Mortgage loan: how to borrow on the best terms?
Do you want to take out a mortgage loan? Do you know that there are real estate loans offering better rates than others? Here are some tips to get better terms according to your profile when applying for a loan.
At the beginning of the year 2018, mortgage rates are very attractive. You can get “on average 1.03% over 10 years; 1.32% over 15 years; 1.49% and 1.80% over 20 and 25 years. This is explained by the rise in real estate prices. Indeed, the population is much less likely to buy, which causes a decline in loan applications. As a result, banks are making great efforts to win new customers and achieve their annual goals.
Who to turn to?
In terms of borrowing, we naturally tend to turn to our bank. Yet there are other institutions that can offer better conditions. Indeed, wanting to attract more customers, these companies can offer better rates, especially regarding mortgages.
The personal contribution
It is true that self-financing will be better received but it is not always a determining factor. Many banks still give loans to people who have no cash. It all depends on the commercial policy of the financial institution, which may even decide to amortize 110% financing.
The parameters taken into account
Banks take into account many factors before granting a mortgage. First, there is the applicant’s debt capacity. Indeed, it should not exceed 33% (some exceptions may concern high salaries). Then, financial institutions look at whether you already have different “small credits”, which is not looked favorably. Your income is also analyzed as well as your employment contract, the seniority of the company, your type of job and career development potential. Finally, the general state of your bank accounts will be scrutinized. The bank will look at how you manage your money and if you are often negative.