Conditions for obtaining a mortgage
With historically low rates, it has rarely been so tempting to borrow. But before you start, be aware that banks impose certain conditions on you. CDD, CDI, without contribution… how to obtain a mortgage according to your profile?
A significant personal contribution multiplies your chances of obtaining a good financing offer. ©nortonrsx
The conditions to be met to obtain a loan easily
What conditions for a mortgage with a CDD?
Real estate loan without contribution: what conditions?
The CDI: the ideal contract to obtain a mortgage
The conditions to be met to obtain a loan easily
Contribution, debt ratio… to get a mortgage easily, it is essential to take care of your file. Today, a bank requires at least 10% personal contribution , which generally corresponds to the expenses involved in the purchase of real estate (notary fees in particular). But be aware that the greater your contribution, the more the bank will be willing to grant you advantageous credit. A substantial contribution will show the bank that you are able to save. Regarding your debt ratio, it should not exceed 35% of your monthly income : it will take into account all your current credits (car, work, etc.). To assess their risk, banks also use the notion of “rest à vivre”. This is the amount that remains available once the monthly payment of the credit has been taken. It must be able to meet all current expenses, such as food, taxes and charges, etc. The bank will require a guarantee that will protect it in the event of default on your part. This guarantee can take the form of a lender’s privilege for old housing , a mortgage for housing acquired off-plan (sale in the future state of completion) or a surety from a specialized organization such as Crédit Logement.
To be able to hope to obtain a mortgage, your debt ratio must not exceed 35% of your monthly income.
What conditions for a mortgage with a CDD?
Even if the credit rates are currently attractive, it remains difficult to borrow when you are on fixed-term contracts , the banks always favoring employees on permanent contracts, which present less risk. If you are on fixed-term contract , you will therefore have to prove your financial solidity over the long term to convince your bank. It should be noted that to obtain a loan, all people on fixed-term contracts are not housed in the same boat. If you have a CDD from the public service, you will not encounter any particular difficulties in borrowing because you will be considered by the bank as a CDI. You can even benefit from specific offers in terms of rates or guarantees. On the other hand, if you are on fixed-term contract in the private sector, it will be much more complicated: mostbanks study the profiles of borrowers on a case-by-case basis (duration of the contract, nature of the activity carried out, etc.), while other establishments systematically refuse them. In any case, the longer your contract, the more likely you will be to obtain a loan. The same applies if you accumulate fixed-term contracts in the same sector of activity and with little interruption. This proves that your sector of activity is dynamic and that the risks of finding yourself unemployed for a long period of time are low.
Real estate loan without contribution: what conditions?
Banks generally require at least 10% down payment to grant a mortgage . However, under certain conditions, it is possible to obtain a loan without contribution. Good news if you have not saved to form your contribution and you cannot benefit from subsidized financing, such as the home savings loan or the PTZ ( Zero Rate Loan ). The loan without personal contribution is often subject to stricter conditions and the rates granted are higher (up to 0.2% more) than those of conventional loans, which can be expensive over a long period of borrowing . To benefit from a loan without personal contribution, certain borrower profiles are favored by banks. This is the case for first-time buyers, customers with high incomes and real estate investors. To benefit from a loan without contribution, the management of your accounts will also be carefully examined. Depending on your employment contract (advantage to permanent contracts), your monthly income, your debt ratio (loans in progress) and your remaining life, your bank will be able to offer you attractive borrowing conditions.
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The CDI: the ideal contract to obtain a mortgage
If you are on a permanent contract and you have not been on a trial period for more than 2 months, you will have no difficulty in borrowing, provided you meet the criteria for granting mortgages. The monthly payment of credit must not exceed one third of your income and the remainder to live must be sufficient to ensure the functioning of your household. In addition, if you are a tenant, the difference between your current rent and your future monthly payment must be reasonable. Note that some banks will also judge your sector of activity. If you work in a sector in difficulty, you will not have less chance of obtaining a loan but your rate could be less advantageous than if you work in a booming industry (the digital sector for example). If you were on a fixed-term contract beforehand and you have just changed to a permanent contract with the same company, you can start the process to obtain your loan. Your bank will take into account your income for the last three months. On the other hand, if your salary has been reassessed upwards by going on a permanent contract, it is advisable to wait 3 months before applying for a loan, so that the bank takes into account your new income: this will allow you to obtain more attractive borrowing conditions.
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