Although the current economic context is not very favorable, the mortgage market is still quite dynamic. Here’s how to get an attractive rate:
1 – Prepare your credit file well
Before getting started, you need to prepare your mortgage loan file very carefully in order to build confidence in the bank. Build up a more or less substantial personal contribution because it is an essential element in negotiating your rate: the higher your contribution, the lower the rate. Financing with equity more than 20% of the amount of the acquisition is a point highly appreciated by banks.
Anticipate the steps…
Then, you must anticipate your approach at least three months before by cleaning your bank accounts and paying off your current consumer credits.
Finally, prepare to highlight all your strong points to reassure your banker: young age, stable professional situation, additional income, the existence of a savings account…
2 – Use a broker
Since banking establishments do not offer the same borrowing conditions and the offers are often limited in time, it appears difficult for an individual to contact the right bank at the right time. Thus, by going through a broker specializing in real estate credit, you will very quickly access the best offers on the market that he can negotiate for you.
3 – Negotiate loan insurance
Banks systematically offer their own loan insurance contract: the group contract. However, Lagarde law obliges them to accept loan insurance taken out with the insurance company of the borrower’s choice. Loan insurance is a significant element to negotiate because group contracts are generally more expensive than individual contracts.
Benefit from a better guarantee
By negotiating individual loan insurance (delegation of insurance), you can reduce the cost of your insurance by half compared to the group contract offered by the bank and benefit from more effective coverage whatever your situation:
- aggravated health risks,
- dangerous trades,
- risky sports…
In summary, by going through a broker, you will save time and save money. You will get the financing solution that is most advantageous to you both in terms of price and conditions.