If the selection of a home is often motivated by a crush, its purchase is a thoughtful act. All the more thoughtful, when this acquisition requires the assistance of a bank and a mortgage. Therefore, the borrower asks many questions to which he needs answers to finalize 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 banking establishment buys the good, the costs of making the loan, the margin of the bank and the risk that represents the borrower.
The formula that varies regularly within establishments, depending on their policy (needs, objectives, financing conditions on the markets, etc.), 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 borrowers’ preference for loans at fixed rates.
To find out the rates charged in a region, you can ask our network of experts located locally. Each credit expert will be able to communicate with you through their mini site, which regularly updates the rates charged in their constituency.
Over how many years do I want to borrow?
The ideal duration of a loan does not exist, but we can identify certain criteria allowing you to enlighten you to choose it correctly:
- It depends on your situation. Becoming an owner should not change your lifestyle (cancel your ski vacation or limit outings, etc.): hence the importance of “living to live”.
- the extension of the loan results in higher interest rates, but also a lower monthly payment. It must then be determined whether this drop is sufficient to absorb the increase in the rate.
Caution: This operation will also increase your total cost of credit in proportions to be studied closely.
What costs should we bear?
Beyond the amount to borrow, subject to the interest rate, we must add a number of additional costs, which increase the real cost of credit:
-The application fees, fixed or proportional, up to 1% of the loan amount;
-Guarantee (mortgage, lien lender’s privilege, surety);
-Mandatory, even optional insurance
-The fees of notary, broker (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 costs of the file, the notary and those associated with the guarantees.
How do I know if my real estate file will be appreciated by banks?
To be “appreciated” by banks, a borrower must have a “reassuring” profile. A “good file” is based on the professional situation of the credit candidate, on his personal contribution, on his savings effort started several years ago.
But also the quality of the property will reassure the banker about the mortgage guarantee.
These non-exhaustive elements represent the least possible risk of non-repayment of the loan.
Concretely, this translates into a comfortable personal contribution, solid savings, as well as convincing financial stability.