Mieux vaut être précautionneux lorsqu'on utilise un simulateur en ligne pour estimer sa capacité d'emprunt.

Mortgage Credit: ‘Beware of Exhilarating Unreliable Online Simulations’

Posted on Apr 27, 2022, 7:00 AMUpdated Apr 27, 2022 at 9:42am

Online simulators allow you to estimate your total borrowing capacity based on the little data you give them. The less accurate the criteria, the closer the estimate is to reality. Often times, these simulators do not take into account all the parameters (such as the borrower’s insurance or the amount of your contribution), which are nonetheless essential in building a financing plan.

This is also the case, of course, for the interest rate that simulators calculate based on average prices at the moment. However, in reality, the interest rate you get will also depend on your risk profile.

So be careful: online simulations, like business simulations made in a bank, have no legal value and, above all, do not reflect the reality of your situation. The danger is that you end up with the wrong idea about your ability to fund and base your research on an illusion…

Get to know yourself

The idea is that you know your situation well, your weaknesses and your strengths. To do this, you must collect the exact numbers and items in order to prepare a serious file, which will give you a realistic view of your borrowing capacity.

Unlike online simulations, accurate analysis requires personal information. what is your degree? What is your income? What type of contract? CDI? CDD? does not depend on ? How long have you been working in your company? For the apartment of your dreams, imagine the value of 500,000 euros, what is the term of your loan? How much is the notary fee? Agency fee? Bail? Insurance on the borrower? Will your debt ratio stay below 33%? What will your loading jump be? And the rest of your life alive?

As you can see, compiling a file is a task in itself. A few clicks on the Internet is not enough.

In addition to the above items, it is important to have an account management that cannot be fixed (which means no frequent overdrafts or small consumer loans for example). In short, take care of your profile and carefully collect the appropriate items.

Be patient before you rack

To get a finance certificate, a good broker will rely on these items you have collected. With your degree, you have your first realistic estimate of your ability to borrow. Don’t forget to attach it to your offer of purchase to reassure the seller, it might make a difference.

Things will start getting serious when your sales agreement is signed. The banks will then study your mortgage application based on an in-depth study of your file and one of them will (hopefully) offer you a loan offer.

It is better to be very careful and carefully look after your profile than to be intrigued by a pleasant but unreliable estimate. Because you will surely be disappointed with reality: less borrowing capacity and an apartment far from what you imagined. In short, forget about business simulations and wait until you have the loan offer on your hands before sending out the invitations to the housewarming party!

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This forum was written by a contributor outside the editorial board. Les Echos START is neither paid nor paid to publish this text. So it was chosen to publish only on editorial criteria.

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