Why perform a loan simulation?
By performing a loan simulation you will benefit from accurate information about the proposed purchase of your future property. The loan simulation will provide you with a detailed overview of the rates offered by the financial institutions. The value of the rate of a credit being the paramount factor defining the cost of your mortgage.
A loan offer adapted to your budget
Thanks to the ready simulation, the amount of the personal contribution that you indicate will direct you towards the offers most adapted to your budget. By evaluating your borrowing possibilities according to the loan, the loan simulation will allow you to calculate the amount of the monthly payments, calculate the cost of the loan, or launch a simulation of a zero interest loan.
Calculate your debt ratio to borrow
With the loan simulation, you will know the total amount and duration of your loan. During the mortgage simulation, you will evaluate your borrowing possibilities by indicating the amount of your personal contribution, your monthly income and your expenses. Thus you will know what is your debt capacity and what is the value of housing that you can not exceed during a real estate purchase.
Simulation for specific loans
About the “plus” zero rate loan, the Loan Simulation will evaluate the amount that can be granted based on certain criteria such as the type of housing and the geographic area in which it is located.
Subscribe to a mortgage
Many of us are those who do not have the financial means necessary for their project of acquisition or construction of housing and must therefore go through the subscription of a real estate credit to have this budget. To take out a mortgage also means you have to take out loan insurance to guarantee it.
Insurance of real estate credit
Linked to any home loan, loan insurance is an effective solution for lending institutions. With the borrower insurance, they have the guarantee that the loan will be repaid: the loan insurance allows the reimbursement of the credit by the insurer in case of death, disability and incapacity of the borrower.. It is therefore also for the borrower the guarantee that the insurer will assume the payment of the remaining deadlines in case of occurrence of situations covered by the contract.
There are two types of loan insurance contract: the “group” contract and the individual insurance contract (insurance delegation).
- The Group Loan Insurance Contract is the formula that is offered by the lending institutions. This is a group insurance that pools risks between borrowers who are customers of the same loan institution.
- The individual credit insurance contract is an insurance based on the situation and needs of the borrower. It is most often better suited to borrowers and may have a lower fee than a group contract.
In order to reduce the total cost of mortgage, it is recommended to take the time to compare the insurance offers of several insurance companies to opt for the most advantageous contract.
The duration of detention of the property
It is particularly interesting for first-time buyers to take into account the duration of ownership of the property. Indeed, for first-time buyers, possession of the property often does not exceed 10 years. It is therefore important to find out about insurance premiums for the first years.
The cost of loan insurance
It usually happens that one goes directly to the cheapest offers without taking into account situations that are not covered by the insurer. Although the guarantees of death, disability or disability are covered by the latter, it may indeed be that this is not the case for certain diseases called “non-objectifiable” (backache, hernia, psychic pathologies…). It is therefore important to be aware of the warranties and exclusions of the insurance contract before subscribing.
Compensation insurance or flat insurance
It is important to distinguish between indemnity insurance and lump sum insurance: in the event of loss of employment, indemnity insurance is an income supplement while lump sum insurance is a lump sum allocated by the insurer.
The constitution of the file
Take the time to prepare your insurance file in advance. You do not need to wait until your project is set up to carry out your search for the best insurance offer.
The medical questionnaire
The health declaration that you will make with the insurer may require you to undergo certain medical tests: choose preferably medical centers approved by the insurance company!