2023-06-19 07:55:13
L’access to mortgage has become a challenge in 2023 in the face of the continuous rise in interest rates and the restrictive regulatory environment. To optimize your chances of obtaining financing for your real estate project, put in place a winning strategy, the borrower insurance delegation being the first effective action.
What are the criteria for obtaining a mortgage?
In June, the average rate over 20 years exceeded 3.60% (excluding borrower insurance and cost of security) and within a few weeks, it should exceed 4%. According to brokers, we are moving towards mortgage rates of 5% for the end of 2023. This inflationary movement penalizes candidates for the purchase of real estate, 20% cut in borrowing capacity in one year.
The context is all the more complicated as the banks are subject to granting rules. For two years, the fairest profiles cannot no longer borrow beyond 25 yearslet alone beyond 35% debt ratio (loan insurance included). Despite a slight easing of grant conditions for investors, it is still more difficult to borrow in 2023, as banks are also much more cautious and less inclined to negotiate.
It should be remembered, however, that banking establishments have leeway to grant non-standard loans, largely for the financing of the main residence and first-time homeownership.
Beyond the usual solvency indicators, including the unsurpassable 35% effort rate, here are 3 tips to oil the wheels and get your mortgage more easily.
Boost your personal contribution
The APR (Global Effective Annual Rate) measures the overall cost of your mortgage, because it includes all costs related to obtaining financinginterest and all ancillary expenses required by the lender, namely:
Administrative fees Guarantee fees (mortgage or deposit) Borrower insurance premiums.
If they participate in the granting of the loan, the following expenses are added in the calculation of the APR: property appraisal fees, account opening and maintenance fees, shares in a mutual bank, brokerage.
To reduce the use of borrowing and therefore pull the APR down while minimizing the risks for the bank, inflate your personal contribution to the maximum.
Go well beyond 10% of the transaction amount. The bigger the contribution, the higher you push the confidence slider. You offer a guarantee of your seriousness to the bank, which sees in it the extent of your commitment. Here’s how to build your personal contribution. If you are concerned, boost the personal contribution with employee savings, a real springboard for home ownership.
Don’t put your eggs in one basket by stripping yourself of all your savings. The bank will be vigilant that you keep precautionary savings, a new criterion in 2023 for borrowing.
Delegate home loan insurance
Most borrowers struggle to negotiate the interest rate. In a period when mortgages are much less profitable for banks, managing to lower the nominal rate is a real feat, unless you are a premium customer (loyalty, well-stocked bank account, savings account, financial investments, etc.).
The first solution to reduce the cost of a mortgage is to take advantage of the borrower insurance delegationa right acquired since Lagarde law of September 2010. You have the opportunity to subscribe to a individual insurancecompeting with that offered by the bank, which will allow you tosave while being covered by guarantees that are at least equivalent.
By delegating borrower insurance, you can pay up to 70% less. To select the most competitive offer that meets the bank’s requirements, use a home loan insurance comparator. You will have access to best contracts on the market and you can benefit from underwriting facilities through a professional.
Use a broker
Last capital advice, do not hesitate to seek the services of a broker. This expert turns out essential to access credit in 2023. After having studied the feasibility of your project, having helped you to build a strong casehe negotiates the better borrowing conditions, which are not limited to interest rate performance. The broker knows the banks which are currently in a good dynamic, ready to finance the real estate projects of individuals.
Note that brokerage fees are included in the APR only if they condition the granting of credit, but most often they do not increase the APR.
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