Any borrower is looking for the best rate. And this is quite normal since the interest attached to the mortgage represents more than 60% of its total cost!
To find the best rate, you have two options. You can try to go around all the banks for yourself to have an overview of the market, or go through a mortgage expert who will negotiate with you the best existing mortgage, and therefore the best rate?
This second option is the best because a mortgage broker will surely obtain preferential conditions compared to an individual who would go around the banks by himself. The reason is simple: it is its volume of business, which an individual does not have, which allows him to negotiate the best conditions!
You will never get such a good result by yourself.
The best rate guaranteed by your mortgage broker
Today, you should know that the credit conditions are negotiated by the headquarters of each of the banks and no longer by the bank branches directly. Bank advisers have no power over mortgage rates and do not necessarily make an effort to get you good conditions because they are no longer paid on the establishment of a mortgage!
Your mortgage broker is in close contact with the headquarters of each French bank, which grants them preferential conditions in terms of their business volume. He will therefore certainly get you rate discounts that no individual could obtain by himself !
It should be noted that all mortgage brokers have the same rate grids. The aim is to avoid unfair competition between them. A nationally renowned brand cannot offer you a better rate than an independent, local broker.
It is mainly on how they will use these rate grids that we must focus. Some brokers perfectly master specific techniques and arrangements that will allow you to obtain the best rate for a given mortgage… and others do not!
The best broker to get the best rate
You will understand, it is the man to choose rather than the sign . But how do you recognize THE broker who will negotiate the best conditions for you? Very good question ?
You have to trust your instincts … but not only! Here are some techniques to use to find your broker:
- Contact one or more brokers by phone to get a first estimate of the feasibility of your project. You will easily see if your contact is professional or not when he presents his way of working.
- A broker who directly announces the rate he could get you without explaining the method he uses to find it is not necessarily a good broker! Questioning the banks’ tour cannot unfortunately be done without a telephone conversation. It is necessary to study your file in detail before knowing which banks will be best able to position themselves on your file and grant you the best conditions.
Warning ! This technique is simply to make you dream to earn your trust!
- Meeting a real estate loan broker physically is almost essential. You will be able to see the universe in which he works. If this is reassuring, it’s a good sign ? If he takes the time to meet with you, that his presentation is good and that he determines with you the financing plan that suits you best before explaining his method of operation is even better! The fluidity of his speech will also be an indication of his professionalism.
To know! An online broker often just sends your coins to a bank advisor. This one having almost no power on the rates, the conditions which you will obtain will often not be the best… It is not for nothing that they are often free!
- Pay particular attention to the broker’s fees . All brokers are paid in two different ways:
- By customers via fees
- By banks as a business provider.
Take special care not to pay fees that exceed the administrative costs that a bank could charge you if you go through it directly (between 800 and 1200 $).
One last tip to find the best rate! Do not put several brokers in competition. The reason is extremely simple: a bank will consider that the file belongs to the broker who will send your file first. And if the second broker could negotiate better conditions for you in this same bank thanks to his expertise, he will be opposed to taking charge of your file.