What are the costs of buying back loans?

When setting up a repurchase of loan, many costs come into play. In addition to the interest and loan amount, there are mandatory fees, schedules and reimbursement fees. We detail all fees related to the loan redemption in this article.

Brokerage fees

In order to find a good lending institution, going through a loan repurchase broker is often essential. However, he will ask you for a commission. It usually amounts to between 4% and 6% of the total loan. The value often depends on the difficulty of the file.

Mortgage or surety fees

If to guarantee your loan, you choose to make a mortgage on your property, you must pay the land tax. Its amount is of the order of 0.60% of the amount borrowed. Payment is made at the Mortgage Department of the Tax Center.

For a deposit, a third party agrees and no fees are payable. However, in the case of a bonding organization, the fees are between 2% and 3% of the loan amount.

The amount to be paid to the surety agency

The amount due to an institution that guarantees your loan includes a final commission and a contribution to a mutual guarantee fund. At the expiry of

Optional unemployment insurance fees

Unemployment insurance is an optional option and covers against job loss. Monthly payments are paid by the insurance if the case arises. The value of this insurance is calculated on the basis of the initial amount of the loan or the amounts of the monthly payments.