To assess the total cost of a civil servant home loan once the capital has been repaid, it suffices to analyze and add up all the indicators that make up the APR, ie the overall effective annual rate.
Interest calculated at the nominal rate
Embarking on the great adventure of buying real estate is also the time to ask the right questions. The one that comes naturally is to know how the cost of an official mortgage is calculated. First of all, the home loan is a banking operation requested by a household that wishes to borrow a sum to regulate the purchase price of housing. It is, therefore, a mechanism that contributes to helping homeownership. The bank which formulates and grants the loan offer obviously expects the owner to repay the capital while injecting a monthly share dedicated to interest as remuneration for the lender.
Interest is, therefore, the first element to be included in the cost of a civil servant home loan. They are calculated according to the level of nominal interest rate offered by the bank. The best rates are often attributed to the most attractive borrower profiles that professionals are looking for. In addition to the quality of the profile (age, income, assets, account management, etc.), the duration of the credit has a direct impact on the interest rate since the loans made over limited periods incorporate lower rates.
At the moment, the economic situation is rather happy for people who plan to buy housing on credit since the rates are at the lowest in history. The French went into debt in September with an average rate of 1.18% in September, 0.01% more than the historical record for August 2019.
Add the loan insurance rate, an expensive indicator
To identify the cost of a government loan, add the borrower insurance rate to the nominal rate. Here, it is simply a question of the cover which will guarantee the reimbursement of the loan for situations recognized in advance in the contract (at least death and disability). For the borrower, it is advisable to make a personalized cover for his profile, but also to negotiate well the cost of his civil servant loan insurance because, with the canonical rates of the moment, his cost sometimes exceeds the total amount of interest. over the entire term of the mortgage.
If the offer proposed by the bank is not convincing enough, then it is possible to delegate credit insurance to a competitor before the start of the loan. After signing the loan offer, the official can change borrower insurance within 12 months, but once this period has elapsed he can make a delegation on each anniversary of the contract. For several months, the date of signature of the credit offer has been the annual reference date for termination.
Additional fees in the APR
In addition, the bank generally charges administrative fees in order to compensate the time that the advisor spent from the creation of the file until the release of the official credit. Application fees are also paid during the amortization phase of the financing and must, therefore, be entered in the APRC. Like other indicators, borrowers can play the trading card to limit the amount.
For additional costs that are invoiced according to the characteristics of the files, the APR may include mortgage costs when financing is guaranteed with a home owned by the home. Finally, fees are applied when a bank intermediary is requested for an official home loan transaction or a credit buyout in particular.