Mensualité Prêt Immobilier

Home Loan: When is the first monthly payment due?

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When does the mortgage payment begin?

According to the rule, when you purchase a property whose financing is provided with a mortgage, the amount borrowed begins to be repaid The month following the release of funds When signing the deed of sale, or after a period 30 days at least. But there may be another factor, because at the time of obtaining your loan contract, the date on which, each month, you will pay your installments is fixed, generally between the 1st and 10th of the month. To coincide with the payment of your salary and allow you to incur this deduction.

This can affect The date of the first monthly payment As you will see below.

The date of the first monthly payment

If you have subscribed to A depreciable fixed rate loanMost commonly, the date of your first payment may vary depending on when the funds were released and the exact date your monthly payments are settled. Since the 30-day rule must be applied, two scenarios may arise:

  • Case 1: Imagine that you signed the deed of sale on the 2nd of January and that the date set for your monthly payments is the 5th of each month. You will then pay your first monthly payment on February 5th, and the 30 day period will then be largely respected.
  • Case 2: Imagine that you signed the deed of sale on the 10th of January and the date set for your monthly payments is the 5th of every month. You would then only make your first monthly payment on March 5th to be able to meet the 30-day deadline, which a February 5th payment would not allow. Unfortunately, this won’t be without affecting your first monthly payment, as it will be adjusted by adding the temporary interest.

Understand Infill Fees

upon your signature Real estate loan contractthe bank should have provided you with consumption table which shows the monthly payment date, amount of monthly payments, annual percentage rate, remaining principal due, interest and the amount earmarked for insurance. But when you make your first monthly payment, you may find it’s higher than you expected. It’s because add overlays, Also called temporary interest, which you have to pay if you find yourself in the situation of Situation 2 described above.

These costs correspond to the remaining interest accrued due to the delay in repayment of the monthly installment compared to what was saved in the amortization schedule. If we take the example of the situation presented in Case 2, this amount will be calculated for the period from the signing of the bill of sale, i.e. 10th January, to the date 5th February, which was due for the first monthly payment.

This is not an additional fee, but a Catch up on your premium payments, to then be able to refer to the monthly payments stated in the amortization schedule. From one bank to another, the calculation of temporary interest is different. That is why it is important to check with the lender to find out exactly what will happen if you cannot go to the notary at least 30 days before the date of the first monthly payment.

Mortgage loan in case of old purchase with or without renewal

If you buy an old property, be it a house or an apartment, two scenarios may arise:

  • You have no work to do The bank will release the purchase price of the property in full on the day the bond is signed with the notary or, ideally, a day or two to ensure funds are available on D-Day. As explained above, the 30-day rule applies, which means your first monthly payment may be more and more late.
  • You have work to do In general, a business does not fall under a mortgage loan. But, with the lender’s approval and when an estimate is given, it’s sometimes possible to include the amount of the business in your mortgage, allowing you to have just one loan to pay off and utilize at a more attractive rate. Regarding the first monthly payment, whether or not you can live in the accommodation being renovated, the rule of thirty days after the date of signing the Deed of Sale will apply.

A mortgage in the event of a property under construction or as part of a VEFA purchase

If you have purchased a property that you cannot move into immediately because it is still under construction, for example, the money will be released in installments. Depending on the progress of work According to a percentage determined by law. For example, in the case of a file VEFA : 5% upon signing the reservation contract, 30% upon completion of the foundations, 35% upon installation of the roof or waterproofing, 25% upon completion of the works, and 5% upon return of the keys.

during this period of release of funds, you will have to pay insurance and temporary interest, which is called a partial deduction. When the funds are released, the amount to be paid will be higher and once the keys are returned, you will make your first real monthly payment.

Total discount

beyond this for partial deductionIn some cases, the lender may give you for full discount. This means that it can allow you to take full advantage of late payment, that is, not paying interest during the period of release of funds. But beware, this is not a gift! The intermediate fee calculated from the first issue of funds must either be paid upon handing over the keys, or will be paid It is reflected in the total amount of the loan.

This solution is certainly expensive, but it can be useful to avoid having to pay rent and monthly compensation simultaneously. These are terms that must be negotiated with your bank either directly or through an intermediary, depending on what is more appropriate to your situation.

How to reduce temporary costs?

Here’s what you can do to limit expenses related to interim interest and thus lower the cost of a VEFA loan or property purchase to be renovated:

  • If you have the possibility Make a contribution of more than 5% of the property price, which covers escrow costs and notary fees, you will be able to use this money to delay the release of the loan. This gives you a period of time before interest is generated.
  • Another solution is to start Liberation of the loan at the lowest rate. In fact, for businesses, it is possible to make use of a zero rate loan which will limit temporary costs.

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