If the selection of a home is often motivated by a crush, its purchase is a well thought out act. All the more thoughtful, when this acquisition requires the assistance of a bank and a mortgage. Therefore, the borrower asks many questions that he needs answers to achieve his purchase …
Which bank will offer me the best rate?
The rate of a mortgage is built on several variables: the price of money on the financial markets, with which the bank buys the property, loan manufacturing costs, the margin of the bank and the risk that represents the borrower.
A formula that varies regularly within the institutions, according to their policy (needs, objectives, financing conditions on the markets …), but also, from one region to another, within the same entity.
- And how to choose between fixed rate and variable rate?
In 2017, fixed rates continue to be exceptionally low, which explains the preference of borrowers for fixed rate loans .
To know the rates practiced in a region you can question our network of experts located locally. Each credit expert will be able to communicate to you thanks to their mini site updated very regularly the rates practiced in their district.
How many years do I want to borrow?
The ideal duration of a loan does not exist, but we can identify some criteria to enlighten you to choose it:
- It depends on your situation. Becoming a homeowner must not change your lifestyle (remove your ski holidays or limit outings, etc.): hence the importance of “rest to live”.
- the extension of the loan leads to higher interest rates, but also a lower monthly payment. It must then be determined whether this fall is sufficient to absorb the rise in the rate.
Attention: This operation will also increase your total cost of credit in proportions to study closely.
What costs should we bear?
Beyond the amount to borrow, subject to the interest rate, we must add a number of ancillary costs, which add to the real cost of credit:
– Fixed or proportional processing fees, up to 1% of the loan amount;
-The guarantee (the mortgage, the lender’s privilege, the deposit);
-The compulsory insurance, even optional
– Notary fees, broker fees (except with immofinance.net) and real estate agency.
Attention: To be accepted, a file must be able to present a minimum personal contribution of 9%, thus covering the expenses of file, notary and those associated with the guarantees.
How do I know if my property file will be appreciated by banks?
To be “appreciated” by banks, a borrower must have a “reassuring” profile. A “good record” is based on the candidate’s professional situation, his personal contribution, and his savings effort that began several years ago.
But also the quality of the real estate will reassure the banker on the mortgage guarantee.
These non-exhaustive items represent the least possible risk of non-repayment of the loan.
In concrete terms, this translates into a comfortable personal contribution, solid savings and convincing financial stability.
Faced with such an investment, it is strongly recommended to be accompanied by a broker. An expert whose practice and know-how are both regulated and controlled. Not to mention that, at Harlequin.net, its intervention is 100% free, insofar as its remuneration is provided by the bank selected for credit.
Faced with such a versatile context, it is interesting to be accompanied by a broker to get the best rate: this expert has many arguments to save you money.