Making a second credit redemption allows you to benefit from a better rate or a smaller monthly payment. A repurchase redemption is generally due to an unfavorable income evolution, which was not foreseen at the time of the first loan consolidation. To buy back a repurchase of credit, it is necessary to appeal to banks and specialized brokers. Here are our solutions.
Renegotiating a repurchase of credit is sometimes a real fight! Ongoing credit redemption will mostly depend on the type of credit surrender to restructure. It’s not the same if you are renting free, renting or owning your home… It’s not the same thing either if you want to save yourself from over-indebtedness, or if you want to invest in real estate.
Here, it is a person who had to renegotiate his mortgage, following the dismissal of his spouse. Guarantee a loan with a mortgage
Ideal conditions to make a redemption repurchase of mortgage:
- To own your home
- Your current credit redemption must be more than one year old
- Do not have too many new credits
- Do not have a late payment on his credit redemption in progress
These conditions are not eliminatory, everything is negotiated. For example, we can consider renegotiating a loan buyback that was made less than a year ago. Legally, there is no time limit between two purchases of credit. It is at the free choice of the banking establishment.
For those who buy a buy back credit that already provides housing, it’s harder. You have to take into account the mortgage ratio.
What is the mortgage ratio?
The mortgage ratio or “mortgage quota” is an indicator used by banks to measure the feasibility of a mortgage redemption. It is the ratio between the value of the property and the amount of the repurchase of credit.
The amount of all credits to be repurchased for a second time generally does not exceed 80% of the value of the property. If our real estate has increased in value since the first acquisition of homeowner credit, it’s all good. If on the other hand, our housing has dropped in value, it may get stuck.
Redeem a mortgage purchase
As we have seen, it is mainly the mortgage portion that counts in a second credit surrender. If the ratio was already 80%, the renegotiation of the loan will be very difficult unless the property has increased in value since.
In this case, and with mortgage rates at the lowest, you have every advantage in renegotiating your mortgage loan for the second or third time!
The maximum repayment terms can sometimes be up to 35 years, like any other conventional home loan. If you are over 60 and want to buy a long loan, read our “retiree credit” article. You will not get a 30-year credit redemption if you already have 90 (but there may be a solution anyway).
Owner, I do not want to mortgage my home to buy conso!
Even if you do not use your real estate as collateral, the simple fact of being owner puts in confidence. The bank knows that it can always grab you something in case of great concern.The owners of their homes have more facilities when they buy their current credit redemption for the second time. debt ratio allows it? If the new debt ratio is lower than the maximum accepted by the bank, then yes, a new credit is possible. Even after buying a buy back credit.
Reminder: It is generally accepted that one should not have more than a third of one’s income spent on loan repayments.
Tip: If this new credit is dedicated to a real estate investment, it will be very well seen by the banker.
Make a third credit redemption?
Make another redemption repurchase of loans, it is possible, and why not even a fourth. Every change of situation on your part is a justification for renegotiation.
We advises you never to let yourself fall asleep on your credits.
Falling rates? Let’s see if it would not be advantageous to renegotiate again. A new financial problem? Maybe even after the second credit buy-back, there is still room to negotiate.
As long as our debt ratio allows, everything is possible.
How to be sure of being able to repay a credit? Borrow from family