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To benefit from a higher rate and thus reduce your monthly payments or the repayment term of your mortgage, you can buy it back by another bank.

Redeeming your credit with another organization

If the terms of repayment of your mortgage are not advantageous, because of lower borrowing rates for example, you can first try to renegotiate your credit with your bank. If renegotiation is not possible, you can contact other bank branches to redeem your credit.

If a new bank buys your credit, you will have to change your bank and repay your credit with this new bank. You can benefit from reduced monthly payments, or decrease the repayment term of the credit. Your debt ratio will be more reasonable and you will find more purchasing power.

The credit redemption gives rise to a new contract. It's as if you are starting the process of obtaining a loan. On the other hand, the renegotiation of the loan with your bank gives rise to an amendment to the initial contract.

Attention, the repurchase of your mortgage will give rise to prepayment benefits to settle at your current bank, and at the expense of file for the opening of the contract in your new bank. This is to calculate if the repurchase of credit is really an interesting solution in your case. You can ask a broker for advice.

Credit consolidation

If you have several outstanding loans (mortgage, car loan, etc.), you can go through a credit consolidation organization. It's a financial solution that allows you to group all your refunds in one monthly payment. In general, the amount of monthly payments is lightened, and the management of your finances is simplified. You can also consider a credit consolidation with the addition of cash to finance a new project (works, swimming pool...).

Video Instruction: Mortgage Repurchase Defense