To finance a project to buy a house or apartment, mortgages are often the solution. However, the banks have put in place conditions to be met in order to obtain the necessary funds.
A maximum debt ratio
The debt ratio corresponds to the percentage of income that you use to repay your monthly loan payments. By calculating this borrowing capacity , the bank ensures that the amount of your remainder to live is sufficient. If this is not the case, it may refuse your request for financing.
Since January 1, 2021 , the HCSF has changed the maximum recommended debt ratio for obtaining a mortgage from 33 to 35% . Your chances of obtaining bank financing with the same salary therefore increase.
A study of the files on a case-by-case basis
Candidates for home ownership who have high incomes can exceed this threshold since their remaining living remains significant.
Banks can be more flexible depending on the profile of the borrower. Very often, first-time buyers are favoured . Investors can also see their credit applications accepted since they have rental income that they can mobilize for the repayment of the loan.
The importance of the personal contribution
When you have a personal contribution , access to the mortgage is much easier. This available savings will be useful to pay notary fees. For new housing, they are between 2 and 3% of the sale price. You will therefore be able to use all of your loan for your real estate purchase, after deduction of insurance and guarantee costs.When you are able to present a financial contribution , you demonstrate your seriousness to financial organizations. Your savings capacity will work in your favor and provide additional insurance for your bank. You demonstrate that you know how to manage your accounts and that you are able to ensure the repayments of your mortgage.
This contribution can also come from personal or employee savings. This sum may also have been made up of investments or real estate for which you receive rent.
On the other hand, the absence of personal contribution should not discourage you. Banks grant mortgages even to people who do not have a personal contribution. You must keep in mind that the entire file will be studied. All your assets will therefore be taken into account. You can apply for funding if you have other arguments.
Sound financial management
If the constitution of the file is crucial, it must be composed of parts that work in your favor. Your bank statements must show that the management of your accounts is under control. During the three months preceding your mortgage application, you must avoid bank overdrafts and save regularly. Scheduled direct debits from your bank account must be honored. Any rejection of payment could cause the bank to doubt your ability to repay the full amount of your home loan.
Your bank statements should also show that your lifestyle is related to your income. The banker must be able to ensure your seriousness.
The conditions related to your professional situation
Banks accept the financing of real estate projects when the situation of the borrower and the co-borrower is sufficiently stable.
The CDI or the status of civil servant to convince
People who have permanent or civil servant status have every chance of obtaining a positive response to their loan applications. This employment contract reduces the risk of unemployment. Your income should therefore be stable and regular throughout the repayment period of the mortgage.
When you have one of these statuses, remember to specify it and indicate whether the trial period has expired . In this case, you will be offered an advantageous mortgage offer .
Civil servants can access specific offers. Indeed, the salary evolution grids according to the advancement are known in advance. The bank therefore knows exactly the borrower’s income throughout the repayment of the mortgage .
Real estate credit for temporary workers or people on fixed-term contracts
If these professional situations can be considered precarious , they do not prevent obtaining a mortgage. Above all, banks are looking for a certain stability. If you benefit from a long contract or if you manage to be renewed, she will be able to trust you and will lend you the desired sum even without a permanent contract .
Banks study the last two years to find out your professional situation and establish a credit offer. If you can prove that you worked at these times, you increase your chances of getting a positive response .
Access to the mortgage with other professional statuses
People on permanent contracts and civil servants are not the only ones who can obtain a mortgage. Above all, the bank is looking for a stable situation with regular income. The liberal professions can precisely meet these requirements.
Auto -entrepreneurs and self-employed workers will have to prepare a solid file by proving the constant increase in their turnover. The objective is to prove your professional stability. Your loan application must include income for the past two years. The bank will decide in view of these elements but as for other professional situations, these statutes do not constitute an obstacle to obtaining a loan offer . On the other hand, they may possibly have an influence on the amount of borrower insurance you can benefit from.
Conditions related to your personal situation
The study of the file is also based on other arguments. You should be aware that banks will also take these elements into account.
Borrow at any age
Whatever your age, active or retired , you can submit a mortgage application to banks.
Young people have access to a mortgage . The first-time buyer profile is of interest to banks. So you can use this argument to your advantage. By highlighting your assets in your file, you will have every chance of seducing and being offered an attractive loan offer. Financial institutions offer loss leaders. By retaining young customers, they hope to be able to offer their young customers additional products later on.
People over 60 can also get a mortgage. When you are in this case, you simply have to choose a suitable loan term and insurance with solid guarantees.
The influence of the nationality of the borrower
People who do not have French nationality can become owners in France. However, certain conditions must be met to access a mortgage when you are a foreigner:
You are a citizen of the European Union : you can easily obtain a positive response for your mortgage in France;
You are a foreigner outside the EU and you have a residence permit: you must prove that you will remain in France throughout the repayment period of this loan.