The month of May promises to be profitable on the side of the mortgage loan, because the rates continue their fall … free. The reason for this decline is the intention of financial organizations to put themselves on an equal footing with the competition. Borrowers just have to rejoice.
A significant drop in rates
This decrease is estimated between 0.05% and 0.2% and the curve continues to decline. This is because there were still banks that have not yet lowered their interest rates at the beginning of the year . Four months later, they had to take action with major discounts. Otherwise, they would be stifled by the competition. Consequence: at this rate, the month of May of the year 2019 will enter the guiness of records of low rates. Evaluating an average of 0.05% for the reduction of rates on credits of duration up to 15, 20 and 25 years, Funtus qualifies the fall of history.
Brokers speak out
Cécile Roquelaure, spokesperson for the broker Funtus, announces the possibility of a credit of 20 years for a minimum rate of 0.95%, and another 25 years for a non-negotiated rate of up to 1.25 %. Some lending institutions have agreed to reduce their rates several times since the beginning of the year. A cumulative reduction of the rates of 0.30% is then evaluated.
Sandrine Allonier, representative of the broker MyFinancer strengthens: “Since the beginning of the year, banks have on average lowered their rates by 0.15%, which is significant for a borrower. “
In conclusion, the rate cut affects almost all credit terms. The borrower is likely to benefit from real savings if he knows how to make better use of the economy.
Borrower: How to save money?
The smartest borrowers do not waste time to renegotiate their loans, and there are many. This is the impact of falling rates. Take for example the renegotiation carried out by this Versaillese borrower who took out a credit of $ 675,000 in 2015, at a rate of 1.70% over 20 years. After renegotiation, our borrower was able to negotiate its rate half, that is to say to 0.91%, and this over 16 years. Result: he won 62 000 $ thanks to the operation, because the cost of his loan went from 121 700 $ to 62 540 $.