Reminder of what is a credit buyback
The repurchase of credits consists in regrouping all your current loans with only one financial institution, which replaces them by a new single loan. You therefore only have one monthly payment to pay, and thanks to an extension of the repayment period, you significantly reduce the amount of each installment. This increasingly common financial arrangement is also called grouping or consolidation of loans , or debt restructuring.
Note: we will not discuss on this page the subject of the repurchase of mortgage by another banking establishment . In this case, the borrower’s objective is special: he wants to lower the total cost of his credit by finding a lower interest rate. His objective is not linked to the express search for lower monthly payments – even if it can happen to him all the same: the reduction in his monthly debt ratio is secondary to his desire to reduce the total cost of credit or decrease the term of the new loan to be implemented.
When you plan to redeem your credits , the main criterion is your debt ratio. This is the part devoted to your expenses (including monthly repayment) compared to your overall income. This post-transaction rate must remain below 42% for your request to be accepted. In addition, you must have a minimum living amount of $ 1000 monthly.
Why do a loan buyback simulation
To alleviate your monthly payments by grouping your debts, the credit repurchase simulation allows you to know the amount of your future monthly payment. This is a key step prior to any approach with a bank or a financial organization. You can just consolidate your existing loans or take the opportunity to include additional credit.
This simulation service is 100% free, no registration required and no obligation. Once all the information has been provided, several results are displayed. All you have to do is select the amount of monthly payment that best suits your constraints, especially budgetary. Your request can then be made entirely online, or sent to us by email.
Advisors are also available to assist you with your procedures and help you build a solid file in order to maximize your chances of obtaining satisfaction from the lender.
How does a simulation work?
The credit buyout simulation allows you to visualize the gain you can expect from such a financial arrangement. By selecting an extended amortization period, you immediately see the estimated amount of your new monthly payment. You can carry out as many simulations as necessary by modulating the duration of engagement.
If you want to redeem only a consumer loan, the proposed duration generally varies between 5 and 12 years. If a mortgage is included in the calculation, the repayment can be staggered up to 35 years.
If the monthly payment indicated by the simulator is still too heavy for your budget, try a longer duration, the amount of each installment automatically decreases.
To obtain a more precise and detailed proposal, a form is available to you with the loan buyback calculator . The information you provide will allow an advisor to provide you with a quick response tailored to your needs.
What information do you need to provide?
To carry out a simulation of grouping of credits , you must enter the amount of capital currently due and select a repayment period. The corresponding monthly payment amount and the total cost of the loan are then displayed.
If you opt for a simple restructuring, the repayment term of your consolidated loan is extended. However, you have the option of not changing your commitment period if you wish to take out an additional loan. In both cases, the new Annual Total Effective Rate (APR) will be clearly indicated with the conditions of your new contract.