To succeed in your real estate project requires knowing the different stages which go from the sales agreement to the signing of the deed. Our advice on the 15 most important points to help you succeed in negotiating your mortgage.
No need to use computer software to establish a forecast budget. It is essentially a question of estimating, on the one hand, the expenses related to your future accommodation and on the other hand to prepare your financing.
Some expenses will appear for the first time as the property tax, others, already existing will have to be reassessed such as the housing tax, housing insurance or heating and transport costs. Plan for a margin of error and assess your financial envelope based on these elements.
Make the competition play
Put several banks in competition from the start. Do not make the mistake of contacting a single organization by telling yourself that it will be possible later to contact other establishments. You are running out of time and it is best to have all the financing proposals in hand as soon as possible so that you can compare.
You can contact a mortgage broker to obtain the best mortgage and benefit from the advice of a professional. You will save significant time by comparing a large number of loan offers in a minimum of time.
Establish several financing plans
In the same spirit, ask your interlocutors to establish several financing plans. It is important that you make several projections in order to check which is the best formula for you. (Fixed or variable rate, choice of duration, smoothing with short loans, etc.).
Competing for the group insurance contract with an external delegation
Nothing requires you to take out your loan insurance from the bank. Since the Lagarde Reform, it is entirely possible to take out insurance with the insurer of your choice. The only condition: present guarantees at least equivalent to those offered by the lender.
Note: A delegation of insurance does not necessarily offer a lower rate than the group contract. The price depends on the age and state of health of the insured. After 40 years, the contract offered by your bank may be cheaper.
Save on booking fees
It is not the most important position but it is not a reason to neglect the administrative costs. In the order of 1% of the amount of the main loan, generally capped at € 500 for loans not exceeding € 100,000 and € 800 for a higher loan.
Avoid the mortgage
The lender requires collateral in the event of borrower default. Again, you can save money. Most banks offer to go through a mutual guarantee company, less restrictive and more often less expensive than real security (mortgage registration or IPPD).
If the mutual guarantee is refused, ask the bank to opt for a lender lien rather than the more expensive mortgage.
Negotiate prepayment penalties
Let’s be clear, banks don’t like to negotiate prepayment penalties (3% on principal repaid). For the simple reason that buying a home loan costs them money. Nevertheless, the discussion must be conducted from the first interviews.
Our advice: if the bank is reluctant to abolish the early repayment indemnities, propose a decreasing reduction. For example 1.5% after 5 years and free after 10 years.
Avoid interim interest
If you have a project of the main residence in the new one (construction of individual house or purchase of an apartment in VEFA), you should know that the successive releases (as and when fundraising) will give rise to the payment of interest dividers.
Only one solution to escape it. Ask the bank to amortize the amounts disbursed progressively (payment of principal and interest). Still, it is necessary that the incomes are sufficient to face these deadlines in addition to a possible rent and this, until the delivery of the accommodation.
Predict the disaster scenario: the resale guarantee
There are enough hasty resale situations to warrant caution. If in the event of force majeure, you had to resell the property, the resale guarantee will make it possible to compensate for the possible financial loss linked to the resale of the accommodation up to a certain limit defined by a contract.
Choose between a fixed rate and a variable rate
Take the time to compare the offers before deciding. A fixed-rate will bring you security until the end while the variable rate will allow you to benefit from a lower rate, at least initially.
Note: there are also mixed financing formulas that allow you to benefit from a fixed rate for a certain period and then switch to a revisable rate afterward. Our advice: if you opt for a revisable loan, prefer a capped rate which allows you to set a ceiling in the event of an increase