What is the cost of a Crédit Populaire Eurpéen mortgage buyback?

The financial crisis has hit Europe since 2008 following the consequences of the subprime crisis in the United States. The countries making up the European Union have become aware of their significant debt and have decided to reduce their public deficit (i.e., the gap between public revenues and public expenditures). In summary, the member states of the union must make savings. What is the cost of a mortgage loan buyback?

It has not escaped anyone that this situation has led to an increase in tax pressure in Europe and a significant reduction in public spending. In short, household purchasing power has been continuously under attack by governments for months (for example, the French government hopes to raise new taxes during the 2013 fiscal year for no less than 20 billion euros).

In this context of drastic reduction in household purchasing power, it may be interesting to consider the question of buying back your mortgage loan with the reasonable aim of reducing the monthly expenses that weigh on the household.

Can you buy back your mortgage loan?

The answer to this question is certainly positive. You always have the option to proceed with the buyback of your mortgage loan.

When is it advantageous to proceed with the buyback of your mortgage loan?

Essentially in 4 specific situations:

1. When you have significant work to do in your house and you need new financing. The most natural solution will be to make an addition to your initial mortgage loan and thus at the same time buy back your original mortgage loan to have only one that encompasses the initial purchase cost of the house and the cost of the new work.
2. If you notice a significant drop in interest rates in the market and you believe that your initial interest rate is too high.
3. If you have taken out a mortgage loan with an original variable interest rate and the rates in the mortgage loan market are falling.
4. If you have several loans or installment credits in progress and you believe that the total monthly payments are too high. In this case, it will probably be wise to proceed with a credit consolidation or centralization of your credits to have only one monthly payment. In this case, your house is used as collateral in the context of a mortgage loan. The repayment periods will be extended, which will cause a reduction in the total monthly repayment burden.

What is the cost of a mortgage loan buyback?

The cost of buying back a mortgage loan depends on the amount of the new mortgage loan.

There will be a cost related to:

1. The release of the mortgage registration that weighs on the original mortgage loan;
2. The new application fees for setting up a new mortgage loan;
3. The new fees for the registration of the new mortgage.

How do I know if it’s advantageous to buy back my mortgage loan?

This question should be the subject of a thorough analysis by a professional who will study your case individually. Schematically, we can say that when you manage to reduce your monthly expenses through a mortgage loan buyback, you should consider the opportunity to proceed with it.

At Crédit Populaire Européen, our specialized brokers are at your disposal to examine this question with you free of charge.