Traditional banks have become more competitive in terms of mortgage rates. However, online banks continue to offer more attractive offers to a certain extent. Explanations.
Low credit rates depending on the case
On average, mortgage rates are around 1.14% for a 20-year loan, not including borrower insurance. But if previously, online banks charged rates 0.2 to 0.4 points lower than physical banks, now the latter have caught up. In other words, digital banks don’t necessarily charge the best rates. It depends on the borrower’s profile, the nature of their real estate project, their personal contribution, the duration of their loan and the amount requested.
Therefore, it is recommended to compare mortgage offers to find the lowest rates. However, online banks are always a little ahead of the game as several of them, such as: Fortuneo, Boursorama and BforBank, charge nominal rates lower than the national average.
More flexible credit granting conditions
Online banks accept mortgage applications more easily than physical banks. Indeed, most of the time, they do not require personal input. However, financing 10% of your real estate project with own funds allows you to reduce your borrowing rate. At the same time, it is no longer compulsory to have your income domiciled in the bank. Financial institutions prefer to apply reduced rates of 0.1 to 0.2 points to encourage their customers to open an account to deposit their money. If you would like to find out more please check; bilanmagazine and mediaplacing
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