How do I renegotiate or get my mortgage back?

Verified 31 January 2022 - Directorate for Legal and Administrative Information (Prime Minister)

You can renegotiate your mortgage with your bank to get more favorable borrowing terms when interest rates drop.

If you decide to renegotiate your credit with another financial institution, then we are talking about repurchase of mortgage.

Renegotiation

You can renegotiate your mortgage with the bank that gave it to you.

If the bank accepts your request, you will be able to get better loan terms with a interest rate lower than originally.

That can translate 

  • either by lower monthly borrowing payments (the amount to be repaid each month is lower),
  • or a shorter repayment term (fewer repayments to be made).

This amendment to the contract must be mentioned in a agreeable to the original loan agreement.

But renegotiating your home loan can incur costs:

  • The bank may ask you for contract amendment fee in exchange for studying your application and setting up the credit.
  • When your loan is secured by a mortgage, the result of the renegotiation (change in the interest rate or repayment term of the loan) must be recorded in the property advertising service by your notary.
Who shall I contact

The content of the rider depends on the nature of the mortgage.

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Addendum for a fixed-rate loan

The amendment includes:

  • A schedule of depreciation detailing for each maturity the principal outstanding in the event of early redemption
  • The annual percentage rate of charge (APR) and the cost of credit based solely on future charges and maturities

Amendment for a variable rate loan

The amendment includes:

  • A schedule detailing for each maturity the principal amount outstanding in the event of early redemption
  • The annual percentage rate of charge (APR) and the cost of credit, calculated on the basis of the charges and maturities to be paid up to the date of revision of the interest rate
  • The conditions and methods for changing the interest rate

The bank must send you the addendum:

  • Or by letter, the postmark being authentic.
  • Or by any other means. This means must be agreed between you and the bank. It should make it possible to make certain the date of your acceptance.

Regardless of the type of loan you want to take out, you have an incompressible cooling off period of 10 days, from the receipt of the amendment to accept or reject it.

To accept the amendment, you must sign it and then send it to your bank after the 10-day deadline.

To refuse it, simply do not send it to the bank.

Redemption

You can have your credit repurchased by a new financial institution (bank or financing business), different from the original lender.

You will need to sign a new loan agreement.

In general, you will be charged the following:

Please note

for the new loan, the new lender may require you to take a new loan borrower insurance.

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