Many borrowers are looking to include one or more consumer loans in the mortgage, a way to take advantage of the mortgage loan repayment conditions (rate, duration, interest, etc.) and to have only one monthly payment as a withdrawal. Here’s all there is to know.
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Home loan consumer loan: a good idea
Including a consumer loan in a mortgage is part of a real good idea on the part of the borrower since the latter seeks to simplify his repayments of bank debt. In the idea, it would be to add to the mortgage the amount of consumer credit so as to keep a single monthly payment but above all to take advantage of the rate obtained for the home loan.
Technically and legally, it is possible to add an amount of cash in a mortgage but this is only possible at the time of subscription and this amount must report to any work reserved within the habitat. It is not possible in a home loan contract to come in the process of reimbursing any consumer credit (personal loan, work loan, car loan, etc.).
Include personal or auto loan after home loan
Many households have taken out a mortgage for their first acquisition, they are in their first years of repayment and one has the idea of financing a personal project with consumer credit. The idea is, therefore, to again take advantage of the conditions of the home loan to finance the personal project, whether for leisure, work, buying a car or even a vacation.
The legislation on the mortgage does not allow to include in an existing contract a consumer loan, on the other hand, it is possible to proceed to a repurchase of credit which makes it possible to combine the two loans. This financing offers to benefit from a single monthly payment, a single rate.
Include a consumer loan before the mortgage
A borrower being at the time of the subscription of the mortgage and having a consumer loan in the process of repayment can ask the bank to propose a single contract for the two loans, the bank must then propose credit consolidation, an operation which allows you to buy back consumer credit and add an amount dedicated to a real estate purchase within the same contract.
Consumption credit in mortgage loan: consolidation
Credit consolidation is an operation which proposes to a borrower to collect credits of the same kind as credits of different nature. That is to say that we can group a mortgage with consumer loans as we can only group consumer loans. This operation brings more balance in the finances of the home because with a single monthly payment and a readjusted repayment period, the loan charges are better distributed with respect to the household income.
In its establishment, the grouping of credits involves entrusting its project to a specialized financial institution, it can be a traditional bank, a credit organization or a broker. Simulation is also the first practical and useful step to set up, it allows you to have an overview of the monthly payment including the resumption of the mortgage and / or consumer loans. This makes it easier to project yourself. Good to know: it is possible to choose the date of withdrawal of the new monthly payment and we can include an amount of cash to finance a personal need.
Are the rates as attractive?
Two types of credit grouping can be offered, consumer loan and real estate grouping. If the name suggests that the first transaction only includes consumer loans, this is not necessarily the case. In fact, it is the share of real estate loan to be taken over which determines the type of credit buy-back, so it suffices to remember that above 60% of real estate share to be taken over in the grouping, it will be so-called real estate grouping.
In this case, the rates are more attractive and sometimes even similar to those offered in conventional housing credit but like all financing, only a thorough study allows us to know precisely the borrowing conditions because each situation is unique and requires a personalized approach. The simulator allows you to obtain an estimate quickly and free of charge. Good to know: rates change every month, so it is a good idea to file a free simulation online to take current loan conditions.