The repurchase of credit is a financial product allowing private households to collect their existing loans (consumer credit, car loan, mortgage …) in a single loan, offering the possibility of paying a single monthly payment which is then greatly reduced, as well as an extended repayment term. The consumer may choose to redeem the credits in question from his own bank, or choose another financial institution with the help of a credit broker. But, like any borrowing of money, the repurchase of credit also generates different costs that must be calculated upstream.
If the plaintiff requests the redemption of his credits from his own bank, he will have to pay a handling fee; just as if he solicited the services of a broker.
However, it should be noted that the application fee must only be applied in the event of acceptance of the redemption request, and its amount is generally between 1% and 1.5% of the total amount redeemed.
The preliminary study of the applicant’s file can not under any circumstances induce costs without the financing of the new loan agreement.
In the context of the repurchase of a mortgage, the contract may provide for prepayment penalties for borrowed capital. In other cases, since you have * repaid all of your old loans in advance, you may be entitled to prepayment penalties (ARIs).
However, the amount of the IRA can not exceed 6 months of interest and 3% of the outstanding capital for the real estate regime, and 1% maximum for the consumer credit scheme.
In the particular case of mortgage repurchase , you must provide notary fees, which are generally included in the total amount of the repurchase.
Indeed, the notary is responsible for drafting the notarial deed necessary for the signature of the prior offer. The amount of the notary fees is in% of the total amount of the loan, and they decrease or increase according to the amount to be financed.
Some banks require the purchase of credit insurance, especially when the purchase of credit involves a mortgage on your property.
The amount of the insurance fee is between 0.12% and 0.40% of the amount bought back, but these are often optional, especially when it comes to a buy back of consumer credit.
In other words, the borrower insurance coverage is not mandatory, but the bank is not obliged to grant you the financing without insurance taken out with an insurance company.