The best real estate rate can generally access a good loan, but it is difficult to find the ideal rate given the players in the home loan market, here are some tips to find the best rate.
Real estate loan: the importance of the rate
The annual percentage rate of charge is what determines the bank’s remuneration and interest on the loan. That is to say that a borrower who will take out a mortgage will have to choose the amount and the desired duration and according to these data, the rate can be more or less interesting. Firstly, the bank may specialize in short-term credit, which means that for a long term, its rates may be higher than the market average and therefore not interesting.
Over a long period, the slightest point on a rate is of great importance because although there may be some differences between a rate of 1.50% and a rate of 1.40%, this is reflected in several thousand euros additional interest at the end of the repayment, so do everything possible to find the best rate.
The best real estate rate: how to check?
A rate is considered good when it is below the average recorded in the market for the production of home loans and in this area, there are several ways to check if the rate offered to you is good. The first alternative is to go to the website of the Housing Credit Observatory (link), this site offers each month the average rate offered with the credit guarantee housing and the average duration borrowed, we can see the evolution and especially visualize the average rate granted to borrowers, this is a good index to compare with his rate proposals.
The other solution is to turn to the leading brokers on the home loan market and ask for a simulation, they can also provide a comparison of banks in the market, this again allows to gauge the rates charged on the market.
Compare and choose the best rate
The simplest solution to get the best rate is still to perform a free simulation online. The interest is to submit a mortgage application that will be communicated to several institutions at the same time, they can make a financing proposal corresponding to the desired amount and the refund period filled. This allows to have several proposals with different rates and choose the best.
Just be careful not to be limited to a comparison on the rate, because the best real estate rate can hide a high rate of insurance borrower, it is ideal to compare the total cost of credit, with and without insurance. The comparators make every effort to encourage the credit institutions to provide offers for easier comparison, on the rate, on the insurance and on the fees charged.