Redemption of credit without expenses of file: is it possible?

More and more households are using credit redemption to rebalance their budgets. As part of this operation, some fees are mandatory but can be minimized. Criticism at

As with any banking operation, the repurchase of credit entails the payment of processing fees that are paid to the bank or broker offering the new loan. Can we set up a credit redemption without a file fee? Answers.

What are the costs of buying back credit?

What are the costs of buying back credit?

Credit redemption allows a borrower to consolidate credit into one at a lower rate, which is repayable over a longer period. Several fees can inflate the cost of the operation:

Early repayment benefits (IRAs)

Your loan agreement probably provides for IRAs. These penalties can be reduced or canceled by negotiation. In any case, they can not exceed 6 months of interest on the capital repaid at the average loan rate and 3% of the capital remaining due before repayment.

Costs related to the guarantee

As with any home loan, the bank requires guarantees in principle. When the borrower owns his home, the bank can take out a mortgage. This procedure, requiring the intervention of a notary, generates registration fees. The brokers estimate that the total of these costs represents approximately 1% of the outstanding capital.

Borrowers who are not homeowners can opt for bonding through an internal organization within the banking group.

The borrower insurance

If you wish to resort to the credit redemption, you will have to subscribe a borrower insurance. In case of health problem, it is the insurer who will take over in the repayment of the monthly payments. To save on loan insurance, do not hesitate to play the delegation of insurance. Indeed, since 2010 and the entry into force of the Lagarde law, you can purchase individual loan insurance if it includes guarantees at least equivalent to the group contract.

Credit Redemption: Zoom on the fees

Credit Redemption: Zoom on the fees

The new lending institution can claim fees that usually vary between 300 and 500 USD, according to the signs. They remunerate the banking organization for its work analyzing the file. In practice, the application fees provided for a credit surrender can be negotiated according to the profile of the borrower.

It should be noted that these fees are only charged in the event of acceptance of your request for credit redemption. Thus, a simple feasibility study with a bank or a broker can not involve the application of fees.

You want to determine what will be the cost of your credit surrender? Feel free to use a free online simulator. After completing a quick form, you will get an estimate of the amount of your future monthly payments and will be able to evaluate the interest of such an operation.