When you own several real estate, you generally take out a mortgage by acquisition. However, when you end up with several mortgage loans, changing your bank to consolidate your loans is wise.
The repurchase of 2 or more mortgage loans, in 2020 and for the years to come, should no longer be seen as a solution reserved only for people in debt, but as a real means of saving money. Procedure…
What is the repurchase of 2 or more mortgage loans?
Loan repurchase looks like the renegotiation of home loans. But unlike the latter, it involves changing banking establishments and starting to compete.
This implies a more cumbersome procedure, although it can be more advantageous financially. In fact, the loans already taken out will have to be settled in your old banking establishment and a new loan, unique this time, will be taken out with the new banking establishment.
The buyback of several home loans is done by large groups, since it does not include consumer loans and is easier to manage. In other words, if your current loans are from Crédit Mutuel for example, you can go to Crédit Agricole, Caisse d’Épargne, La Banque Postale, Crédit Lyonnais, BNP Paribas, etc.
The different real estate loans that can be redeemed
We talk about repurchasing real estate loans as soon as you have one or more loans in one or more banks. In practice, the operation can relate to two or more real estate assets, or to a single real estate asset but with several credits.
Indeed, it is not uncommon for you to have several loans for the financing of the same home, such as a principal loan and a zero-interest loan or a home ownership loan for example. Or more simply, two credits of different duration which have been smoothed in order to obtain a more advantageous financial package.
The interest of the repurchase of several real estate loans
The main advantage of buying home loans is that it simplifies your financial management. Indeed, all your credits are grouped together within the same banking establishment. You therefore only have one installment to pay and one borrowing period.
But with the historically low bank interest rates that we know today, you only have one rate, most of the time particularly favorable to lower the total cost of your loans thanks to the repurchase of loans real estate.
It is therefore a real opportunity that can save you thousands of euros, even tens of thousands of euros. Two options are available to you:
- Pay the same amounts as before for your various loans in a single monthly payment: the loan period will then be shortened
- Lower the monthly payments to return to a debt ratio of 33% maximum: the duration of the loan will then be extended
If the repurchase of real estate loans originally made it possible to relieve the borrower with extended maturities, it is to this day much sought after to lower the cost of its real estate bank loans.
How to buy back home loans?
To redeem your mortgage loans with the most favorable conditions possible, you have three main options:
- Find out about the banks in your area yourself
- Call on a broker specializing in mortgage loans
- Perform an online simulation to receive targeted proposals
We advise you to choose the third option by using an online mortgage repurchase comparator, because this solution offers many advantages:
- Save time: by entering your data correctly, you immediately know whether your mortgage repurchase file is possible
- Saving money: by avoiding paying an intermediary like the broker, you save several thousand euros
- Easy preparation: by knowing which banks to turn to for your mortgage repurchase, it is easier to put together your file
Thanks to the online simulator, you will be able to meet one or more banks that have caught your attention. Concretely, here is how a loan buyback goes:
- Your new banking institution balances your loans with your old bank by repaying the outstanding capital, and in most cases the early repayment indemnities
- A new mortgage loan contract is signed with your future banker, with the formalism relating to the Scrivener law required for mortgage loans
- A new guarantee will be taken, this is usually a bank guarantee, but it can also be a mortgage or a lender’s lien.
- The borrower insurance will have to be revised, most often, you close the old one and take out a new one
Our advice: if all your mortgages are old and their remaining term is relatively short, it is not worth repurchasing your mortgages, but if they are recent or have at least five years remaining , a comparison is urgently needed, while bank interest rates are favorable.