When interest rates are going down, this is an opportunity to start renegotiating your mortgage. Complicated to see clearly? Banks do not necessarily seek to help you achieve this advantageous transaction for you. Our tips are there to prepare you to manage the renegotiation of your credit for the better!
1. Make sure you are in a strong position
In some cases, the renegotiation of the mortgage is not interesting. Check that you meet the following criteria:
the rate of your credit is 0.7 to 1 point higher than the current rate;
the amount due is more than 70,000 €;
you are at a third of the refund;
you do not intend to sell your property soon, because the redemption of mortgage includes prepayment costs, which must be amortized over a long period.
If these conditions are met, you are in the situation where it is interesting to make an appointment with your banker to renegotiate your mortgage!
2. Feel free to juggle between banker and broker
The first point of contact for a renegotiation is your banker. That said, it may be damming and does not accept your project. In this case, go see a mortgage broker. Of course, his fees will be higher. But if the bank is blocked, it is a reliable solution. Advantage: you benefit from his expertise and his sharp skills in negotiation.
3. Negotiate the fees
On the bank side, the processing fees of a mortgage can go up to € 1,500, but some properties go down below € 500. Compare, negotiate, make yourself heard! A broker will have higher fees, but he offers a more comprehensive service and relieves you of the burden of negotiating the terms of the redemption yourself.
4. Play the competition
You have several levers at your disposal to redraw your home loan and minimize your expenses. Death and disability insurance, subscribed for any credit, is one of them! Indeed, you have the opportunity to move to another financial institution for this insurance, so compare rates. This is one more way to negotiate and lower your fees.