A mortgage is a long-term commitment to many, and without it, they would not have the means to purchase a property. The alternative is to rent and save as long as possible, but due to the size of the purchase price, this is very rarely possible. Mortgage loans are therefore an institution across the world and millions of bank customers make use of it. BNP Paribas Mortgages offers clients a variety of different options, which highlights the fact that needs differ from individual to individual. This review takes a look to see whether they meet these needs.
Standard Bank also offers a good mortgage range. The full review also happens to be available.
About BNP Paribas
As one of the largest banks in the world, BNP Paribas is proudly French. The founding date varies as the bank stems from many other banks, the earliest traces back to around 1932. A large asset holding on the balance sheet makes this a competitive opponent in the banking world. Great customers reviews and a superb product selection are the works of decades of research. Although there are many competitors in France alone, this bank seems to draw a decent market share.
Helpful Tips Before Applying for Mortgage Finance
This is an important step in any consumer’s journey, especially if this is the first application. Mortgages are usually long-term commitments and consumers don’t always understand the implications of finance. Discover some of the things to look out for when applying for a mortgage loan.
Choose An Option That Suits the Budget
It’s important for potential homeowners not to extend themselves too far by applying for a loan that is absolutely at the maximum of their budgets. This is because home ownership comes with a whole load of other responsibilities as well that could eat into the finances over and above the mortgage installment.
Find Out About Special Government Initiatives and Offers
In certain countries, the government assists especially first-time homebuyers with their property purchases. This could be in a top-up to their savings or even an interest reduction. The deals are negotiated with the banks in order to stimulate the property market and allow consumers to build assets as opposed to renting forever.
Save More Than Just the Deposit or Downpayment
In many instances, banks only fund the actual property price and sometimes not the entire purchase. This would require property purchasers to fork out extra cash as a deposit. There are also other fees to consider, such as additional charges with a special valuation and attorney or conveyancing costs.
Those who want to save up for their down payment should consider the options offered by BNP Paribas.
BNP Paribas Mortgages Product Offerings
Fixed-Rate Mortgage Loan
This loan type is the ideal choice for those who don’t want to be affected by changing market conditions. Furthermore, customers benefit from the knowledge that their installment remains the same for the remainder of the term.
- Customers save up to 50% on their application fees if they complete their applications online.
- The loan type allows customers access to a mortgage specialist to determine whether this is the best option for them.
- Furthermore, the specialist will provide support in under 48 hours.
- Finally, customers may suspend or modify their loan payments at any time according to their budgetary needs.
Adjustable-Rate Mortgage Loan
With this loan option, customers may enjoy a lower rate should the markets be in their favor. There is also the slight possibility that they may have to pay higher installments if the interest rate goes up.
- Customers who complete their applications online receive a 50% discount on their application fees.
- There is some peace of mind with the rate, as there is no limit how low it can go but there is a cap on how high it may go.
- Furthermore, customers receive support from a specialist within 48 hours and they will work through the needs and requirements for the best mortgage plan.
- Finally, the repayments are flexible and customers may suspend or modify their payments at their request.
The ideal solution for those who wish to purchase an additional property. This loan is also suitable to those who wish to make renovations to their existing property, especially before the sale of a previous property is finalized.
- Customers finally have an interim solution when they experience a delay in selling their current home.
- Furthermore, the loan conditions include the property’s sale net price to determine the cost of the loan. Also, whether or not a preliminary sales agreement has been signed.
- Finally, customers have the option to repay the loan early without the hassle of early settlement fees.
This loan payment is for those who have a lump sum available, but perhaps at a future date. Furthermore, there is only one installment payment.
- The ideal solution for customers looking to purchase new or existing rental housing.
- This is an interest-only loan.
- Also, this loan type is often paired with life cover given as consideration for the loan.
- Finally, customers may receive certain tax benefits.
Acquisition Bridge Loan
Customers who experience a lag between the purchase of their new property and the sale of their old one will find this loan helpful. This is a single loan that includes all the installments for all their loans.
This is the ideal option for those looking to purchase their first home. Furthermore, there is no interest when purchasing or constructing a home. Customers may also purchase an old property should it require renovation work for an amount of at least 25% of the total amount of the operation. Finally, there are also no application fees on this loan.
Zero-Interest Green Loan
Customers who wish to upgrade their homes to more energy-efficient standards will find his loan type suitable. Furthermore, there is no interest payable on this loan.
- This loan charges no application fees.
- Only on zero-interest green loan may be applied for per home, regardless of the loan amount provided.
- There is a fairly high limit on this loan type and loan amounts can go up to EUR 30,000.
- Finally, customers may repay their loans in advance without paying penalties.
Home Ownership Savings Plan Loan
This loan type allows customers to finance up to 100% of the total cost of their home. Furthermore, the loan amount is up to EUR 92,000.
- Customers who have borrowing rights in terms of saving in a PEL may apply for this loan.
- Also, the amount of the PEL loan is determined on the basis of the interest accrued during that savings period.
- Furthermore, family members may transfer their borrowing rights to the applicant.
- There is also an added premium of EUR 1,144 allocated to the PEL loan. Another EUR 525 is possible if the property meets sustainable development standards.
- Finally, the repayments are fairly flexible and customers may suspend or modify their repayments to suit their budget.
Home Ownership Savings Account Loan
Customers receive a preferential rate to purchase real estate with this loan type. Furthermore, the loan amount is up to EUR 23,000.
- There is the benefit of a savings premium paid by the government with this loan.
- The loan type is reserved for holders of borrowing rights. They needed to have saved in a CEL for at least 18 months before applying for the loan.
- Furthermore, the loan flexibility allows clients to suspend or modify their payments during the term.
- Finally, there is a government premium of EUR 1,144 added at the end of the savings period if a loan is obtained as a result of the CEL. Customers may have tax benefits but are still liable for social security debits.
Consumer loans are also options for consumers and BNP Paribas has them in full supply.
Regulated Mortgage Loans
Classic Loan and State-Subsidized Loan
These loan types are regulated mortgage loans designed for the purchase or construction of the primary residence.
- Customers receive 50% discount on their application fee.
- The loans can also be used to finance works in a principal residence.
- Finally, customers have the option to make additional payments or settle their loans without the hassle of paying early settlement penalties.
Critical Reviews Rating BNP Paribas Mortgages – 10 of 10
One of the first things we noticed when doing this review was the sheer range of options. BNP Paribas invests time and effort to provide their customers with sufficient information upfront in order to make the right decision. Another feather in their cap would be the attention to client-friendly jargon, instead of inundating customers with bank jargon. They bring their information to the table in an easy-to-understand language without missing out on all the important information.
Another aspect we like about this range is that there is something for everyone. It provides consumers with a varied range that will undoubtedly cover a number of needs. Whether this is for the first-time buyer or those looking to invest in multiple properties.
Finally, another gem we discovered in this range is the fact that the fees are quite low. This not only refers to the penalty fees but also the fact that some of the options don’t charge customers penalty interest on early settlement. This is a well-balanced range that clearly has the customer in mind and we’re happy to score it a perfect rating.
Find out how the BNP Paribas range compares to mortgages offered by rival French bank, Credit Agricole.