roof over your head. If a fan of old comic books or collections sometimes asserts that all it takes is a piece of tithe to make a fortune, real estate often seems like a more sensible solution. It is also recommended that everyone own their own home and pay off their potential loan before liquidating their pension rights: this is a guarantee to reduce (sometimes significantly) their expenses and can – even benefit from rental income. Without forgetting, of course, all the doors that open in terms of succession!
But here it is: before getting to pass on her real estate heritage, it is still necessary to inherit oneself… where to buy. Unfortunately, the real estate bubble observed in France led to high prices for a long time, which complicates the acquisition of many workers with relatively low wages. The tough targets of the banks mentioned by agency chief Jay Hiccups in columns Send Some potential buyers can also be removed from the circle of so-called “bankable” customers. “There is an increase in loan refusals mainly for contributions,” he explained, noting that he began noticing this phenomenon in April.
So the situation does not seem very encouraging. However, it is clear that the lack of buyers may drive down market prices in the future, Stefan Fritz continues in front of the speakers in the daily newspaper. What makes the situation a little normal and allows some to get out of it better with their bank? Can.
With regard to borrowing, it is important to remember that there are two main factors:
The higher the reward, the greater the possibility of borrowing without having to make a large contribution. In general, the percentage of debt granted by banks (that is, the amount of income allocated each month to the repayment of credit) does not exceed 35%, as explained by the professional comparator Les Furets.
Therefore, an individual who earns a net of 2000 euros per month can claim about 700 euros in monthly installments and get a loan, the exact amount of which will depend on the number of years allotted for repayment. But what about those who get less?
Can we still borrow money totaling less than 2,000 euros per month?
Some may already be inclined to buy real estate… although they cannot boast of receiving the aforementioned net €2,000. Money Fox I looked at the case of these buyers, considering someone who paid the minimum wage (ie €1,302 net per month).
According to our colleagues, the latter will not be able to borrow at most 85,417 euros, which is 430 euros in monthly installments to be paid each month, with a debt ratio of 35% as envisaged above. However, as the paper specifies, it seems likely that such a low income would prompt the banking institution to be more cautious…
Therefore, the maximum debt ratio can be limited to 33%, or even 30% in the worst case. The envelope cap therefore drops to €80,536, or €405 per month, excluding the borrower’s insurance, and must be repaid over a total of 20 years.
What happens when you can’t recover?
There are many French people who, after obtaining a mortgage, struggle to pay off the debts of the banking institution that they owe. Fortunately inform the Ministry of Economy, Finance, Industrial and Digital Sovereignty on its website that there are solutions.
The first thing to do, which we can read on the official platform, is to request a payment deadline. “You can actually contact your bank to request a payment deadline. This request must be in writing,” explains Teams Percy.
It is then necessary to refer to the loan offer, who himself can suggest a postponement or reduction of monthly payments, especially in the event of a financial blow. Be careful but this mechanically means extending the term of the loan…