Loan transfer, also known as credit transfer, you know? What is it for and who is it for? To be unbeatable on the issue and, by the way, make a good deal, follow the guide!
For whom is the transfer interesting?
Two very concrete cases prove to be advantageous for carrying out such an operation:
• You bought a property in the past while benefiting from a loan at a reduced rate, and you now wish to resell it and, at the same time, sell your mortgage.
• You are already an owner and wish to sell this property in order to buy a new one. You would like, in absolute terms, to settle your first loan and need to commit to a second loan to acquire your next home.
Sell the property and the loan
In the first case, at the time of the resale of your property, you must pay the remaining capital. Very often, an early repayment generates penalties and many additional costs, but thanks to the credit transfer, you benefit from the possibility of assigning your loan and the property concerned to the interested buyer.
This transaction, although not widespread in France, is proving to be a win for both parties. It allows the new buyer to benefit from the same rate as the previous owner. In fact, the more attractive the credit rate, as in recent months, the more attractive the offer for aspiring buyers.
Good to know: the future owner can take advantage of this rate if, in your original contract, the notion of “transfer of loan to a third person” was mentioned.
Note, however, that the loan transfer cannot be executed if you had taken out a zero-rate loan for this property.
Sell a property and buy another one with more fluidity
In the event that you sell with a view to buying back and need to take out a new loan, the transfer of credit can save you many additional costs, between the balance of the first credit and the opening of the new one. How? ‘Or’ What? You just need to contact the lender with the sales agreement for your first property and that of the purchase in progress.
For your bank to accept the transfer, it is obviously necessary that the amount of your acquisition is at least equal to the balance due, in connection with your initial loan.
Finally, for this operation to be viable and for the bank to protect itself in the event of default, it may have to ask you for a deposit or a mortgage. The deposit will thus be transferred on your new acquisition.
One last tip for the road
Loan transfer is a very good deal considering the exceptionally low rates currently offered by credit institutions. And to continue to benefit from a favorable rate in the future, make sure with your bank that it adds a mention in the contract indicating that you will be able to benefit from the same credit conditions if you wish to acquire another accommodation in the future.
And you, did you know about credit transfer? Have you already carried out such an operation and are you satisfied with it? Let us know your point of view and your experience, the blog is there for that!