It is difficult to embark on the purchase of your main residence or rental investment without resorting to borrowing. But even if it means going into debt over several years, you might as well do it under good conditions. Instructions for getting the best mortgage rate.
If mortgage rates are currently at a relatively low level, you still have to succeed in convincing the banker to finance your project under the best conditions. The presentation of your borrower profile and the various elements of your file are very important. Whether you are young, old, employed, liberal profession, find out what you need to know to obtain a low-rate mortgage.
The first thing to do to get the best mortgage rate is to prospect by interviewing several banks. Not all banks offer the same rates and conditions. This process can be long and tedious, it is strongly recommended to go through a broker . Some are free while others charge a fee to build the file instead of the bank. These professionals are only paid when the file is accepted. Through them, it is possible to take advantage of a better rate than directly.
If you wish to take out a mortgage, you will also have to choose between fixed rate and adjustable rate . The adjustable rate can be attractive because it is lower during the first years. However, the borrower is not immune to a future increase. Therefore, it may be wise to carry out several simulations with your bank. Your banker may offer you a capped rate that cannot exceed a previously set ceiling. In any case, be aware that you have a period of 10 days to accept a credit offer, which gives you time to compare the offers of establishments and thus play the competition.
Before granting a mortgage, the bank systematically checks the profitability of its potential customers. Thus, you will have to offer counterparties to the bank to show him that you want to establish a relationship of trust. From then on, you have the possibility of domiciliating your income in the establishment of subscription. Without committing yourself, you can also show interest in the other products it offers by asking for quotes for car insurance or home insurance. It is important to keep in mind that the banker seeks above all a profitable and loyal customer. However, the bank cannot force you to provide these counterparties in exchange for a low mortgage rate.
Before agreeing to finance your real estate project, the bank will study your file and assess the risk it incurs in lending you money. Your financial situation must therefore be particularly stable. The banker will observe your account statements over several months, any overdrafts, payment incidents and unreasonable expenses. It is also advisable to repay any consumer loans contracted . The objective for the borrower is to show that he knows how to manage his accounts perfectly.
Then, your contact will examine your ability to repay the monthly loan repayments. Lending organizations systematically apply the same rule:your debt ratio cannot exceed 33% . As a reminder, the debt ratio corresponds to the share of your income devoted to the repayment of the mortgage. However, this rate may vary from one bank to another depending on your file. If you are a tenant and the amount of your rent corresponds to that of your monthly payments, do not hesitate to prove to the bank the good payment of this one. If your rent is higher than the monthly payments, justify sufficient savings capacity .
Do you need a personal contribution to borrow? This is usually an essential part of negotiating your borrowing rate. However, many borrowers manage to obtain a loan without contribution. The personal contribution can represent a very good argument to lower your credit rate. Most banking organizations believe that this contribution should cover the costs of the file, guarantee and notary, representing at least 10% of the purchase price of the property. Thus, the higher your personal contribution, the more serious your project will be considered by the bank .
If your personal contribution is not high enough, know that it is always possible to reduce your loan thanks to personal savings, the participation bonus which you can request the early release from your employer, or even the family loan. . The PEL and the CEL are also considered as personal contributions by your banker.
Borrower insurance, although it is theoretically not compulsory, is in practice systematically required by the bank. It covers the credit organization in the event of death, disability or loss of employment of the borrower. The bank is not entitled to impose on you the subscription of its group insurance. You can choose to take out this coverage with another insurer, it is even recommended. Show the bank that you know your rights in this area and do not hesitate to compete. Home loan insurance is an important element to discuss when negotiating your credit rate.
Finally, do not forget that there is a series of subsidized loans that can make it possible to borrow a few tens of thousands of euros. This is particularly the case of the PTZ or the employer loan within the framework of the 1% housing. The most modest households can benefit from other aid systems such as the loan for social accession or the social loan for rental-accession. To see more clearly, the best solution is to use a free and non-binding online comparator . Thanks to this tool, you will be able to take advantage of the best offers on the market adapted to your borrowing profile.
