Real estate credit without fees: is it possible?

Do you want to take out a loan to finance the purchase of your primary or secondary residence? The bank will probably charge you a fee.

If the mortgage rate is an important criterion to consider, other costs that will impact the total cost of credit should not be underestimated. In addition to borrower insurance, you will have to pay handling fees. What is the amount of the fees? Can we negotiate them? Explanations.

How much are the fees?

How much are the fees?

The application fees correspond to the remuneration of the bank for its work of analysis and processing of your credit application. Indeed, for each loan application, the institution must check all documents provided, ensure consistency between pay slips, statements of account and tax returns. These fees generally represent between 0.4 and 1% of the total amount of the loan, ie a sum ranging from 500 to 1,000 USD. Their billing depends on the lending bank. The application fees can be billed in a lump sum or as a percentage. They are most often paid at the same time as the first monthly loan.

It should be known that the application of the expenses of file is not systematic. The law prohibits them for Zero Rate Loan (PTZ) and Housing Savings Loan (PEL). They are also limited in the context of a social loan (SAP) or a social rental loan (PLS).

Negotiate fees, it’s possible!

Negotiate fees, it

The amount of the application fee is shown on the European Standard Information Sheet provided with the loan offer. This sum, often high, may make you want to start a negotiation to try to reduce or even cancel them.

The fees can easily be negotiated with the lender because they represent a small sum compared to other guarantees including credit insurance. Dealing directly with your bank, without going through a broker, can work in your favor. To put the odds on your side, be sure to heal the quality of your profile. If you have a personal contribution or if your debt ratio is low, do not hesitate to put this point forward.

Another tip to negotiate the fees: compare the offers of credit banks using an online comparator. If some organizations charge lower fees than your current bank, ask your advisor to make a similar proposal. If you are a former customer of the bank, you can finally ask for a gesture in the name of your loyalty.

When comparing the fees proposed by the banks, pay attention because some are indicated excluding taxes and others all taxes (TTC). If you are unable to reduce or cancel these fees, try to save on your borrower insurance.

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