Real estate credit: how to negotiate IRA?

Early repayment benefits are a standard in the banking sector and clients are forced to do so by their contract. Nevertheless, there are some tips to avoid paying this penalty… We tell you everything! spanishrefugees-basquechildren.org for clarification

What is prepayment and related fees?

What is prepayment and related fees?

The custom is that when subscribing to a mortgage, a clause imposes early repayment indemnities. Indeed, the bank loses money if you repay the amount due before maturity. To guard against this, the lending institution will ask you to pay:

  • six months of indemnities;
  • or 3% of the total sum borrowed in order to cancel your contract.

  3 legal reasons that dispense you with early repayment benefits

  3 legal reasons that dispense you with early repayment benefits

You can not pay the penalty if your loan was made after July 1, 1999. This three documented cases:

  • if you sell your property as a result of a change of workplace. This being valid even for a single spouse if you are married;
  • the death of a spouse;
  • following a forced stoppage of your job.

  How to reduce or even cancel the reimbursement fees when negotiating?

  How to reduce or even cancel the reimbursement fees when negotiating?

It is possible to negotiate IRAs. For this you can play on several boards. In the first place, before contracting the loan, you can negotiate that this clause is not put in the contract. This makes you incur the risk of seeing your rate slightly increased.

Another way upstream of the signing of the mortgage loan, from the time of your simulation mortgage before making your choice, consider trading a variable rate, this increases the chances of removing the early repayment fees. This demand is relevant when rates are high.

If this clause is already in your contract, then you can play the competition, including relying on a real estate broker to which you can indicate your desire to negotiate this point early repayment benefits. You will enjoy in addition to its ability to get you the best conditions for your home loan!

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