Lenders, panel and loan offer · Guide
Understanding your loan offer: the twelve clauses to check before signing
The twelve clauses of the loan offer, in the order of the document: what is negotiable, what the law caps, and the three points that cannot be rectified.
The loan offer is the only document that binds the lender: once accepted, it becomes the contract, and what is not included in it has not been promised. It must be read clause by clause: parties, subject matter, amount, term and deferral, nominal interest rate, APR, fees, guarantee, insurance, release of funds, early repayment, general terms. Almost nothing can be modified after acceptance, with the exception of insurance.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The loan offer is the only document in the process that truly binds the lender: what is not included in it has not been promised.
- The annual percentage rate of charge integrates the nominal interest rate, fees, guarantee and mandatory insurance; comparing on the nominal interest rate alone compares nothing.
- Almost none of the twelve clauses can be modified after acceptance; borrower insurance is the exception, by substitution: everything must be checked before signing.
- The early repayment clause allows the lender to demand immediate repayment of the capital; it deserves a complete reading, once.
- Insurance premiums, an unrequested deferral and the early repayment clause are the three points that cannot be rectified after signature.
The loan offer becomes your contract: anything not included in it has not been promised. Read its twelve clauses in order, with your file open beside you. The complete journey is in lenders, panel and loan offer.
How much time do you have to read, exactly?
A non-negotiable cooling-off period begins upon receipt: it is impossible to accept before its expiry. The lender remains bound by its conditions for a separate minimum duration.
- Délai de réflexion de l'emprunteur 10 jours
- Maintien minimal des conditions de l'offre 30 jours
Le délai de réflexion est incompressible : la réception compte comme point de départ, et l'acceptation ne peut intervenir qu'après son terme. La durée de maintien des conditions court, elle aussi, à compter de la réception.
- En vigueur depuis le
- Source
- Article L. 313-34 du code de la consommation — Légifrance
Countdown and reset: the cooling-off period.
Clause 1 — Parties and guarantees: who is truly committing
- Verify names, dates of birth, address and account. An error causes the offer to be reissued, and the period restarts.
- Verify who is the borrower. A couple in a single name does not have the structure they believe.
- A personal guarantor has the same period as you.
Clause 2 — Nature and purpose of the loan: the regime that follows you
The declared purpose (acquisition, works, repayment of a balance…) fixes the guarantee and the conditions of a regulated loan. It must match your actual use.
Several loan lines? Read each amortisation table. The line structure is negotiable: it is often the most effective lever.
Clause 3 — The amount: what it finances, what remains to be paid
Compare it line by line with the approved funding plan. Any discrepancy becomes a cash requirement on the day of the deed. Also verify the retained contribution. The useful documents: documents to gather.
Clause 4 — Term and deferral: the hidden cost of the repayment schedule
Refuse any amortisation deferral that you have not requested: the instalment falls, the cost rises. In off-plan purchases, see calls for funds and interim interest.
In the repayment schedule, read the outstanding capital on the date you intend to sell.
Clause 5 — The interest rate: fixed, or what may change
If it is variable, read the index, the frequency, the cap and what adjusts: the instalment, the term, or both. A cap only protects what it specifies. Negotiate it before the document is drafted, as well as the rate.
Clause 6 — The annual percentage rate of charge, the only basis for comparison
It includes the interest rate, processing fees, guarantees, intermediary fees and mandatory insurance, but not deed fees. It is the only basis for comparing two loan offers.
Taux annuel effectif global
Un document qui écrit encore « taux effectif global » ou « TEG » sur un crédit immobilier emploie une dénomination périmée.
- En vigueur depuis le
- Source
- Article L. 314-3 du code de la consommation — Légifrance
Le texte vise les frais payés ou dus à des intermédiaires intervenus de quelque manière que ce soit dans l'octroi du prêt, même lorsqu'ils correspondent à des débours réels.
- En vigueur depuis le
- Source
- Article R. 314-4 du code de la consommation — Légifrance
À ne pas confondre avec les frais de GARANTIE — caution, hypothèque — qui sont, eux, nécessaires pour obtenir le crédit et entrent donc dans l'assiette.
- En vigueur depuis le
- Source
- Article R. 314-5 du code de la consommation — Légifrance
Compare at identical amount, term, guarantee and insurance share. Fees charged but absent from the rate: ask the question in writing.
Clause 7 — Administrative fees and annexes: every line item named
Each fee must be named, quantified and included in the annual percentage rate of charge. Negotiate them before the loan offer is issued.
Clause 8 — The security: entry cost, exit cost
Verify that it is the security as announced, that its cost is complete and that the refundable portion is identified: it will not be claimed automatically. The comparison: guarantee or mortgage.
