go through a credit broker, the rate grids of the entire market. His role is to negotiate instead of his client and get the best financing solution.
3 – Negotiate the insurance delegation
Banks generally offer contracts they subscribe for the benefit of their customers (called “group” contracts). But Lagarde law now requires them to accept that borrowers have the opportunity to secure insurance from the company of their choice.
Loan insurance is an important parameter to negotiate. On the one hand because group contracts are expensive, often more expensive than individual contracts, including for customers over 45 years old. And, on the other hand, because the relative weight of insurance on the total cost of credit is all the more significant as interest rates are low. So that it is possible to obtain a good credit rate but to lose the benefit for having lost interest in insurance.
By negotiating a delegation of insurance, you can save up to 60% on the total cost of loan insurance , and benefit from a powerful insurance solution, even in specific cases of aggravated risks, such as playing a dangerous sport or a risky profession.