Buy out your mortgage to get better terms, who would say no? Your bank may be… Going from a rate of 4.5% to less than 3% is all the more difficult because it has itself benefited from a favorable rate to lend you money. It will have to reduce its margin and it is not willing to consent to it easily. To succeed in this negotiation, it may be better to call on a broker!
Are you in an ideal position to redeem your mortgage?
The purchase of a mortgage will be interesting if you have exceeded the first third of the refund. The biggest interest is paid at the beginning of the loan. In the same way, if the remaining capital is less than 70,000 euros, the gain will be minimal or zero. You risk paying interest already amortized. Whether you are a fine negotiator or not, you have a lot of advantages to using a broker.
Because it benefits from a network of partners
A broker works with several banks. It thus avoids you a long work of simulations with many credit organizations. Remunerated by them, he has an advisory mission. It will help you to compare offers and especially their costs. The rate indeed does not make much sense with regard to the additional costs: insurance rate, administration fees, guarantee fees… For example, a nominal rate of 3% with an insurance rate of 0.3% and fees offered will be more advantageous than a nominal rate of 2.7% with an insurance rate of 0.5% and handling fees of € 1,000. Also note that a mortgage is less expensive over 10 years than over 20 years.
Because he gets a preferential rate
The rates of a mortgage are variable from one bank to another. They are also a function of the amount and the duration. As major customers of banks, brokers account for about 30% of their turnover, so they will get a better rate than an individual. And all the more so because they put them in competition with each other.
Because he negotiates the expenses of file
As a business provider, the flexibility of a real estate broker is greater, especially if it is a large brokerage firm. Not only will the file fees be more easily negotiable, but sometimes they can even be offered depending on the bank and your file. Depending on your file, the broker will also know who to contact for the best conditions. And you will benefit from free support until the signing of the mortgage repurchase in the case of online brokerage mainly.