Published on : 02 January 20192 min reading time
Are you planning to buy real estate or have you already signed a sales agreement and are wondering which bank to choose for your real estate financing? For this you wonder what is the bank that offers the best rate of the moment for your mortgage, right? Should you favour large banks or on the contrary go to a regional organization, an online company or banks specializing in real estate?
Dozens of companies can finance your real estate purchase
Many mortgage organizations are ready to finance your house or apartment. So how do you know which bank can offer you the best interest rate for your financing? You have the choice between: Large national banks, sspecialized organizations that only have mortgage loans, rregional banks, oonline banks, major insurance groups that also offer banking services or mortgage specialists that finance real estate projects.
Each bank’s rates vary over time
Each banking organization regularly changes its rate policy. For some, it will be very regular (every week or every 15 days), for others it will be a little more distant (every month or more rarely every quarter). The conditions that the same bank can offer you may vary from one moment to another depending on their new rate schedule and the adjustment of their policy according to their needs, objectives and financing conditions in markets, etc. In addition, banks must comply with certain prudential rules, particularly with regard to solvency. They can therefore lend in volume only an amount that depends on their own funds.
Your personal and business situation affects your loan conditions
Each bank will study in detail your borrower profile and rank you in one of their categories. These are different from one society to another and may even change over time depending on the strategies of each organization. Your situation will therefore be studied in a magnifying glass: what job you do, what is your income, your mode of consumption, your investor profile, your situation (official or permanent or contractor, temporary or CDD)? These criteria for a single or multiple loans will allow the bank to judge the level of risk you present and your ability to repay.