One of the priorities when subscribing to a mortgage is that it costs us the cheapest possible.
Insurance, guarantee, interest, fees … What are the best tips for getting the best savings? Discover the ranking of the 3 main actions to lead for a good negotiation of a mortgage.
1st: The rate
It is not only the rate in a home loan, but it still remains a determining factor in the total cost of your credit. To negotiate at best, your broker will take care, by the many files they deal with banks, to obtain the best conditions in relation to your file.
For example, a loan of € 200,000 over 25 years at 1.70% will give a monthly payment of € 819 per month while the same loan, at a rate of 2.70% will give a monthly payment of € 918, or € 100 of more about a month, that is 30000 € of difference in total. A big difference!
The insurance is directly offered by the banks themselves. In some cases, especially if you are “young and healthy”, it will be more interesting to negotiate insurance with an outside insurance company. You will see divide the cost of insurance by 2 see 3.
Take the example of the € 200,000 loan for 2 young borrowers. The bank insurance rate will be around 0.25% for a bank while the insurance rate of an outside insurance company may be around 0.10%. For the first insurance, the total cost will be around 24 900 € while for the second, it will be around 9 900 €, a difference of 15 000 €!
(Please note that this simulation remains a simulation: the insurance rate varies according to the banks and the insurance companies, and according to your state of health.You also fill out a health questionnaire during your subscription)
3rd: Subsidiary loans
Your real estate project is not only financeable by a conventional bank loan. It can indeed be completed by other loans such as:
– Zero Rate Loan: For a new purchase / construction, or an old purchase with 25% minimum work. Under conditions of income.
– The employer loan: If you are an employee of a company with more than 10 employees contributing to the fund.
– The Staff Loan : If you are civil servants
– Prêt Pro BTP: If you are artisans
– First-time buyer loan: In some banks, for your first purchase.
All these loans are integrable with your financing and allow you to reduce the total cost of your credit thanks to rates lower than the market.
These 3 criteria are, by far, the most important to negotiate in your project. There are many other possible negotiation points (fees, IRA, modulation fees … etc) but they are anecdotal compared to the possible gains following a negotiation of these points.