Skip to content
Sandy MASCART Your mortgage in Lyon
Open my file
+33 6 37 98 81 25
Menu Close

Translation of an article written and signed in French by Sandy MASCART, for information. Only the French version is authoritative. Read the French page

Mortgage basics

Bank rate scale: why the displayed rate is not yours, and how to aim for the best line

Grid by term, discounts, counterparties, insurance: read a bank rate scale as the bank does and identify what brings you closer to the best line.

The rate displayed by a bank is the best cell in its rate scale: the shortest term, the strongest profile, accepted insurance and counterparties. The rate proposed to a borrower is another line in the same grid, depending on their term, their income and the discounts granted. Reducing the requested term and retaining savings after the transaction are among the most effective levers to get closer to it.

By , mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)

Updated on Published on 4 min read

Dining room of a house in Vermont, with a wooden table surrounded by chairs, a carved sideboard, a brick fireplace and a door open to the light.

Key points

  • A bank rate scale is a grid where the loan term intersects with the income profile, each cell bearing a rate before discounts.
  • The displayed rate corresponds to the best line of the rate scale: short term, strong profile, accepted counterparties, not the rate actually proposed.
  • A counterparty granted in exchange for a discount has an annual cost that can exceed the savings provided, especially for group insurance.
  • Two banks apply different lending policies depending on the moment: the same file does not occupy the same line of the grid everywhere.
  • Reducing the requested term and retaining residual savings are among the most effective levers to obtain a better line.

The rate displayed by a bank is the best cell in its grid: short term, solid profile, accepted counterparties. Yours is a different row in the same table: learn to read it to aim for the right one. This is one of the basic rules of a mortgage.

How is a bank rate scale constructed?

A grid: the term in columns, the profile or income in rows. Each cell carries a base rate, followed by discounts and surcharges decided by the branch, the region or the head office.

  • It is dated and revisable, often every month. Only the loan offer fixes the conditions.
  • The rate rises with the term: extending it to lower the instalment costs twice.
  • The profile rows measure risk and profitability, not your merit.

The four levels between the displayed rate and yours

  1. The rate scale row: published, non-negotiable.
  2. The profile discount: stability, retained savings, jump in debt-to-income ratio, length of service.
  3. The commercial discount, in exchange for products that have a price.
  4. The fees and the guarantee: apart from the nominal rate, they change the APR.

Two banks, two rates for the same file

Rate scales and lending policies differ: income taken into account, weighted charges, target clientele. The same file does not occupy the same row at one or the other.

The most underestimated factor: the current commercial policy, which changes from one quarter to the next. See intermediary or bank direct, the families of lenders and two banks, two responses.

What does a discount really cost?

A counterparty (account, savings, insurance, means of payment) can cost more per year than the discount saves.

Calculate the savings from the discount over the entire term, then the cost of the products imposed over their actual duration, and compare. The most expensive is often the borrower insurance from the group.

Méthode de calcul du taux annuel effectif de l'assurance

La différence entre deux taux annuels effectifs globaux : l'un calculé en supposant l'assurance intégralement exigée par le prêteur, l'autre en supposant qu'aucune assurance n'est exigée

Le taux annuel effectif de l'assurance est le seul indicateur qui rende deux assurances comparables.

En vigueur depuis le
Source
Article R. 314-12 du code de la consommation — Légifrance

Compare the total cost in euros, not the first month's premium.

What an advertisement announcing a rate must display

The identity of the lender or the intermediary, the nature and purpose of the loan; and, as soon as a rate appears, clear and visible supplementary information.

8 ()
What the text requires When Source
Identity of the lender or the intermediary, nature and purpose of the loan Always identité du prêteur ou de l’intermédiaire de crédit + nature et objet du prêt ; si la publicité comporte un taux d’intérêt ou des chiffres sur le coût du crédit, informations complémentaires claires, concises et visibles, le cas échéant à l’aide d’un exemple représentatif ()
Supplementary information, where appropriate using a representative example As soon as a rate or a cost figure appears
Liste des informations complémentaires en publicité de crédit immobilier
  • taux débiteur et sa nature fixe, variable ou révisable, ou une combinaison des deux, et informations sur tous les frais compris dans le coût total du crédit
  • montant total du crédit
  • taux annuel effectif global (TAEG) mentionné à l’article L. 314-3 ; lorsqu’un service accessoire obligatoire, notamment une assurance, a un coût non déterminable à l’avance, l’obligation de conclure ce contrat est mentionnée avec le TAEG
  • durée du contrat de crédit
  • montant total dû par l’emprunteur
  • montant et nombre des échéances
  • le cas échéant, un avertissement relatif aux éventuelles fluctuations du taux de change susceptibles de modifier le montant dû par l’emprunteur
  • le cas échéant, le fait que le contrat sera garanti par une hypothèque ou une autre sûreté comparable ou par un droit lié à un bien immobilier à usage d’habitation
En vigueur depuis le
Source
Article R. 313-1 du code de la consommation — Légifrance
Number of pieces of information due As soon as a rate or a cost figure appears 8 ()

A rate without this information is bait, not an offer. The rates page displays a value only if it is dated and sourced. For comparison: the FISE.

You are being offered a higher rate than the displayed rate: why?

Your application falls into a different category: a longer term, a different income bracket, or a discount refused due to a lack of counterparty conditions.

  1. Which rate scale category was applied?
  2. Which discounts were granted, and which were refused, and for what reason?
  3. What counterparty conditions are assumed in the rate?

Also check the insurance selected and the date of the rate. Do not pay for an expensive counterparty condition for a few basis points.

Aiming for the best category in the rate scale

  1. Reduce the term, which changes the column.
  2. Retain savings after the transaction.
  3. Delegate the insurance, with equivalent guarantees.
  4. Present clean accounts for the last few months.
  5. Document atypical income over three accounting periods.
  6. Compare the total cost: fees, guarantee, insurance.

To go further: read the rates, the usury rate, the barometer, the account domiciliation and when rates will fall.

Have your proposal analysed by telephone before signing.

Create your application and aim for the correct category in the rate scale.

Sources

Read next

All articles on this topic: Mortgage basics

Your loan and your purchase

Mandatory legal information, in French:

L’emprunteur dispose d’un délai de réflexion de dix jours ; la vente est subordonnée à l’obtention du prêt ; si le prêt n’est pas obtenu, le vendeur doit rembourser les sommes versées.

Your file

Your mortgage starts here

Your answers, your documents, and I handle the banks.

Open my file Call +33 6 37 98 81 25

Your client area is in French.