It's not easy to reduce the cost of your credit, especially if you've already taken out a loan. But all is not lost! There are still a number of trump cards you can play when you sign the offer and afterwards.
Demonstrate your ability to save
When it comes to negotiating your loan in the first place, you've got to show your credentials! The right impression will be made not only by your income, but also by your ability to save. If you have a healthy budget, this will enable you to negotiate better rates. The icing on the cake is, of course, your down payment.
Choose a good broker
In your opinion, the best loan broker is the one with the best rates. So compare! Using a broker can considerably reduce the total cost of your credit. He'll negotiate everything for you (and better than you), obtaining a waiver of application fees, a lower rate...
Think about delegating your insurance
Before agreeing to sign a loan offer, banks also require you to take out loan insurance. This protects you in the event of disability, incapacity, death or unemployment. Your banker will be sure to offer you an "in-house contract". Another option is to delegate your insurance. You can save up to 60% on the total cost of loan insurance! If the bank refuses, since January 2018, under the SAPIN 2 law, it has been possible to renegotiate, or even cancel your insurance, every year on the anniversary date of the loan. The ball is therefore in your court!
GOOD TO KNOW!
Banks prefer a person with a low income and a certain capacity to save, rather than one with a higher income but no savings effort.
Negotiate fees
To bring down the cost of credit, don't hesitate to negotiate application fees (or even no fees if you're a good customer). You should also try to get early repayment penalties waived, as these can quickly add up. The transferability of your loan should also be discussed. If you're buying a new principal residence, you may be able to keep the same interest rate and insurance conditions...
Compare proposed guarantees
Talk to your banker to compare the various guarantees on offer. Contrary to popular belief, a mortgage is not necessarily more expensive than a mutual guarantee. Mortgage, privilège de prêteur de deniers, caution, caution hypothécaire, caution mutuel: make your choice!
Stéphanie SWIKLINSKI