REDEMPTION OF CREDIT: Are You Still Concerned?

Despite the slight rise in interest rates, there is still time to renegotiate its mortgage. The conditions remain very favorable at the beginning of the year.

DB Lenders’s best rates are 0.95% over 15 years, 1.15% over 20 years and 1.40% over 25 years.

For latecomers who ask the question, it is not too late. The first step in determining whether the repurchase transaction is profitable is to do a simulation with a broker. It is free and without obligation.


Profiles that must be considered

credit loan

There are still a significant number of real estate loans that can be renegotiated. However, some profiles are particularly concerned:

  • You had a pay raise : borrowers whose incomes have increased over the last few years need to consider the desirability of a buyback for two reasons.

First, because these wage developments allow them to access preferential rate schedules and thus benefit from more favorable rate conditions.
Then, because this new financial situation allows them if they wish to reduce the duration of their credit and, consequently, reduce the total cost of interest.

  • You have savings : borrowers who have their own funds can reduce the amount of their mortgage while enjoying the best market rates.

By injecting their contribution, they can either reduce the duration of the loan or reduce the monthly payment.

  • You have subscribed a mortgage before 2015 or at a rate higher than 2.5% :
    There are some conditions to respect for the operation to be profitable.


Significant difference in rates

credit loan

First, there must be a significant difference in rates to absorb the cost of ancillary costs (at least 0.7 points difference).

Then, it is better to renegotiate at the beginning of the loan, and more precisely in the first third, that is to say when the customer reimburses the maximum interest.

If only the capital remains, the operation will not be interesting. Lastly, it is preferable that the outstanding capital be greater than 70,000 euros.

Example : A couple took out a loan of 300,000 euros in 02/2014 at a fixed rate of 3.10%. Given the sharp drop in rates, the couple contacted DB Lenders

In the buy-back operation, they want to inject 20,000 euros of contribution. You will find that the gain is IMPORTANT.

  12/2014 Takeover in 02/2017

solution 1

Takeover in 02/2017

solution 2

Value of the loan 300,000 euros 253,324 euros

Remaining capital – € 20K + 3% penalties

253,324 euros

Remaining capital – € 20K + 3% penalties

Rate 3.10% 1.15% 0.95%
term of the loan 20 years 17 years 14 years old
Monthly 1679 euros 1368 euros 1611 euros
Interest cost 102,924 euros 25,689 euros € 17,319
Economy   50 850 euros 59,220 euros

Since 1999, DB Lenders advises borrowers in the search for their real estate financing.


DB Lenders Promise

DB Lenders Promise

True to his promise, DB Lenders maintains his position by offering a free service: “banking fees and brokerage 0 € for any financing of a principal residence, secondary and the first rental investment” .

DB Lenders is independent of all financial institutions. As a member of AFIB, the French Association of Banking Intermediaries, DB Lenders is committed to respecting the code of ethics.

DB Lenders also offers solutions for professional credits and credit redemptions.

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