With interest rates still very low over all durations, real estate professionals encourage borrowers to renegotiate their home loans .
However, most banks refuse to revise existing contracts, forcing their customers to compete in order to benefit from the current very favorable market conditions.
Conditions for a credit renegotiation
Interest rates on mortgages have fallen throughout the past year to historic lows. And the trend is not likely to be reversed anytime soon, with industry experts predicting stabilization over the next few months. The period is therefore still favorable for renegotiation . Except that not everyone can enjoy it.
Indeed, if the premium files do not encounter any particular difficulty to convince their bank, the “average” customers will have more trouble to obtain satisfaction.
Even if the lender accedes to their request, the conditions are not very advantageous. Indeed, renegotiating a loan generates certain costs, so the savings made can cover them. For this, a difference of at least 0.5% between the rate of the initial contract and the new offer.
Moreover, the loan should ideally be in its first third, when the monthly payments consist mainly of interest and still a large share of capital to repay.
Solutions to renegotiate your loan
Approaching your bank advisor is the preferred solution to negotiate a more attractive rate. In this case, it establishes a simple amendment to the contract. For the borrower, this is the fastest and easiest way since it avoids heavy formalities.
But if the latter refuses to return to the agreed terms, it may be interesting to change agencies. Because within the same network, the fee schedules may vary depending on the region and the policy specific to each branch. In this case too, the procedure is lightened, since the sign remains unchanged.
In the absence of a positive response from the bank, in the home agency or another, the borrower has every interest in playing the competition. Although the cost of repurchasing credit is greater than that of a simple renegotiation, and the process, longer and more complex, the savings are often substantial. In addition, this is an opportunity to change loan insurance and thus, further reduce the overall bill. Again, a pre-simulation is needed to evaluate the potential gains.