If there was a best bank among all for your mortgage, we, real estate brokers , would be unemployed… It would be easy for you to contact this bank, to obtain your mortgage at the best rate and the best financing conditions. (and yes, it’s not just the rate that counts…). In reality, there is no better bank for your mortgage, but banks, which depending on the circumstances, make you more interesting offers (sorry for the enticing title…).
To find the best bank for your mortgage, you will therefore have to take into account the mortgage rate, but also the financing conditions according to your borrowing profile in particular. But above all, approach them all!
Which bank offers the best mortgage rate?
We said it in the introduction: there is no better bank for your mortgage, just better opportunities, and it is our job as a real estate broker to offer you the best mortgage for your borrower status.
That said, it is possible to sort the banks according to their current mortgage rates. Please note that rates may vary over time.
The best banks for your home loan in 2020
In order to get an idea, you can consult the current rates of the various banks. Of course, the list is not exhaustive. Similarly, these rates are indicative and may vary by region and borrower profile! To be taken with tweezers, as we have previously said.
The regular variation of real estate rates
To briefly explain the universe of real estate rates, they vary according to several factors. Banks actually have a small margin to set interest rates. They must take into account the key rates of the European Central Bank (which serves as a reference rate).
From these elements, they will vary the borrowing rates up or down according to different exogenous criteria:
For these reasons, banks will review their home loan policy regularly (usually every week or every 15 days). In other words, the notion of the best bank for a mortgage in terms of rates changes regularly.
The loan conditions according to your personal and professional situation
There is another point that makes the notion of the best bank for a home loan very subjective: the quality of the borrower profile.
Indeed, we are not all equal in the face of banks. And since it is a matter of big money and not of feelings, the richest will be privileged.
The more you will be able to provide sufficient guarantees, in particular by means of a substantial heritage via the subscription of mortgages or IPPD (registration in privilege of lender of money) , the more you will be able to obtain a rate and conditions of interesting loan.
In addition, your professional situation is particularly important since it determines the amount and stability of your income streams. The amount of your income allows you to calculate your borrowing capacity and in particular to ensure that your debt ratio does not exceed 33% . Moreover, the commercial dimension should not be overlooked: the bank will seek to retain the best paid people, who are likely to regularly subscribe to banking and financial products. To do this, it will be ready to offer advantageous financing conditions.
As for income stability, civil servants will often be more pampered than the self-employed, because of the resulting job stability.
Finally, other extra-financial elements may be taken into account such as the level of diploma, the borrower’s sector of activity, age, marital status, etc.
The combination of financial and extra-financial elements will encourage or not the banks to offer you the best mortgages! It remains to know how to choose your bank…
How to choose a bank to get the best mortgage?
This is certainly the most common solution, but also the most energy-intensive and time-consuming.
Approaching the banks yourself requires patience and unfailing determination. Imagine the picture: you are a (modest) inexperienced borrower (since you do not buy a house every morning) facing a large impersonal company where each interaction gives rise to well-established processes.
You then go to each branch and get in touch with a bank adviser (or even a branch manager if you’re lucky). Trained in sales and customer advice, they welcome you with a big smile and tell you on your simple declarations that you will be able to obtain your mortgage.
They then use their mortgage simulation software and send you a document with the loan rate to which you can claim (this document does not constitute a mortgage loan offer and does not contractually bind the bank). At the end of the interview, your adviser lets you know that you will have to transfer your account to the bank and that it is in your interest to take out the bank’s borrower insurance.
This is where things get tricky. In reality, your bank adviser has no power over the granting of your mortgage, it is only an intermediary acting as a bridge between you and the bank’s mortgage service. Then follows an impersonal process where you send a set of supporting documents to build your mortgage file:
With regard to these elements, everything can change. The bank may finally refuse to grant you a mortgage, or even raise the mortgage rates, or even refuse to answer you… The time for negotiation is over, since time is running out.