When one decides to buy a property, one often starts, wrongly, to consult the classifieds. Because the disappointment can be great between the budget imagined and the effective one. A real estate mortgage simulation will define the budget and know the total cost of future credit.
Determine budget and total cost of credit using a simulation
Conducting a mortgage simulation is essential to verify the relevance of the project. Potential buyers usually have a fairly precise idea of the type of property they want to buy: house or apartment, number of rooms, location… The approach is also very simple and takes only a few seconds. Go to one of the many real estate mortgage simulators on the Internet.
For example, you have to fill in the total amount to borrow, ie the price of the property added to the notary fees, the guarantee fees, the agency fees minus the personal contribution. The candidate for the mortgage can then try several formulas to ensure that he can borrow the amount concerned with monthly payments that do not exceed his debt ratio, or 33% of his income.
What about the deferred property loan?
Sometimes the type of real estate project may require what is called a grace period. This amounts to delaying the repayment of monthly payments. In concrete terms, several cases can arise:
- the purchaser can not assume the repayment of the monthly payments and the rent or monthly payments of the old credit which continue to run until the moving in or sale of the old property.
- the buyer has purchased a property in the future state of completion and the repayment begins while the property is not yet delivered.
- the buyer must renovate his property before he can move in, which means paying two units during this period.
It should be noted that not all banks accept deferred reimbursement. They are also more or less flexible and can offer various solutions:
- the total deductible: the repayment of the full monthly payments (capital, interest, insurance) is delayed at a later date.
- Franchising in installments: sometimes offered by banks when an acquirer builds his property. This makes it possible to change the repayments according to the progress of the works.
- partial deductible: a generally preferred formula based on the immediate repayment of interest, but with a deferred capital repayment.
This practice, however, has a cost. And regarding the last solution, you should know that the interest is very high at the beginning of the loan. The purchaser must pay about half of his future monthly payments.