You have a mortgage (or you are a tenant) and you have accumulated loans from all sides. The monthly payments add up and you “suffocate” a little more each month. You have decided to make a loan consolidation to reduce your debt. But, you ask yourself the question: what are the credit surrender charges ?
Credit surrender fees in detail
Fees for a real estate loan redemption. Given the very low fixed rates applied for housing loans, you want to try a real estate renegotiation with your bank. This one can accept if your accounts are well managed without any incident, nor delay on your mortgage (but not always). Renegotiating your loan with the bank that loaned you may incur fees. But, in the case where it refuses to lower the rate (it has the right), it will seek other banks.
Redeeming your home loan with another bank requires prepayment fees (capped at 3% of outstanding principal) and guarantee fees.
Fees for a mortgage buyout following a separation
In case of divorce or separation, your ex-spouse may claim a balance because he (or she) participated in the payment of the mortgage during your life together. In the repurchase of loan, it will be necessary to envisage a prepayment penalty (capped at 3% of the outstanding capital). In effect, the redemption of the balance is considered as a real estate loan which is added to the capital remaining due of a previous mortgage. The guarantee and file fees will be added to your request for financing.
Fees for a consumer credit redemption
For a repurchase of credit without mortgage, the expenses will be: the expenses of file of the bank and the expenses of the intermediary. All fees are included in the loan application. A mortgage financing involves notary fees for the implementation of the mortgage added to the file fees of the bank and the costs of the intermediary. The advantage is to benefit from longer durations and lower rates..