The cost of a loan buyback varies depending on the individual situation of each customer . They may include the variable application fees applied by the bank, the cost of the loan repurchase broker for his advice and negotiation service, the mortgage costs if the loan consolidation concerns a mortgage, and any compensation. early repayment (IRA).
Application fee
As for traditional bank financing, the bank will apply fees which are justified for the work carried out throughout the study of the loan repurchase file , until the publication of the preliminary refinancing offer.
The amount of the administration fees depends on the amount to be financed and the price list of the lending institution.
On average, their cost represents 1% to 1.5% of the total loan amount , and they are included in the sum of the new loan.
As a result, the administrative costs are not immediately payable by you, but amortized throughout the repayment period of the new financing.
Brokerage fees
The cost of the credit repurchase broker corresponds to brokerage fees, including support throughout your loan consolidation process, as well as negotiating in your interest the offer most suited to your budget situation.
Brokerage fees, expressed in%, vary between 3% and 8% of the total amount of the loan financed .
These fees apply only if the financial advisor has managed to get the loan consolidation proposal you were looking for, that is to say a loan consolidation that meets your expectations and your needs.
Like bank file fees, brokerage fees are an integral part of the loan restructuring operation.
Credit redemption fees with a mortgage
If the financial solution chosen is a mortgage loan repurchase, the operation will require the intervention of a notarized study for its services.
The notary will draft the notarial deed and notify the collateral, which results in a mortgage on the property of the borrower (s) up to the amount financed.
It should be noted that the price list linked to the notary fees is set by Decree No. 78-262 of March 8, 2022 fixing the notary fees ?
The mortgage loan repurchase fees to be paid to the notary are made up of the following elements:
- Tax duties
- Disbursements
- Emoluments
- Free fees.
Early repayment indemnities (IRA)
The objective of loan repurchase is to allow you to cover all your loans in order to obtain a single monthly payment.
After acceptance of the refinancing contract by the borrower (s), the bank carrying out the operation will reimburse the outstanding loans that you have taken out with various creditors.
It is common for creditors to require an early redemption indemnity (IRA), a financial clause that manifests itself in a prepayment charge applied in the event of a competitive buyout. Their amount must not exceed 3% maximum of the outstanding capital for the real estate regime (LS2), and 1% for the consumer credit regime (LCC) .
To learn more about loan restructuring, to understand the loan buyback conditions and choose your financial solution, continue to consult our guide .