You repay a monthly mortgage payment. Over the total duration of the loan, a difference of a few tenths of a point on the rate can represent several thousand euros. Obtaining the best rate for your mortgage in 2024 does not rely on luck, but on preparing your file and making some technical adjustments that banks do not spontaneously detail.
APR and nominal rate: the distinction that changes the real cost of the mortgage
When a bank announces a rate of 3.50% over 20 years, it is referring to the nominal rate. This figure reflects only part of the total cost of the loan.
The APR (annual percentage rate) includes processing fees, the cost of borrower insurance, the guarantee (mortgage or collateral), and, if applicable, intermediary fees. Two offers displaying the same nominal rate can show a significant difference once these items are added.
Why does this distinction matter so much? Because comparing offers based on the APR reveals the real cost of the loan. A bank that offers an attractive nominal rate but imposes an expensive group insurance may end up being more costly than an institution with a slightly higher nominal rate. Before signing, always ask for the APR of each proposal and place them side by side.
To refine your comparisons, a specialized broker can centralize offers from several institutions. Platforms like lbexpertcredit.fr allow you to compare banking proposals and identify the one that offers the best balance between rate, insurance, and additional fees.
Borrower insurance: the most underutilized negotiation lever
Borrower insurance can represent a significant part of the total cost of the loan. Most borrowers accept the group contract offered by the bank without comparing it to other offers.
Since the Lemoine law, you can change borrower insurance at any time, at no cost and without waiting for an anniversary date. The lending institution cannot refuse if the new contract offers at least equivalent guarantees.
In practice, delegating insurance to an external insurer often significantly reduces the bill, especially for young and healthy profiles. Here are the steps to take advantage of this:
- Request several external insurance quotes alongside your loan search, ensuring that the guarantees cover at least death, total and irreversible loss of autonomy, and incapacity to work.
- Send the chosen quote to your bank with a substitution letter. They have ten business days to accept or justify a refusal.
- If the bank refuses, it must specify which equivalence criteria are not met. You can then adjust the contract and resend the request.
Insurance is the most easily negotiable item in a mortgage. By acting on this lever alone, some borrowers reduce the APR by several tenths of a point.
HCSF rules 2024: the relaxations that can unlock a file
The High Council for Financial Stability sets the limits within which banks grant mortgages. Two adjustments that came into effect on January 1, 2024, deserve your attention.
Renovation work on existing properties and repayment duration
Until the end of 2023, a purchase of an existing property with renovation work could only benefit from a repayment deferral (extending the total duration to 27 years instead of 25) if the work represented at least 25% of the total cost of the operation. This threshold has been lowered to 10% of the total cost since January 2024.
In practice, this means that a more modest renovation project can now qualify for a deferral. The payments in the initial years are then lighter, making it easier to comply with the maximum debt-to-income ratio of 35%.
Bridge loan and calculation of the effort rate
Another change: a bridge loan whose amount does not exceed 80% of the net value of the property being sold is now excluded from the calculation of the effort rate. If you buy a new home before selling the old one, this exclusion can make your file acceptable where it would have been refused before.
Borrower profile and banking file: what banks evaluate first
You may have noticed that two people with the same salary do not get the same rate? The bank does not only look at your income. It analyzes the stability of your situation and the management of your accounts over the past few months.
Here are the criteria that weigh the most in the evaluation of your file:
- The absence of bank overdrafts and payment incidents over the last three to six months. An impeccable account statement reassures more than a high salary accompanied by erratic expenses.
- The personal contribution. The higher it is, the more the bank reduces its risk, which translates into a lower rate. A contribution covering at least the notary fees is often considered a minimum.
- The chosen loan duration. A 15-year loan costs less than a 25-year loan, not only in accumulated interest but also in the nominal rate offered. Reducing the duration, even by a few years, can measurably lower the rate.
- The remaining disposable income after the monthly payment. Beyond the debt ratio, the bank checks that your current expenses are comfortably covered.
Preparing these elements in advance, even before submitting a request, puts you in a strong position. A solid file can be negotiated, while a fragile file is endured.
The rate you will obtain depends less on the macroeconomic context than on the quality of your preparation. Comparing based on the APR, delegating insurance, exploiting HCSF relaxations, and maintaining your bank statements are four concrete actions that, combined, can tip your mortgage in a favorable direction.
