The first step is to go to your bank to know the conditions applied. Often, your bank will condition its acceptance of rate renegotiation to the subscription of banking products (home insurance, ELP, life insurance). Additional fees that must be taken into account in your calculation! Once this information is in your pocket, I advise you to consult a real estate broker such as JWBank who works with all banks in the market. You’ll be sure to get the best mortgage buyback proposal in one file package.
Credit Renegotiation, What Benefits?
The main purpose of loan redemption is to reduce the total cost of your home loan. For this you have two options: reduce your monthly payment by keeping the remaining time or keep your monthly payment by reducing the duration of your loan. Know that if you have a 0% loan, we do not have to buy it back. It stays in your current bank and in case of smoothing, we will set up a tier on the new mortgage to keep the same monthly payment over the entire duration of the credit. As an exception, you can extend the life of your mortgage. This option allows you to significantly reduce your monthly payment and gain purchasing power , however the gain on the cost of interest is lower.
What are the pitfalls to avoid when renegotiating?
Consult a mortgage broker at the beginning of the search. And choose only one ! Few people know but not all banks viewed online can be solicited by the broker, which limits our scope of negotiation. Then, do not stop at the mortgage rate and think about negotiating a parallel delegation of insurance that weighs on the overall cost of credit. Insurance can represent up to 15% of the total cost of credit which is not neutral! Finally, if you compare two competing offers, do not settle on the TEG (often calculated differently depending on the banks) but instead look at the overall cost of credit insurance included.
What are the costs of renegotiation?
When a home loan repurchase competition, all fees (penalties, fees and fees) are included in the amount of the new loan. All redemption fees are calculated on regulatory basis, only the fees can vary. Know that by choosing JWBank, you will not pay any brokerage fees * , nor any banking fees (totally free thanks to our agreements) . In addition, in the context of a loan buyback for a rental investment, the prepayment allowances and the new credit fees can be deducted from the property income as expenses.