Acquiring real estate and owning is the dream of many people. It is a project that requires substantial capital. In order to raise the necessary amount, it is often necessary to take out a mortgage. But to get the best real estate rate, going through a real estate broker is an effective solution. It is possible to use the services of a free broker or a paid broker. Will there still be free credit brokers?
Credit broker in 2020: what is the situation?
If you are looking for a real estate broker, you may have come across free and paid services. Both types of brokers receive a commission on loans obtained from banks. But the difference generally lies in the administrative costs. In fact, paying brokers bill their clients the fees. File fees are often between 1% and 2% of the amount obtained from the loan. Other brokers charge an average commission of 1000 dollars per file. Immofinances.net was until the end of 2019 the 1st network of free credit brokers.
But for this year 2020, the banks’ policy with regard to the business transfer commission has evolved, some banks such as Lite Lending and some Good Lenders Credit have simply stopped collaboration with all of the brokers, others have lowered their brokerage commission rates, such the Cream Bank and Best Bank. Very difficult for brokers to find a balance in their operating account… Free brokers are the first affected… because depriving yourself of client fees and moreover, suffering a shortfall for the same job is a fairly delicate exercise.
In this climate, some free brokers have become paying. Immofinances.net opts for a mixed formula. This is the “all inclusive 1% formula”, the bank commission added to customer fees must total 1%. Immofinances.net announces “to offer up to 100% of its fees according to the conventions of the banking partners except professional credits, rental loans and grouping of credits”.
In fact, we can read on the site, Immofinances.net invoices 1% of fees from the amount financed to the client from which is immediately deducted the commission to be collected by the bank retained by the client. The client is therefore billed the difference when the bank pays the commission to the broker.
In 2019, this commission was 1% of the sum obtained by the client. For this year 2020, it can be up to 0%, 50%, 70%, 80% or even 100% of the loan amount depending on the establishments. The client may thus be liable for a commission of 0 to 1% of the financed amount invoiced by the broker.
Why use a mortgage loan simulator?
The 1% of the loan amount can constitute an additional charge for many borrowers, however the quality service report at a moderate cost is exceptional, there are takers…. To remedy the situation, you will be able to use the mortgage simulator with a credit expert Immofinances.net near you. The simulators are present on the sites, simple to use, free, but also available 24 hours a day. To use them a few clicks are enough for the appropriate form. You will, for example, be asked to provide your name, the type of loan you wish to take out, the duration of the loan envisaged, your charges, as well as your income.
How to calculate your borrowing capacity?
Before you start looking for the best financing, you will need to know precisely your borrowing capacity. There are several tools to achieve this, the mortgage calculator for example. You just need to enter the desired amount, the total duration to get the monthly payment.
Generally, the calculation is based on a duration of 7 years to 25 years. Logically, the longer the duration of the contracted loan, the higher the rate. All the credit experts of the Immofinances.net network are at your disposal to optimize your real estate project.