Today, it is difficult to borrow over more than twenty-five years. At the start of 2020, 1.3% of mortgage loans is greater than or equal to this period according to the Housing Credit Observatory / CSA. If you opt for this type of long-term financing, shop around the banks and above all builds a good file (healthy financial situation, jobs in CDI in particular).
Think about special construction loans
When you sign a construction contract, you pay for the house as the work progresses. At the same time, you pay rent (especially if you are a first-time buyer). To avoid this pitfall, you will start repaying the capital when you move in. During construction, you will pay interest and insurance (interim interest). In Online calculator Mlcalc you can have the best calculator now for the loan.
Defer principal and interest
Some banks offer you a total deferred amortization. You start to repay your loan (principal and interest) only when the keys are handed over. Ask the bank if they can grant you a deferral and have financial simulations done to see if this solution is relevant.
Note:If you are building your primary residence for the first time, you can benefit from the PTZ. Granted on a means-tested basis, the amount of this free credit depends on the composition of your family and the address of the house. Other assistance: loans from Action-logement, savings for housing, or even loans under agreement (PC) or loans for social access (PAS).
Negotiate the additional costs of your loan
- To compare the proposals and choose your loan with full knowledge of the facts, base yourself on the annual percentage rate of charge (APR). It includes the gross rate plus ancillary costs. You are invoiced for two types of costs: administration costs (negotiable, they vary between € 500 and € 1,000 on average) and death and disability insurance.
- The loans include prepayment penalties. Tariff: 3% of the capital remaining due without exceeding one semester of interest. These penalties are negotiable. They can be reduced or even eliminated.
Negotiating additional costs is good. But know how to let go a little ballast so as not to rob the bank and keep an attractive rate.
Choose the right loan insurance
To take out a mortgage is to look at insurance, whether it is death-disability or job loss insurance. Posts to examine closely to build a good fundraising plan.
Death and disability insurance
While it is not legally binding, it is systematically imposed by banks. Its rate depends on your profile (age, health, etc.). Average price: 0.30% of the borrowed capital. But this amount depends on the risk you present.
Job loss insurance
It is not compulsory. It offers a certain security but it remains expensive (up to 0.80% of the borrowed capital. It is accompanied by waiting periods and deductibles which complicate its activation and limit its effectiveness. It is up to you to see if you judge such protection.
Note: in matters of death and disability, you can use insurance other than that offered by your lending bank on condition that it presents the same guarantees. This practice, otherwise called delegation of insurance, allows you to obtain better rates and / or better guarantees from specialized insurers. Note that from now on, you can change insurance every year on the anniversary date of signing the contract.