Loan rates for taking out a mortgage are historically low. However, a few tenths of a point can save you a few hundred euros per year. And if we add to this all the additional costs of the mortgage, there are great savings to be made which amount to thousands of euros on the overall cost of the loan. We give you five tips to reduce the cost of your mortgage!
Tip number 1: avoid intermediaries
Be careful, we are not telling you to do without all the services of real estate intermediaries. But be aware that each intervention put end to end begins to weigh heavily on the amount of your loan, and is not necessarily necessary … With the exception of the notary, but keep in mind that you can completely negotiate their fees.
No real estate agency:
Be aware that there is no law governing the commissions of real estate agents, and the bill can turn out to be steep: an amount equivalent to 5 to 10% on average of the value of the property for a real estate agency, up to 15% for certain networks of independent agents. For a property costing 200,000 euros, going from private individual to private individual can save you a good sum, up to 30,000 euros!
The broker only in case of necessity:
Your loan file is simple, your professional situation is enviable, your contribution is substantial and your debt ratio does not exceed 33%? Forget the real estate broker who has a storefront, you can negotiate alone with the banks, or use an online broker at a more affordable price to benefit from an attractive loan offer!
Tip number 2: take advantage of subsidized and subsidized loans
If you are eligible for subsidized or subsidized loans, regulate by being, do not ignore this opportunity. These can be zero-rate loans based on your income for a first acquisition, for example, or zero-rate or privileged loans to finance energy renovation work. You will have several loans for the same property, but will only pay one installment.
And if you are an employee, check that your employer contributes to the 1% housing scheme. If this is the case, you could obtain, under certain conditions, a loan at very advantageous rates to acquire your principal residence. A lever effect to operate, which allows you to mechanically lower the total rate of your mortgage.
Tip number 3: seduce your banker
The human factor is decisive in any negotiation, and your banker is no exception to the rule. If your advisor has only limited power in terms of margin on the rates currently applied, he can plead in your favor with the head of the agency or the division responsible for loans. To keep you, the bank has preferential rate schedules that it applies to the best files or to people it deems the most trustworthy.
To put the odds on your side, have a contribution of at least 10% of the total purchase amount (real estate and works included), but 20% will be even more appreciated. If in addition to having a contribution, you are willing to repatriate available savings, some investments or some insurance in your new bank, we could well roll out the red carpet for you!
Tip number 4: compare borrower insurance
When you take out one or more mortgage loans, the financial institution requests a certain number of guarantees. Among these is one that will be systematically required: borrower insurance. It allows the bank to be paid if tomorrow you cannot meet the payment of your due dates. Indeed, it takes over in the event of death, disability, incapacity and sometimes even loss of employment depending on the contracts. It applies to the borrower as well as to the co-borrower.
You can halve this amount by insuring two co-borrowers, each at 50% instead of the 100% on each head generally offered. But whatever your choice, you are especially free to choose the cheapest insurer. There is therefore no need to take out borrower insurance from your bank if you find better than the competition. You can earn a few dozen euros per month, over twenty years, think about it!
Tip number 5: negotiate the administration fees
Application fees generally range from 100 to 1,000 euros. They depend primarily on the complexity of your file and the time spent by the banking establishment to complete the financial package. In practice, if you show a white footing and come with a complete, solid and easy to implement file, you can without too much difficulty request a commercial gesture on the file fees and save a few hundred euros. If you go through an online broker, they will pay these fees.
Bonus: simulate your mortgage online
Our online simulator offers you a formidable home loan comparison tool. Free, simple, fast and without obligation, it allows you to obtain the best existing mortgage offers.
Whether in terms of rates, administration fees, borrower insurance and ancillary costs, in just a few clicks you will receive clear banking proposals, really corresponding to your situation!
In addition, simulators are useful for quickly visualizing the duration, rate and amount of your loan maturities: they give you all the weapons to negotiate face to face with your financial institution.