As a borrower, you are free to make a credit check whenever you want. This can happen after the sale of your home, or through a cash receipt or when you want to consolidate your credits with a buy back credit. Depending on the credit: mortgage or consumer credit, the repayment of the credit can lead to a prepayment penalty.
Penalties due during a credit refund
For the Mortgage or Housing Loan
For these loans, including work loans, a penalty of 3% of the outstanding principal or 6 months of interest must be paid on the amount reimbursed in advance. This is the smallest of these two sums that will be required by the bank. You will find the outstanding capital on the amortization table. Note, on some offers of mortgage, the prepayment penalty may be zero following negotiation at the time of the loan application.
For credits subscribed after June 25, 1999, no compensation is payable if the repayment of the credit follows the sale of the property (because of change of workplace, death or forced cessation of professional activity. the borrower or his spouse). The credit guide specifies all the conditions.
For personal loans and credits
Since the Lagarde law, no penalty is due for all amounts below USD 10,000 over a period of 12 months. If the amount refunded is more than USD 10,000 in less than 12 months, the penalty is 1% (or 0.5% when the loan ends in less than one year). Revolving credits have no penalty for early repayment.
Consolidate your loans requires repayment of all credits?
No. We try as much as possible to keep interesting credits (zero rate or low rate or the credit of your home). It all depends on your ability to repay. In the credit pool, an online simulation will tell you the new monthly payment with all credits taken. We can do another credit simulation by keeping the mortgage and the zero interest loan for example.
The purchase of credit for seniors requires taking into account the borrower insurance which increases more ahead in age. That’s why the loan simulation for retirees requires you to include the monthly cost of insurance.
Before proceeding to repay all credits, it is very important to see the APR of each and appreciate the interest of the repayment or not of each credit.