Are you ready to buy a property? How to find the best rate among the many offers on the market?
Borrowing conditions have never been so favorable and this should continue in the coming months. What is the best credit rate that can be found? How to choose the right bank? Answers.
Historically low credit rates
Mortgage rates hit record highs in September 2019. It is now possible to borrow at 1% over 20 years and 1.25% over 25 years. The best files can even benefit from a rate of 0.80% over 20 years.
According to several brokers, rates will remain at a permanently low level. Bank scales should fall below the 1% mark over 25 years by the end of the year. Indeed, to stay competitive, banks must imperatively align with their competitors. The best profiles can hope to obtain a rate of 0.50% over 20 years in the coming weeks, specify professionals in the sector.
Why are rates staying on the floor? Current conditions are mainly related to the change in central bank policy. Since January, the Fed has stopped raising its rates and has even dropped by 0.25 point on July 31 last pushing the EB to return in turn on its position. If banks make real estate loans more accessible to their clients, they remain attentive to the quality of the files presented to them. The amount of personal contribution, professional stability and the potential for career development are studied in detail by banking institutions.
Tips for finding a mortgage at the best rate
Compare real estate loan offers
Each bank regularly changes its rate policy. To find the bank offering the best credit terms, you will need to compare offers on the market yourself or through a broker. Comparing the rates yourself may take a long time as it requires making an appointment in several banks to determine which one offers the best deal.
Go through a real estate broker
Using the services of a broker saves valuable time. Indeed, this professional is responsible for comparing offers and completing the formalities related to the subscription for you. It has an extensive network of partners that allows it to offer preferential rates to its customers.
Prepare your mortgage loan
If the banks provide massive loans, they remain attentive to the quality of the files. To put the odds on one side, bank overdrafts should be avoided and proper statements of account kept. The bank will also look at your potential credits being refunded. If these credits do not end within 6 months and if you have the opportunity, it is better to prepay them to increase your borrowing capacity. Finally, even if it is not essential, it is advisable to justify a personal contribution and to have a stable professional situation.