Lower rates of home loans

For the month of July 2009, the observatory Housing Credit / CSA found that the average rate (nominal rate excluding insurance) of the mortgage is 3.96% a decrease of 18 points (the average of June to stood at 4.14%).

The average was down 119 points since November 2008, the average rose from 5.15% to 3.96% in July 2009. This decrease of approximately 120 points corresponds to a lower monthly payment by about 10%.

The mortgage market is becoming attractive again.

The outlook for late 2009 early 2010:

1. Renegotiation of mortgages taken out in 2008

At present, we can assume that the majority of the decline is over, however, the economic environment remains uncertain rates could remain at that level for some time. This fact encourages households purchased a home loan in 2008 (credit conditions are less favorable) to renegotiate their mortgage.

Several solutions are available to households to renegotiate their credit:
- Go to their bank and try to negotiate a more favorable rate
- To compete with various organizations in order to obtain better conditions
- Applying for a mortgage broker who has the mission to offer the best conditions for his client.

Through a broker, usually within 48 hours an agreement is reached and the process is completed in about a month.

2. Resurgent variable rates

The Chatel law has strengthened regulations around the floating rate will allow their reappearance in a rather massive. Indeed, the gap between variable rates and fixed rates can reach 150 basis points within the same bank. Depending on its level of debt, the borrower will often as the only possibility to subscribe to an adjustable rate loan for its financing. But the fact of purchase at a variable rate can be quite positive in that the rate is capped between 1 and 2.

About Prime Rate:

Prime rate, mortgage broker simulates your loan in 48 hours with no obligation. You will find the best rate with its partner banks.