The purchase of real estate usually involves the use of credit. Borrowing rates are still very attractive in 2018. But you still have to be able to get them. Here are some tips for your negotiation.
You plan to buy a property and must therefore subscribe to a mortgage. Rates, which were historically low at the end of 2016, had stabilized in 2017, leading to an explosion in the number of transactions. While a very small rise occurred in December 2017, rates returned to a stable state, close to the records of the last quarter of 2016.
In January 2018, the rates were on average 1.49%, all durations combined (against 1.52% in December 2017), according to the Housing Credit Observatory / CSA. But you still have to negotiate with your banker. Here is a list of tips and advice that will help you get the best rate.
Mortgage rate: play the competition
Obviously, the real estate rate is the essential component of the cost of real estate credit. For starters, and even if it may seem obvious: play the competition! Not all banks offer the same rates and conditions. Financial institutions compete with each other and sometimes offer attractive rates to attract new customers . Start by asking for an appointment at your usual banking establishment. Your advisor knows you and he will make you a first proposal. Then do not hesitate to go to the competitors. You should know that the law on the protection of borrowers prevents you from accepting an offer of credit before a period of 10 days.A bank that makes you a loan proposal can not require a response from you before the end of this period of reflection . Also, use it to tour banks and credit agencies.
You will also have to choose between a fixed rate and a revisable rate . The latter is sometimes attractive because it is often lower during the first years. But you are not immune to a future rise. Therefore, do not hesitate to ask your banker several simulations based on several scenarios of rising or falling rates. Your contact may also offer a capped rate. Know that this is a variable rate but up to a point. Your rate can not exceed a ceiling set in advance.
Mortgage loan simulation
Do not forget the online banks, which are redoubling their efforts to improve their business on the web and whose offers can be advantageous. In fact, it is often possible to run loan simulations on the online banking website . Boursorama, Fortunéo, ING Direct … Many of them offer you online tools allowing you to get a first idea of the price of your credit, even before having to contact their services. You can also run a simulation via the tools put in place by online brokers .
Negotiate with a real estate broker
If you do not have the time to play the competition yourself, the use of a broker(Artemis, CAFPI, Meilleurtaux …) may prove to be the solution. This financing professional acts as an intermediary and makes the banks compete on behalf of the borrower. Its market expertise and skills may help you get a better rate.
The use of a broker generates brokerage fees of approximately 1% of the amount of the loan. In most cases (and especially for online brokers), it is the bank that commissions the broker. When this is not the case and you have to pay the broker, it usually negotiates a deletion of fees from the credit agency.
Offer counterparties to your banker
A bank remains a commercial establishment and must check the profitability of its future customers. Also, you have to give your banker some rewards and show him that you want to establish a long-term relationship with his banner.. Start by domiciliating your income in the underwriting establishment. Then show an interest in the other marketed products. Without committing yourself, you can request quotes for auto insurance, home insurance, etc. To mark the occasion, you can also transfer your savings within the bank. Overall, keep in mind that the banker looks for you as a profitable client and that you must agree a few counterparties to obtain the best conditions for your credit. But there is no legal obligation. Your banker can not force you to do it.
Real estate loan and borrowing capacity
Before granting you a home loan, a banker will review your file to assess the risk he or she incurs in lending you money. Your financial situation must therefore be more stable. The banker will certainly peel your statements over several months. The last three statements of account are most often requested in loan application files . It is therefore better to submit sample statements: avoid overdrafts, unreasonable expenses and payment incidents . In the same way try to repay your potential consumer credit . Show, all in all, that you can manage your accounts without worry.