Real estate credit: 4 ways to take advantage of the economic situation.
Mortgage rates remain very low, creating a particularly favorable climate for candidates to buy. The period is ideal for obtaining advantageous conditions from lending establishments, all the more by calling on a mortgage broker! Here are 4 avenues to explore for borrowers.
1. Get a low rate
On average, the mortgage rate stood at 1.43% in the third quarter of 2018 according to the Housing Credit Observatory / CSA. A particularly attractive figure that responds to a pragmatic reason: the lending institutions did not reach their objectives for the year, and the banks are therefore trying to attract new customers. It is an interesting opportunity if you want to borrow! Compare the rates and negotiate the advertised ones, for example with the help of a mortgage broker.
2. Request flexibility from the lender
You are in a strong position, especially if your mortgage application is solid! Then you can, at the time of negotiation, discuss the borrowing conditions. For example, your contract may include an increase in monthly payments consistent with the increase in your income. This early repayment can be very advantageous.
On the contrary, you can decrease your monthly payments if you already know that your income will fall at a time T (for example, the arrival of retirement). In the case of an increase or decrease in monthly payments, negotiate this when taking out your mortgage.
3. Reduce your intake
It is always more relevant to invest available money rather than spending it. So think about negotiating a reduction in your intake. In practice, banks ask for 10 to 20% of the amount borrowed. By bringing competition into play, this is a parameter that you can adjust. To do this, you will need a very well-organized file and an exemplary management of your finances, particularly with regard to your debt ratio, your investments and your income.
4. Extend your loan period
The fall in mortgage rates has the effect of favoring the lengthening of the repayment period. Be careful, however: even if this has the advantage of having lower monthly payments, the term cost is however more expensive. This solution requires reflection.