What is the real estate loan?

Good Credit is undoubtedly the French bank with the most branches and branches. Which makes it a proximity bank. We studied the real estate loans she developed.

This is the classic home loan par excellence, the one that the vast majority of households currently choose, here are its specificities.

A fixed-rate mortgage

A fixed-rate mortgage

  1. The rates are determined from the beginning and it will not change the entire term of the loan, whatever happens.
  2. As a result, the amount of maturities remains stable from beginning to end. No surprise.
  3. This type of credit makes it possible to see in the long term since its cost is known in advance.

A repayable rate amortized real estate loan.

This kind of loan leads to some risk-taking, read our explanations below before choosing one of the two options.

  • The starting rate is known, it will be lower than the rate of a fixed rate credit.
  • The rate is index-linked, in this case: a three-month average of the 12-month Euribor. (Basically, this is an average rate applied by some European banks to remunerate deposits)
  • The rate proposed by Good Credit is capped (+2 / -2). This means that if rates fluctuate a lot, the impact on the rate will be somewhat capped at + 2% or -2%. For example, the starting rate is 1.3%, it can not, in any case, exceed 3.3% thereafter.

Other features:

  • For these two credits: The amount must be at least 15,000 euros, but there is no ceiling. (The only limit is the repayment capacity of the borrower)
  • Capable Revised Version: The amortization period will not be less than 2 years nor more than 18 years.
  • Fixed-rate version: The duration will be between 2 and 25 years.

Fixed-rate credit seems interesting with one of the lowest rates

Fixed-rate credit seems interesting with one of the lowest rates

Currently, most banks have not been offering adjustable-rate loans for quite some time (actually since rates have been falling steadily). We do not know why Good Credit is somehow an exception.

We advise you to opt for the adjustable-rate credit because as we said above, the rates are at their lowest, and if they go down again, it will be only a few tenths of a point, which would give you again not important. On the other hand, if they increase (it is very possible, because who knows what will happen in 10 or 15 years?).

Then your monthly loan payments will increase inexorably up to a ceiling of + 2%. Do not be fooled, it is the rate that is indexed, not the monthly payment. A fluctuation of + 2% can easily lead to an increase of more than 100 euros per month or even more! (Depending on the amount borrowed).

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