Perhaps, you are trying to start from scratch with a new bank , get benefits and forget about difficult times requesting a credit transfer. Cool. Let me give you some advice.
Many things can happen during the term of a mortgage loan. Difficult moments. A bad business, changes in family structure, a disease, loss of employment. Situations that have forced us to stop paying the monthly debt installment . Of course, we are always looking for solutions. Will a mortgage loan transfer be a good idea in these cases?
As a mortgage loan broker I have good experiences in transfers. I will tell you when they work and when they don’t. Let us begin.
When is it a good idea to ask for a mortgage transfer?
I always ask my clients to remember that credit is a living business, susceptible to changes. During the life of the credit, circumstances may arise that can improve the business and offer you significant savings. It almost always occurs when the interest rate is lower than the one approved in the initial credit .
This happens due to several factors:
1. The conditions of the country have changed and banks can lend cheaper than before;
2. The conditions of the financial system have changed and there is greater competition among banks ;
3. The conditions of the borrower have changed and have better negotiating arguments.
S in any of this scenario, it is a real pleasure to study each case and see what options you have and what bank will be your best choice.
What ensures that I will have a better rate with a mortgage transfer?
When is it not a good idea to request a mortgage transfer?
H ay situations where it is not a good idea to request a transfer. This operation requires time to organize the documents and generates a good dose of adrenaline. It is best to check if you are in this s c nyone just before making the request:
- You have many debts .
You use almost all the credit card quota, you have another debt with a box and a credit with which you bought a new vehicle. You pay them all, you don’t even know how, but you don’t have a free sun. Perhaps, it is better to wait until you release your debt quota a bit and improve your prospects as a low-risk customer.
- By chance, have you breached your commitments? Are you reported in the Risk Center?
This is not a good time to request a transfer. The transfer does not resolve these situations. Why? Let’s go back to the beginning. A transfer is requested to improve business conditions. If the bank evaluates that you are a high-risk customer , it could offer you a higher rate than what you have today, that is, you would end up paying a higher fee and a more expensive credit. Who wants that? Even worse, the bank will most likely reject your transfer if you are reported to the risk centers.
If this is your case, my recommendation is simple. Organize your expenses, refinance your debt with your bank and start clearing your credit history. Pay your fees fully and in a few months you will be able to think again about a transfer of your credit.