As already mentioned, given the current spread war, if you have a spread of 2.5% or more, you can save a lot of money by transferring home loans. Then find out the 5 steps you need to take to transfer your home loan.
Analyze current credit characteristics
Before you even make the decision to make the transfer, you should take a good look at the characteristics of your credit to see if it pays off or not. In making this analysis, pay particular attention not only to interest rate mode and spread, but also to the payment term. Given this date, make a fair comparison with all the offers on the market, as many financial institutions are currently spreading below 2%, so the transfer may indeed compensate you. To make this comparison, it is mainly based on the Annual Effective Rate (TAE), which represents the annual cost of credit and comprises all credit burdens.
Compare Credit Transfer Costs
As you look at the options you have, also consider the transfer costs you will have at each bank. Currently some banks assume these costs and do not need to pay anything for the transfer. If you have to assume the costs, be aware that they can be very significant and that you should always consider them to make the final decision. It should also be aware of the transfer fee rules, which state that costs can only be up to 0.5% of the value of the capital to be transferred, for variable rate credit, up to 2% for capital. of fixed rate loans.
Request credit transfer
Once you have thoroughly analyzed your situation and decided that you will transfer the credit, it is time to request the transfer. Then you must communicate your intention to the bank that you have chosen to transfer the credit to and submit all necessary documentation (ID, last IRS statement, last three pay slips, proof of address and IBAN …). After you submit this request and submit a proposal, you are given 30 days to reflect before committing to this new loan and can only accept it 7 days after its receipt.
Inform current bank
Once you have approved the transfer you wish to make, you should inform the financial institution that currently holds your credit. You must issue this notice at least 10 days in advance and only after this time can your process proceed.
Finish the transfer
Finally, you must wait a maximum of 10 business days for the bank that has hired to complete the transfer. So that there are no delays and you can start enjoying the savings you will get, provide all the necessary information and documentation so that the bank begins the transfer as soon as possible.
In this process, sometimes the most difficult thing is to analyze the various proposals and find a credit transfer that will effectively save you money. Avoid mistakes and concerns by relying on the knowledge and experience of Goodright Credit experts. Talk to us today and see how you can save you from euros a year on your home loan.