Standardized Information Sheet (ISF) of mortgage loan → insurance, conditions

As everyone knows, we do not engage in a mortgage loan lightly and on the other side of the loan, of course, it is the same for lenders. To formalize all this as it should be, banks are now obliged to send you a standardized information sheet . What is this document and what is it used for? This is what we will see together below.

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What is the European standardized information sheet?

The Standardized Information Form or FSI , in its contracted name, or European Standardized Information Form , in its more complete name, is a document that has been made obligatory for all formulations of real estate credit offers since October 1st. 2016. This obligation results from the decree n ° 2016-607 dated May 13, 2016 . In addition to the obligatory nature of the document, it is a very useful document, first of all for the borrower (who can benefit from using it for other purposes than the original one), but also for the bank that formulates the offer in question (according to the same concept as the borrower).

Advantages of the standardized information sheet for the borrower

The ISP is a document summarizing all the guarantees (mandatory guarantees, optional guarantees) that your loan insurance must provide to your home loan. In doing so, there is an all-out way to identify the characteristics and terms of home loan offered by the lenders to better compare them. If we do not launch lightly in a mortgage, it remains nonetheless that we are often required to make simulations of all-out borrowing and sometimes it is difficult to remember precisely the conditions of each of them. ‘between them. If this is the case, the rate is retained – for the best informed, the APR rate is retained – and the rest, whose borrowing insurance is essential, often falls short. With the standardized information sheet , you can, post simulation, compare much more easily all the offers you have received and so choose with full knowledge of the facts and with much more readability.

Beyond the borrowing rate that has crystallized all your attention at first, the FSI will allow you to remember or find faster the essential components of each mortgage offer:

  • operation of the borrower insurance and associated cover,
  • early repayment terms,
  • procedure to follow in case of complaint,
  • etc.

There, thanks to the FSI you can settle down calmly, possibly between co-borrowers, and can better compare and therefore choose to rest.

In addition to the increased ability to compare and recall important elements of a home loan, the other big advantage of FSIE will be the bargaining power. Indeed, as you will receive an offer from each of the lenders that you will solicit, you can, if you are already more or less oriented to one of the organizations – especially if for any reason (condition of borrower insurance, proximity, early repayment condition …) you favor one bank over another that would not necessarily be the least expensive bank – make the ISP play in the negotiation.

For example, if you have received a mortgage offer with a cheaper rate ( APR ) than the one offered by other banks, but with prepayment conditions that do not suit you when it comes to you. an important criterion, you will be able to return to the low-rate bank by presenting it with the terms of repayment of greater interest to you that have been proposed to you by one of its competitors and ask it to be aligned with them or in the negative to obtain other benefits in return. It will often be much easier to get an extra advantage when negotiating with a bank as long as what you hope for will not be an “immediate and purely cash” drop in the borrowing rate of your offer.

FSIE for the bank

In addition to the convenience for the person who borrows, the standardized European fact sheet is also useful for the bank that formulates the loan offer because, in good summary basis that it is, it represents an excellent support to be able to go account of certain anomalies in the loan offers or conditions not ultimately advantageous borrower insurance for the customer. Thus, as it is a mandatory document to give to the potential borrower, it is a document that can be optimized to convince more easily. Because you have to know that banks when they are in a period when they need to recover new customers are often more “aggressive” in the mortgage offers that they formulate with potential future customers.

Thus, formulating attractive and more attractive offers than those offered by competing banks will be one of the ways frequently used by banks to attract new customers to them. This is also what we often see at the various real estate fairs (if you plan to start a mortgage soon, do not hesitate to monitor if one or more real estate fairs are close to home you because the offers that the lenders will make you on the stands will be more advantageous than those you have in agency;)).

In addition to gross supply, a well-formulated, clear, concise ISP that best demonstrates the benefits of loan insurance associated with the offering can potentially be a decision-making element for a future mortgage underwriter. .

Conclusion – To go further on the subject

As you may have noticed, the ISF or FSIE is therefore a particularly interesting and useful document for all those who are wishing to embark on a mortgage, whether it is a first accession to the property, a real estate acquisition for rental investment, etc.

For all those who want to know more about the standardized information sheet, here is the text of the law on the site Legifrance to be referred to on the subject. The latter is the decree of April 29, 2015 which specifies the format and content of the card.

 

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