You have already made loans with your bank or financial organizations and you want to group all your credits at the most attractive rate. Ask your finance or broker to find you the lowest rates for a loan buy-back from their lenders.
The repurchase of credits makes it possible to regroup its various credits in a single loan, over a single duration and a single monthly payment. Thanks to the repurchase of credits the monthly payment decreases, but the duration of the credit increases. After combining the credits, the future debt ratio decreases and at the same time the remainder of living increases.
The interest rate for a loan repurchase
Thanks to the fall in interest rates, the nominal rate of loan repurchase is often much lower than the average rate of your credits that you hold when you redeem your loans.
In addition, if your current credits are made up of revolving credits, then they have very high rates and insurance costs. Your broker advises you to combine all your credits into one loan which will allow you to benefit from a loan buy-back offer at the lowest interest rate. The cost of insurance and invalidated death guarantees will be reviewed at this time.
The nominal rate (TN) is the interest rate of the credit, but beware that this does not include the fees. This is the difference with the global effective annual rate (APR) which includes all the costs: the bank fees, the brokerage fees, the insurance cost and in some cases the warranty fees (in depending on the type of credit). The overall effective annual rate determines the best loan offer at the best rate.
The nominal rate (TN) often attracts borrowers, but do not be fooled and compare your refinancing proposals or your loan offers, be sure to have all the costs that are properly attached to your new credit.
Namely: The nominal rate is the product of appeal for banks: they attract prospects with a very attractive offer in order to be able to market their other products. It's trading…
What is the rate of a consumer credit buyback?
The rate for the repurchase of consumer credit essentially varies according to the new term of the loan. The shorter the term of the new loan, the lower the interest rate. It should not be forgotten that the principle of buying back consumer loans is to extend the term to reduce the monthly payment and that the interest rate is not the determining factor in buying back your loans.
The lowest rate for a loan buyout can also be determined based on the quality of the record and the borrower profile that you are. In the case where you are a borrower who is a tenant, the redemption interest rate will be slightly increased between 0.15% and 0.70% more than the rate of loan consolidation for a borrower owner.
You may find this unfair, but banking statistics have proven that borrowers who are not homebuyers or homeowners have more arrears than other borrowers. These remain statistics and not a generality. Each bank has its own criteria and its own funding rates.
What is the rate of a credit consolidation with a mortgage guarantee?
Combining loans with a mortgage guarantee provides a better rate than combining loans without collateral. The duration, as well as the quality of the file, will determine the interest rate of the new loan repurchase.
The share of the mortgage taken over in relation to the total amount of loans repurchased indicates what type of loan offer will be published and what rate structure will be applied.
If the repossessed home loans are greater than or equal to 60% of the total amount of the loan then we will be on a grouping of home loans with a lower and more advantageous rate than on a grouping of consumer loans.
How to get the best rate in loan consolidation?
A good presentation of your file is essential to obtain an advantageous rate, but that is not all, the rate of the credit will also depend on the quality of your file.
Put the odds on your side to build your loan consolidation case to get the lowest rate. Trust your professional Finance OR broker who knows all the criteria of all his lenders and who will get you the best rate for consolidating your loans.
Your expert analyst in loan consolidation accompanies you first of all to constitute all the documents to have a complete file. Above all, don't forget to report all the credits and account statements you have. He advises you and tells you what type of loan is best suited to your situation.
The advice of your analyst is precious, he offers you a duration in line with your debt ratio, the amount of cash that must at least be expected (you never know what can happen next, so plan the equivalent of 1 to 2 months of salary in cash allows you to anticipate small unforeseen events), and before sending your file to its lender your analyst tells you precisely the interest rate of your credit grouping.