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Canada: Real estate loan: It is not only the borrowing rate that trades

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  Erin O’Toole says he can balance the budget without cuts. But what do the experts say? 'Every five to 10 years, something seems to happen. And it's just a question of how big it is, what the degree of the shock is,' Livio Di Matteo said of balancing federal budgets. Conservative Leader Erin O'Toole stood proudly at a podium on Wednesday and made a promise to Canadians: if elected, he'll balance the budget within 10 years -- and he says he'll do it without making cuts.

Avant d'adhérer à une offre de prêt immobilier, il est important d'analyser certaines clauses du contrat. Tour d'horizon. © AFP

before joining a real estate loan offer, it is important to analyze certain clauses of the contract. Overview.

Borrowers looking for a real estate credit tend to turn projectors on the only interest rates. But other points of attention are to be considered before the signature. And first, loan insurance. The cost of this warranty, which provides for the reimbursement of the credit if the borrower dies, becomes invalid or is dismissed, must now be integrated into the calculation of the debt ratio. "With the lower interest rates, this insurance weighs increasingly in the total cost of credit. It must not only negotiate the interest rate of borrower insurance, but also the clauses related to its level of Protection in the face of risks ", exhorts Philippe Taboret, DG Deputy Cafpi broker.

A Vannes, the very intrusive methods of real estate agents

 A Vannes, the very intrusive methods of real estate agents © Kévin Count A Vannes, the very intrusive methods of real estate agents tired of the repetitive intrusions of certain agents, the inhabitants even evoke the idea of ​​losing a complaint. "Some real estate agencies have no limits and no longer respect the private space". This observation is made by residents of a district of Vannes (Morbihan), reports West-France .

By the game of competition, the borrower is free to prefer individual insurance to the group contract proposed by the lender, subject to that it provide equivalent guarantees. "It's not always wise, for a customer who has closed his loan budget with a good rate at the key, to return to the arena with his banker to hope to save a few tens of euros", reports Ludovic Huzieux, Associate Director at Artémis Brokerage. Especially since it is possible to change loan insurance afterwards.

Reduction of Early Refund Expenses

It is also time to negotiate the reduction, or even suppression, early repayment allowances. "In the event of resale before the end of the loan or if it is filled through a return of early money, the Bank applies penalties to the borrower who can not exceed six months of interest on the capital reimbursed by anticipation or 3% of the remaining capital, knowing that it is the lowest amount between these two calculations that is retained, "says Cécile Roquelure, director of borrowing studies. "It will always be possible to try to negotiate a posteriori. But the margin will be narrow, the bank can impose on the borrower to subscribe to his next credit", warns Ludovic Huzieux.

You must also learn about a possible modularity or postponement of monthly payments, in the event of a decrease or increase of the borrower's repayment capabilities. "These provisions, not proposed systematically, respond neverthelessly on the conditions specific to each bank and non-negotiable", warns Cécile Roquelure.

Finally, there is no prohibits from checking whether the loan transfer clause, which offers the possibility to subsequently move its first real estate credit on a new good, is included in the initial contract. A very framed option and rarely put forward by credit institutions.

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