Clause 9 — Borrower insurance: shares and true cost
The most dense clause, and the one richest in transcription errors.
- The shares, per insured person.
- The guarantees and the maximum age for each.
- The basis: initial capital or outstanding capital.
- The total amount over the term of the loan, the only comparable figure.
This is the item where the margin is greatest, and the only one that can be changed after signature (insurance substitution).
Clause 10 — The release of funds: the schedule to keep
Identify the deadline for first use: if the deed slips, the loan offer may become void. Request an extension beforehand. In tranches, interest runs from the first release.
Clause 11 — Early repayment: a capped penalty
Calculé au taux moyen du prêt, sur le capital effectivement remboursé par anticipation.
- En vigueur depuis le
- Source
- Article R. 313-25 du code de la consommation — Légifrance
Assiette différente de la précédente : le capital restant dû AVANT le remboursement, et non le capital remboursé.
- En vigueur depuis le
- Source
- Article R. 313-25 du code de la consommation — Légifrance
Le plus bas des deux plafonds
Les deux plafonds sont cumulatifs : le montant exigible est le plus bas des deux, jamais le plus élevé, et jamais le second seul.
- En vigueur depuis le
- Source
- Article R. 313-25 du code de la consommation — Légifrance
The clause must not exceed these caps. Request in writing, before the document is finalised, an exemption in the event of a resale. The calculation: the early repayment penalty.
Clause 12 — The general conditions: what governs the entire loan
- The domiciliation of income: duration and exit (domiciliation and counterparties).
- Acceleration of the loan: the circumstances in which the entire capital becomes due. Read it in full.
- The transfer to another property, rare and conditional (the transfer of a loan).
- Joint and several liability: each co-borrower is liable for the whole amount.
The twelve clauses at a glance
| # | Clause | What it decides | Negotiable before finalisation? | Recoverable after signature? |
|---|---|---|---|---|
| 1 | Parties and guarantees | Who is bound, and for what | No | Material error only |
| 2 | Nature and purpose of the loan | The applicable regime and the lasting obligations | Structure yes, purpose no | No |
| 3 | Amount and funding plan | What is financed, what remains to be provided | Yes | No |
| 4 | Term, deferral, repayment schedule | The total cost and the maturity | Yes | No |
| 5 | Nominal interest rate and its nature | What you pay, and what can change | Yes | No |
| 6 | Annual Percentage Rate of Charge | The only basis for comparing two loan offers | Through its components | No |
| 7 | File fees and annexes | The entry cost | Yes, to be requested before finalisation | No |
| 8 | Guarantee | The entry and exit cost | The choice, sometimes | Difficultly |
| 9 | Insurance, shares, cost | The actual coverage of the household | Yes, significant margin | Yes, by substitution |
| 10 | Disbursement of funds | The schedule and the interest before amortisation | Somewhat | Extension to be requested before the term |
| 11 | Early repayment | The cost of a resale or a buy-back | Yes | No |
| 12 | General conditions | What governs the contract until the final instalment | Little | No |
The conditions to be satisfied before the funds are released
Security established, insurance certificate, own contribution evidenced, property documents, deed signed within the deadline. As long as one condition is missing, the lender will not release the funds. List them and date each one upon receipt.
These are not the suspensive conditions of your preliminary sale agreement.
The annexes to request during the deadline
Request the following in writing, during the deadline:
- the insurance policy, the only document that is enforceable, not its summary;
- the amortisation schedule for each secondary line;
- the general terms and conditions themselves.
What could never have been promised to you
"It is the same amount as your rent" commits to nothing: the formula is prohibited.
The three checks to make as a priority
- The insurance shares, for each insured person.
- The amortisation deferral, if it has not been requested.
- The early repayment clause, in its entirety.
Any discrepancy with what was agreed? Write before accepting.
Do you have your loan offer in hand? Create your file or request a second opinion by phone.
Sources
Read next
- Banks in Lyon: 54 mortgage lenders
- Mortgage amortisation schedule: how to read and check it yourself Amortisation schedule: verify each line with three checks, read the interest, capital and insurance, and see the effect of an early repayment.
- Repaying your mortgage early: paying the compensation fairly Repaying early is a right. The compensation is due only if the contract provides it, capped at the lower of two calculations. The exempt cases.
- Releasing the funds for a mortgage: who triggers it, when the money is transferred, and how to avoid a delay The notary calls the funds, not you. What the lender checks before paying out, when to transfer your own contribution, and how to avoid a delayed release.
- Can the bank require you to domiciliary your income with it? No text obliges you to domiciliary your income for a mortgage. Quantify the requested consideration and negotiate it before the loan offer.
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