Mortgage Acceptance Conditions: The Three Points You Should Know - Mirror Mag

Mortgage Acceptance Conditions: The Three Points You Should Know – Mirror Mag

Are you planning to apply for a mortgage? be careful ! Banks don’t just lend to anyone. They carefully study the history and professional activity of the borrower. Thus, some rules are necessary and must be followed to benefit from a mortgage. In order to help you out, here are the three points you absolutely need to know.

You have a maximum debt ratio of 35%

First of all, the debt ratio is the percentage of your income that you set aside each month to pay off your loan. It is a way to check that your loan is compatible with your standard of living. According to the recommendations of the High Council for Financial Stability (HCSF) in January 2021, this rate should not exceed 35%. In other words, your salary should be three times higher than the monthly loan repayment. The bank then analyzes ‘remaining to live’ and ‘family quotient’ before accepting your application.

You have a stable occupational situation

When you apply for a mortgage, banks also analyze your ability to repay, and more specifically your personal finances. They attach great importance to the type of your employment contract. If you are a permanent contract employee (CDI) or a civil servant, the bank gives you the loan easily. On the other hand, if you are a commercial manager, or self-employed, on a fixed-term contract (CDD) or on a temporary basis, this means your average income received over the past three years.

To be of the perfect age and in good health

Another requirement, your age. The bank appreciates the borrower’s vision over a long period of time. In this case, young people aged 30-40 years are very suitable. In fact, it is easier for a person of this age to obtain a loan than an individual entering retirement age. Your health condition is also closely monitored. If you want to avail a mortgage, you must therefore obtain borrower insurance.

#Credit Mortgage: Increasing Age of Borrowers #Tighter access to credit has an effect on the age of first-time buyers whose files are accepted. > Decryption in the following article:

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