Ensuring that you will have a better rate with a mortgage portfolio purchase is not that difficult. Just ask a couple of key questions. For your answers I will know if you will pay less money for your loan.
Rates fluctuate. Sometimes, money is more expensive. After, less expensive. They are normal economic cycles everywhere . It is likely that you would have obtained the mortgage loan just when rates were at the top of the wave of the business cycle. As also, it is likely that you decided to take a loan to pay for your home and would have benefited from some government incentive to grow the economy. Do you want to know how are the possibilities of improving the rate of your mortgage loan ? These are the questions.
First question: When did you take the credit?
The interest rates with which banks lend to their clients depend largely on the Bank of the Republic, this entity has the mission of regulating, among other factors, inflation and therefore “moves” the rate up or down. The average interest rate of banks at the end of March in the consumer portfolio was 19.78% annual cash and the credit card at the same cut was 31.24%. For VIS housing loans, the average rate is 12.97%. For Asobancaria, at the end of the year the gross portfolio will have grown 7% with all components, with the exception of commercial and microcredit, in slowdown.
Is this your case? Look at your payment schedule. Observe and compare interest rates for annual effective VIS and Non-VIS housing loans, with figures as of March 31 of this year: Let’s read a little about (TEA and TCEA)
Second question: With what type of entity did you take the mortgage loan?
In our country there are different types of companies authorized to raise and lend money. Municipal savings banks, savings and credit banks, and banks can lend and mortgage. According to their characteristics, their administrative skills and business models, financial institutions can lend cheaper or more expensive.
According to the Bank of the Republic of Colombia, the variation between these entities in the last eight years looked at the beginning of this year as follows:
The variation in credit rates depends on many factors. A supermarket with the strategy of conquering many customers will make efforts to maintain good prices, good level of service, good inventory, special schedules and high variety of products. A financial entity will evaluate the cost of providing the service and adjust its prices, the value to lend and raise money, that is, the fees. It is a free competition that must respond to the signals emitted by the Bank of the Republic.
Third question: What type of mortgage credit did you take?
Sometimes, the government approves incentives to stimulate the economy. Special programs to acquire housing, such as Mi Casa Ya or Semillero de Propietario s, have special rates or conditions. Many times it is complicated and unattractive for banks to accept the purchase of mortgage loans of this type.
Fourth question: How is your level of risk?
Each entity has its method, its credit policies. We do not know them in detail. But we do know that the evaluated. And it is very important. When you took the loan, you were in an equal, better or worse the economic situation today? I give you some clues:
- Work stability: the ideal is to show permanence of at least one year in the same company, but you can still work with shorter periods of permanence.
- Indebtedness: the use of 100% of the quota of your cards plus other credits, for example, for the purchase of a car or a trip, can affect your risk rating.
- Compliance: failure to comply with financial commitments affects the rating. Not paying credit cards, loans, or being reported to the Risk Center on time are obstacles to obtaining a better rate with a mortgage purchase.
Fifth question: Have you modified your marital status?
The family situation is an important variable. Family expenses are not the same if you live in your parents’ house, become independent or have a marital partnership.
Did you get married and your partner can have a good qualification to take a loan? It is a good reason to evaluate a purchase of your mortgage loan portfolio.
In conclusion, the possibilities of obtaining a better rate with a purchase of mortgage portfolio are varied. Our recommendation as a broker is to stay alert. Maybe it is time to start the steps to buy a wallet and save a good amount of money.