by Stefano Stimilli, Credit Advisor and Mortgage Finalist
Now is a good time to start a fire mutual? This question is asked by everyone who is considering buying real estate, because interest rates are rising more and more. Most Affected? The fixed prices.
However, it must be said that banks are in fierce competition among themselves: due to the rise in interest rates, the demand for mortgages has decreased by a percentage of about 20-30%, so it is necessary to seize this magic moment that sees a lack of inquiries and at the same time demand from the banks, which have to pay out the large amount of liquidity accumulated in recent years. For that, it could be very convenient to take out a mortgage now.
1. Play opponent’s weapon
Certainly the rates are high and the expenses greater than before. In this context, however, the consumer has an arrow in his bow: the weapon of competition between banks. Discounts are possible on acquisition costs, lower insurance costs, the spread can even be reduced by 0.20%-0.40% to come to a lower fixed rate.
2. Rely on a professional
What can the consumer do? In order to move independently, you should know the conditions and rules of all banks. You can play at various points: the term, the characteristics of the rate-to-earnings ratio and more. For example, some banks may even lower the interest rate by 0.20% to 0.30% based on residual income minus the mortgage payment. We brokers know, the customer doesn’t and therefore risks accessing a mortgage without discounts. There are further discounts, for example, on green mortgages or when opening an account when the mortgage is taken out. Therefore, to be guided by this mare magnum, it is better to rely on a professional, a Credit Advisor.
3. A bank comparison
The advisor compares the different banks to ensure that the client can get the best terms on the market. But what are they now? It depends on the duration of the loan and the earning capacity, as well as the amount of liquidity provided: you can go from a fixed interest rate of 2.80% – 3% to 6% for a 100% transaction. The banks with the cheapest costs at the moment are the French ones, such as BNL and Credit Agricolebut they also offer good conditions ING and CheBanca!While Intesa Sanpaolo and Unicredit They are now chasing the competitors’ discounts, so they may soon be making very interesting offers. They are also very valid at the moment pre-financing requests, who take care of the financing request before you start looking for a house. This can be a valid solution to have liquidity available and shorten timing.
4. Consider additional costs
That’s often the real difference Extra costs, which in many cases represent the actual profit from the mortgage practice for the branches. For this reason, it often happens that store managers try to include them in the budget proposals. In reality, these are additional services, so it is necessary to think based on the needs of the customer and understand whether these services are really necessary or can be dispensed with. Thanks to the use of an advisor, these costs can be avoided more easily, since the operations can be carried out directly on a banking platform rather than in the branch.