Often when we start to document for the first time on the terms of obtaining a mortgage, we quickly realize that a variable rate is significantly lower than a fixed rate which would tend to push us towards this solution , but which, as its name suggests, can also reserve the news of an increase that we will not welcome.
Yes, but the fixed rate is always higher and generally quite marked. So what to do? Is it not possible to benefit from a credit at a fixed rate and low at the same time? This is what we will see in a little more detail in the following lines.
- Fixed and low rates, what you should not dream about
- Fixed and low rate credit: tips for getting one
What you should not delude yourself about your fixed rate credit?
That one seeks to obtain a credit at the best rate, it is quite legitimate and that justifies many steps or the recourse to a broker in real estate credit why not. That being said, one should not dream either and there are things on which the miracle cannot take place. For example, you can never get a fixed rate lower than a variable rate from a given bank.
You will also not be able to get a fixed rate in one bank lower than a variable rate in another. Or if you could, but if so, it is so unlikely that there will most likely be a wolf. Even when certain banks practice an aggressive policy on the rates of their mortgages to be able to recover new customers, they cannot in most of the cases align their fixed rates (on the same amount, of course) with the variable rates of competitors who are less in need of customers at that time.
Even by calling on a very good mortgage broker, who will have to pay for it goes without saying, the operation seems unlikely. However, there are a few little tips that we want to tackle on loan credit and which we will reveal below.
Tips for getting a low and fixed rate loan
The first tip is to wait for the right time. Indeed, as you may know, the real estate market and the credits that accompany it is a market that is fluctuating and to succeed in obtaining a correct rate, whether it is a loan to fixed rate or variable rate credit. Obviously, it is easier to say when we decide to make a mortgage for rental investment than to buy the property that will be your main residence, but it happens that even in this specific case you are not necessarily in a hurry, like a first-time buyer who lives with his parents while waiting for the right moment, for example.
The first tip will therefore be to wait for the moment when the rates are at their lowest and when all the banks offer attractive rates.
Then, it is necessary to take again the concept which we evoked above. The different banks practice different rates according to their customer needs and the mortgage is one of the main levers to encourage customers of a bank to leave it to steal it from their competitors.
This strategy of capturing customers is one of the elements that are found in the rates charged, whether fixed rate loans or variable rate loans. The idea is therefore to find which bank has the most need to get new customers based on the rates charged on mortgage loans. For this, a quick tour of the websites of the various banks will give you an overview.
If your current bank practices advantageous rates, it is because it seeks to recruit new customers and therefore also in parallel not to lose them. This puts you in a strong position to negotiate with them because they will not let you go.
Going to see your banker to ask him for a loan at a fixed and low rate by having previously recovered simulations carried out with two other banks which are also in great need of new customers will have a good chance of achieving a satisfactory result.
If your current bank does not have attractive interest rates, they will not necessarily be willing to work hard to keep you. Ask them for a simulation anyway, out of curiosity, it doesn’t ask you anything and you could sometimes have a good surprise.
If not, make a simulation with one or two banks which practice attractive rates and go to see another which also proposes attractive rates of loan by saying that you had an interesting proposal, but that you are well with your bank, where you have your habits and it would take a little more to push you to change them.
By doing this, you could get a little extra gesture, applicable on both types of loan, variable or fixed and which could therefore allow you to sign a loan at fixed and low rates.