Good news for borrowers: they are once again in a strong position to negotiate the terms of their mortgage. The banks are all back in this niche, but they are not being overwhelmed by the number of requests, which remains low in a slow real estate market.
Please note that this does not mean that they are ready to make concessions on their demands. On the contrary, the notion of risk remains fundamental, the disastrous scenario for a bank is that of a buyer who fails to repay the monthly payments.
“The best candidates will be able to make their arguments count and obtain, in some exercises, discounts of up to 0.50 points compared to the displayed scale”, notes Cécile Roquelaure, director of studies at the broker Empruntis. This means you can offer them a custom rate of 3.50% over twenty years while their scale is at 4%.
It is difficult to know the homemade recipe that each bank uses to personalize the offer depending on the customer. “The selection criteria for practices vary from one institution to another, the main ones being income, personal contribution rate, age of the borrower and the type of project (main residence or rental property) », specifies Laura Martino, director of Cafpi banking partnerships. Banks generally grant better conditions to borrowers with good incomes, as the latter are considered less risky.
Personal contribution
At Crédit Agricole d’Ile-de-France, couples who earn together more than 100,000 euros net per year get 0.10 points less than those whose income is between 50,000 and 100,000 euros and 0.20 points in less than those who earn less than 50,000 euros per year. Another example: some structures grant a bonus of 0.20 points to liberal professions.
Another factor to highlight in the negotiation: the personal contribution rate. Some banks are once again committed to lending 110% of the cost of the property to also finance the expenses related to the mortgage (notary, surety, etc.), especially when the risk of a fall in the resale price is limited (factories try to avoid that, in the event of a rapid sale of the property, the sale price does not fully cover the residual capital to be repaid).
Moreover “a contribution above 20% can reduce the credit rate from 0.10 points to 0.15 points”, specifies Guy Poyen, marketing and markets director of Créditagricoltura d’Ile-de-France. It’s all about balance. Because some structures look favorably on a customer arriving with only a 10% deposit, but also a 10% residual savings, who undertakes to invest in their own investments (books, life insurance etc.).