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How to negotiate a mortgage loan

The most difficult thing, when you want to take out a mortgage loan to pay for a real estate project (home purchase, construction, layout), is to succeed in benefiting from the most advantageous conditions. This is precisely the objective of this article: to teach you how to negotiate your loan to obtain the best conditions.

Contact different credit institutions

Contact different credit institutions

You will naturally apply for your loan from your usual bank, where you have your accounts and your consumer loans. But it is preferable to also get information from other banks and credit companies, or from an intermediary such as a loan officer or a brokerage. This will allow you to compete to find the best deal available. By comparing the loan products of different creditors, you will be able to see which offers the highest principal, the most attractive repayment duration or the lowest interest rates and monthly payments on the market. In this way, if your current bank does not make you the best offer, it could improve its proposal to make you sign a mortgage contract. Otherwise, you will be able to take out credit elsewhere.

Use the services of a broker

Use the services of a broker

It can happen that banking establishments are inflexible and uncompromising when processing a mortgage application. This can reduce the negotiation margin to zero. Your bank may even reject your loan file because of the risk of your real estate project, the inadequacy of your personal contribution or your inability to repay. Therefore, ask the help of a broker to help you with your steps. Unlike agents, these professionals collaborate with several financial institutions and know the particularities of each of them. Thus, they will be able to compare the different loan offers from their partners to offer you the one best suited to your borrower profile, your borrowing capacity and your needs.

Consider buying back credit

Consider buying back credit

You can use the services of a mortgage broker even if you have already taken out a loan. This in order to redeem your current credit. Credit repurchase consists of having your credit redeemed by another bank or by another credit organization for a new credit that is easier to repay. This can be profitable if your current borrowing rate is high and makes your monthly payments difficult to pay. A broker can direct you to another, cheaper loan. But before taking out another loan, calculate the remaining repayment costs and compare them with the costs of taking out a new loan (including monthly payments and redemption fees) to see if this option is worth it.