The assurance of obtaining the best interest rate with many partner banks
One of the most important things to consider when buying a loan is the interest rate. This rate as well as the refinancing repayment period condition the cost of the operation. By obtaining the lowest market rate, a borrower can obtain a substantial gain on their credit repurchase.
What you need to know in this approach is that by using a broker, you can get the lowest rate. This is possible if the brokerage intermediary has several partner banks which offer buyout offers on different conditions. Because he maintains a privileged relationship with these financial institutions because he brings them clients, the broker can obtain a much lower interest rate than an individual who performs this transaction alone. In addition, financial institutions often change their offers. Only a partner broker is notified of these changes and can pass them on to his clients.
You should know that the network banks do not market this loan restructuring operation. These are specialized banks that have partnerships with brokerage professionals who offer these financial products. And they work with brokers to improve the visibility of their debt consolidation offers and to increase their client portfolio.
What are the advantages of using a non-exclusive agent for banks?
A banking intermediary (IOBSP) can work with a single bank or with several banking establishments like us. In the latter case, we are talking about a non-exclusive agent for the banks. The advantage of this status is that the borrower can benefit from a better offer because the broker plays on the competition among a large selection of banking proposals. A good broker also negotiates the various elements of the buy-back, such as application fees, borrower insurance premium, early repayment indemnities, etc. All of this reduces the final cost of the transaction.
In addition, the fact of having recourse to an intermediary in banking operations makes it possible to reduce the waiting time due to the canvassing of the banks and the processing of the file. The intervention and advice of a brokerage professional allows a borrower to access this refinancing solution after a maximum of 2 months. Whereas if he does the canvassing of the banks himself, it can take him several months.
It is still necessary that the takeover proposal is advantageous because banks are used to offering a fairly high interest rate for risky profiles. If he has banking incidents, a low living balance, a debt ratio exceeding the norm of 33%, he is less likely to be granted an attractive buyout offer if he does not go through a specialized broker. debt consolidation of complicated files.
Does the use of a broker pay?
Simulating or using the debt restructuring calculator on a broker’s site is free. Just like setting up a file, looking for the best buyout offer, negotiating the various parameters of this transaction unless the borrower accepts the buyout proposal from the broker.
The invoicing of broker services is only applicable if the buyout candidate accepts his offer.
To conclude, the repurchase of credit has a cost which can be high if one does not have adequate knowledge of this market of refinancing. The accompaniment of a broker specializing in buy-back helps avoid errors that can cost a lot on its budget and its debt ratio.