Mortgage Credit: Punishing Low Income Families -

How to get a home loan more easily? –

The new rules of the Supreme Council for Financial Stability have forced banks to tighten requirements for mortgage loans. For its part, higher interest rates prevent some borrowers from the threshold of usury. So getting credit is complicated for the French. However, there are tips to remedy this problem.

Access to mortgages has become increasingly complicated for the French since January 2022. After banks tightened loan terms and interest rates continued to rise. In this rather unfavorable context, specialists give some advice that will allow families to increase their chances of obtaining credit.

Increasing the down payment is one of their recommendations. The higher this share, the more it will help the borrower to benefit from the easy loan terms. It helps reduce the debt ratio by reducing the amount required by the credit institution to support the purchase. Banks like files that contain a large volume of contributions because they reflect the seriousness of the applicant.

What is the rate for your project?

Boost your cause with cash pockets

Therefore, mortgage loan applicants are advised to include in their file any assets that could increase their contribution:

  • family donations
  • employee savings, life insurance or other financial investments made;
  • State-backed loans: PTZ (Zero Rate Loan), CEL (Home Savings Account), PEL (Home Savings Plan);
  • Savings Books: Popular Savings Book (LEP), Sustainable Development Handbook, Booklet A;
  • etc.

However, in order to mobilize the required funds on time, this solution requires strong anticipation. For example, it takes a long time to open life insurance. One brokerage expert explains that increasing the contribution to try to improve your profile works if:

  • the borrower weakens the term of the credit;
  • The lending institution charges it with an effort on the rate over the same period.

As a note, when the purchase is made through a civil real estate company, some banks abstain from voting Monitor the rate of wear. This maximum which they exceed these institutions are no longer allowed to grant loans.

What is the rate for your project?

Lower your borrower’s insurance premium

Another solution that makes getting a loan less difficult: use Variable interest rate loans. By moving towards this category of credit, the borrower in some cases avoids the problem of the erosion limit. According to our experts, the regional bank currently offers a loan with a “maximum 1” reconsideration interest rate of 1.20%.

Therefore the change in the variable rate for this loan is limited to a maximum of +2.2% (+1 point) over the term of the loan. The rate revaluation is based on the 3-month interbank Euribor rate and takes place every year. This difference can sometimes make it possible to circumvent the wear threshold and make the file bankable, brokers estimate. Our spokesperson, Mile Bernier, expects:

Loans with a maximum limit of 1 are products that remain protective of the borrower. It is unlikely to lead to over-indebtedness. Movement will accelerate. These are not at all dangerous products that we have seen in the United States.

Mile Bernier

finally, It is also possible to borrow more easily by significantly reducing the cost of securing a loan. One of the two parameters that determine the loan rate.

It is therefore recommended that you play the competition when subscribing to this guarantee to achieve this reduction.

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