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How to renegotiate a mortgage in 2022?
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How to renegotiate a mortgage in 2022?

23 December 2021

You want to renegotiate your mortgage for the coming year 2022 in order to benefit from more advantageous rates and better conditions? With the current level of real estate rates, a loan renegotiation at a better rate allows significant savings which translate into a reduction in the monthly payment or the duration of your credit. Follow the advice of Paradise International to properly renegotiate your mortgage in 2022.

1. Check the profitability of the operation

Renegotiating the loan entails fees and possible penalties. The operation is therefore not always advantageous from a financial point of view.

Credit renegotiation is generally considered to be attractive when the rate differential between the current loan and the renegotiated loan is within a range of 0.7 to 1% . The amount of outstanding capital must also be greater than € 70,000.

In any case, the most advantageous option, because it turns out to be the one that entails the least costs, is that of revising the conditions of the current loan . Going to another establishment for a credit buyback remains more expensive ... The various costs of setting up a new loan can reach up to 4.5% of the amount of the loan required!

2. Highlight your seriousness and your loyalty to renegotiate

Your banker is not required to accept the renegotiation of your mortgage. It is up to you to persuade them to make this commercial gesture. To do this :

  • Show that you respect the limit of 35% debt ratio : make sure that your debt ratio does not exceed this limit when you apply. Do not hesitate to pay off your small consumer loans to bring your debt ratio back to the admissible limit.
  • Justify irreproachable banking behavior : your monthly account statements must not show frequent overdrafts.
  • Remind your banker of your loyalty to his establishment: seniority, domiciliation of your current accounts, your investments and any insurance.
  • Do not hesitate to let people know that you have approached the competition.

3. The 3 key points of loan renegotiation

Motivate your renegotiation request by the importance of the difference between the conditions of your current loan and those now granted. Try to obtain:

  1. A sharp drop in your borrowing rate.
  2. A decrease in your insurance rate.
  3. An exemption from administrative fees.

4. Play the competition to renegotiate well!

The banking sector, and more particularly mortgage lending, is particularly competitive. A boon for the borrower who can compete between different institutions. No need, today, to push the door of 10 establishments for that. You can for example:

  • Call on a mortgage broker , who will help you benefit from his contacts.
  • Use an online comparator : very easy to use, it allows you, in a few clicks, to present your financing needs and to identify the most competitive solutions as on MeilleurTaux.com

The presentation, to your banker, of a loan repurchase proposal from a competing establishment, should encourage him to accept the renegotiation in order to retain a good client.

Give yourself every chance to get your mortgage renegotiated.

A reference for real estate in Collioure , Paradise Real Estate recommends that you carefully prepare your request.

Do not hesitate to call on a mortgage broker! He will help you compare the conditions offered by your bank for a renegotiation, and by competing institutions for a possible repurchase of credit .

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