Home loan buy-back: what you need to know

The repurchase of mortgage loan maintained the production of mortgage loan on the years 2016 and 2017, to the point of becoming a national sport among the owners who for the majority took advantage of the very low rates in order to renegotiate their conditions of repayment. Here is everything you need to know about this operation.


Redeem the mortgage

Redeem the mortgage

Often confused with renegotiating a loan which consists of going back to your lender to negotiate a lower rate, the repurchase of a home loan consists of having another house buy back your home loan in order to benefit from better conditions, the main one being rates. Redemption therefore involves a change of banking organization and almost systematically a change of direct debit. To this is added redemption fees, which cannot exceed 3% of the remaining amount to be reimbursed as well as the administrative and guarantee costs, in total, the operation must be worth the effort otherwise there is no need to redeem your mortgage.The professionals of the bank loan estimate that a difference of at least 0.75% between the current rate and the proposed rate is necessary to make the transaction attractive,ideally the 1% difference remains the indicator par excellence to ensure great savings.


Tailor-made mortgage loan operations

mortgage loan operations

If the borrowers can redeem their mortgage, some have more successful projects than a simple buyout, they are looking for example the possibility of financing a new project. Others are keen to integrate their consumer loans into the operation, just to take advantage of the rates for all loans and, if possible, make great savings. These specific needs cannot be satisfied by buying back a pure mortgage but rather by grouping credits, a similar operation but which may involve several loans of different kinds and the inclusion of an amount dedicated to a new project. On the other hand, the rates are often on higher levels than the repurchase of mortgage, that being said, there are all the same opportunities for the borrowers having consumer loans with high rates, like for example the loans revolving or certain personal loans.

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