Review the rates of your mortgage, it is possible and it is even highly recommended. Here is our manual for a successful negotiation!
This is the time to enjoy
Although experts fear a rise in rates for the end of the year and then in 2017, the month of March turns these certainties upside down with an extremely low credit rate which even reaches a historic result. Supporting figures, mortgage rates are on average around 2.5% for loans over 25 years, 2.1% over 20 years and 1.8% over 15 years.
And the key, you will have understood, great opportunities to save money.
Before getting started, how do you know if this operation is worth it?
Take the pulse of the market
No negotiation without a thorough knowledge of the rates in force. To do this, you must contact at least three banks. Admittedly, this takes time and if you miss it, you can call on a real estate loan broker experienced in the exercise.
Clearly explain the situation to your banker
On the strength of your research, you are able to find out the situation with your financial organization. Keep in mind that a bank has no interest in losing a customer. So, by having all the cards in hand, your bank will surely try to offer you a competitive rate. In this case, we are talking about negotiation and not about buying back credit, which only concerns moving to competition.
Have a complete file to be operational as quickly as possible
This involves your last three pay slips, your last three account statements to attest to your good financial health. Finally, in some cases, you will also need to complete a new medical questionnaire.
Be ready to change the repayment terms
If you are flexible over the term of your loan, this is a good point for you. Because, as we have seen, the faster you repay, the lower the rates.
Systematic in the context of a mortgage, you can also make great savings by renegotiating it. When you meet with other banks, do not be fooled by particularly low rates because without a significant drop in your insurance, the operation may prove to be more disappointing than it seems. Get your calculators!
To terminate a contract, simply inform your bank by registered letter with acknowledgment of receipt. You will then obtain a show of hands from him which you will have to transmit to your former insurer.
And you, have you renegotiated the rate of your loan? Have you made any significant savings? Tell us about your experience, the blog is there for that!