Credit repurchase and double monthly payment


The double monthly loan was designed to shorten the term of the loan and thus reduce its cost. More and more banks are offering it to their customers. As a rule, the bank limits the payment of a double monthly payment to once a year, but the operation can be repeated several times.

This system benefits the borrower financially provided that it does not exceed the accepted debt ratio. This is why it is advisable to wait for an exceptional return of money: a thirteenth month, a profit-sharing bonus…

However, is it possible to buy back a double monthly loan to finance a new project, reduce the duration of debt repayments, or earn cash?

Double-term credit repurchase

Double-term credit repurchase

It is quite possible to buy a double monthly mortgage which can be combined with other consumer loans, as in the case of a grouping of conventional loans. All work in progress is then repaid in advance by the lender, and the borrower has only one loan term to pay. He can thus reduce his monthly payment by extending the duration of the credit, or repay faster by reducing it.

The conditions required for the repurchase of a double monthly loan

The conditions required for the repurchase of a double monthly loan

The most often required conditions are:

– stable employment and income;
– a reasonable debt ratio, set at 33% of the borrower’s income;
– normal operation of bank accounts, that is to say, no rejection of direct debits, no abuse of overdraft authorized.

Compensation for early repayment of a mortgage

Compensation for early repayment of a mortgage

Please note that the prepayment of a home loan may give rise to compensation payable to the lender. It is advisable to verify the loan contract before starting any step. If necessary, they should be included in the credit repurchase.

By paying off your mortgage early, you’ll save on the additional interest expense that would have been incurred in your regular payments. This savings can be significant, and will increase with the prepayment amount.

In all cases, they cannot exceed 6 months of interest (not to be confused with 6 monthly payments) or 3% of the principal remaining due. Sometimes, a bank may also provide for the settlement of indemnities in the sole case of the repurchase of the mortgage by another bank.