2021 is undoubtedly a good year to get a loan offer at a very attractive interest rate. But be careful, because the health situation makes access to a loan more difficult than before, and only the best files will be able to obtain a mortgage.
Learn how to get the best mortgage deal in 2021 by meeting all the requirements of the “ideal” borrower. Follow our advice, keeping in mind that there is no better bank than another, but there is a better one for your specific case.
What is a good loan offer in 2021?
Given the particular context facing the French, Europe and the world, a good mortgage offer is above all an acceptance of your financing file. As the noose tightens for many buyers, you are going to be able to borrow and become a homeowner, which is already satisfying.
In addition, you can consider that a good mortgage offer is:
- An offer with a low interest rate, not exceeding 1 to 2% in 2021
- An offer with a monthly payment that you can honor without exceeding 33% of the debt ratio, or even 35% for the acquisition of a main residence
- An offer with the least possible banking fees
- An offer with inexpensive guarantees, namely an attractive bank guarantee on the one hand, and borrower insurance at the best value for money on the other hand
- An offer with the lowest APR (Annual Global Effective Rate) among all the offers offered
And to find the best loan offer, you will have no choice but to compare the offers of banking establishments thanks to the APR, which is an “all in one” rate in which the lowest wins!
How to compare the different mortgage loans of 2021?
The interest rate
When we talk about interest rates for mortgage loans, we are referring to the rate granted by the bank, excluding insurance and additional costs. As seen above, a rate between 1 and 2% is already very low in itself, and satisfactory in 2021.
The longer the term of the loan, the more the rate increases, which is a normal consequence and also allows you to acquire a more expensive property and / or to live more comfortably.
Given the low rate generally observed for 2021 mortgage loans, it is important to stay on a fixed rate, avoiding any rise in interest rates during credit, which is more careful when borrowing on 15, 20 or even 25 years.
The monthly payment provided for in the contract
As seen previously, the duration of the bank loan directly influences the interest rate. Rather than looking for the “right duration”, look first and foremost for the “right monthly payment”.
The right monthly payment is one that your household can honor without sacrificing its priorities and desires. In general, it should not exceed one third of the income you have.
But it may be that your priority is elsewhere, for example with a passion for travel, horseback riding, extreme sports or even vintage cars. Think about it to keep enough budget for your personal needs.
The loan amount
It’s very simple, but for the same term, the loan granting you the largest envelope of credit is of course more interesting. It is essential to properly estimate the real needs of the household in terms of the amount of the loan.
If this is relatively easy for a purchase in the new, it is necessary to linger more for a purchase in the old one which requires work. It is better to have your needs quantified to integrate them into the main mortgage, at the risk of having to add a consumer credit later on at less advantageous conditions.
The guarantee backed by the payment of the loan
Bank guarantee, conventional mortgage or PPD privilege of lender of money, all guarantees have neither the same cost nor the same effects. If your file allows it, prefer the bank guarantee.
The latter guarantee is generally the least expensive, even if its cost can vary as much as three times between establishments. In addition, it exempts you from release fees in the event of early resale of the property, for example.
Home loan insurance
Not having anything mandatory in the eyes of the law, do not think about avoiding it, because mortgage insurance or borrower insurance is required by lending institutions.
Take stock of the cost of borrower insurance, but also on the guarantees offered, such as the disability or incapacity rate covered, but also the exclusions provided for in the contract.
Note that loan insurance can be taken out “in delegation”, with the organization of your choice. By comparing the offers offered to the competition, the gain can amount to several thousand euros.
The APR or total cost of credit
The APR is expressed as a percentage and the total cost of the loan in euros. Either way, these two indicators give you an overall comparison of the most interesting offers. This will allow you to canvass only the establishments most suited to your request to definitely make the best choice before signing your loan offer.
How to get the best mortgage?
At the risk of repeating ourselves, comparing is the key to getting the best mortgage. To this end, two solutions are available to you:
- Use a broker specializing in real estate credit
- Use an online loan comparator
If you have a good file, well prepared in advance and you are a minimum convincing during an interview at the bank, we advise you to opt for the second solution.
Comparing mortgage offers online saves you time and money. This is a free simulation, with no obligation, no fees and no broker, to quickly find out the feasibility of your file.