The real estate loan is exclusively dedicated to the purchase of a property. It allows you to finance
- The construction of a detached house
- The acquisition of a new apartment on plan
- Buying an old property (apartment or house)
- Work on an existing property.
Namely : when the amount of work on the mortgage is less than € 21,500, the loan falls within the scope of consumer loans. The object of good may be:
- The main residence
- The second home
- A rental investment
Depending on the destination of the credit, the borrower may benefit from certain state aid. However, these home ownership grants only concern principal residences, except for certain subsidies distributed by the anah to investors.
The different mortgages
You may be able to use several credits to finance the purchase of housing. We review all real estate loans to help you understand how your financing will be organized and especially so that you are better armed facing credit professionals.
Whether you are dealing directly with the banks or using a broker, your knowledge needs to be as complete as possible. The contribution of a brokerage firm can also be very useful if you do not have a personal contribution. Do not hesitate to consult our partner, Empruntis, leader in the field.
- The PAS loan
- The loan agreement
- The PEL loan
- The relay loan
- The loan in fine
- The loan for rental investment
These are the loans for which the State intervenes. The public authorities bear the share of interest that the banks do not charge. Most of these aids are complementary to the main loan.
The PTZ plus
This is the most known and important assisted loan. Set up during J. CHIRAC’s first term, he has changed several times. Refocused on January 1, 2012 to acquisitions in the new, it allows to receive interest-free financing.
It is reserved for first-time buyers who acquire a principal residence and who do not exceed an income ceiling (condition reintroduced during the 2012 Budget Law).
The employer loan
Only private employees can benefit if they work in a company of more than 10 people. Its rate, of the order of 1% is particularly attractive. However, the amounts granted remain generally relatively low and repayment terms are on average lower than those of the main loan.
In addition, be aware that the employer loan is not obtained in a systematic way. The acceptance of your request depends both on the choice of the company (which can make the available sums of money available) and the amounts available at the time the borrower makes his request.
The loan to civil servants
Public service employees are not entitled to the 1% housing loan but benefit from the official’s credit. Its current rate remains well above the market (7% reduced to 4% in the first four years), it is of very little interest.
For certain specific categories of civil servants such as those who are in the gendarmerie or in the army, we propose a complete file on the mortgage specific to the military or gendarmes. We draw up a complete list of the banks signatories of agreements with the mutuals of the gendarmerie or the army and tackle complex legal aspects like that of the housing of function and the attribution of the PTZ (problem of the clause of mobility).
Local real estate loans
Many local authorities offer additional support to those of the public authorities, either in the form of an interest-free mortgage or in the form of a subsidy.
We have listed more than fifteen of these local aid. It’s up to you to go around. Perhaps you have the chance to live in a commune or a generous department.
- Local loans
Aid for the principal residence
The various forms of aid put in place by the public authorities have undergone a general overhaul on 1 January 2011.
Thus, since this date, the new zero rate loan is open to all first accesses with no income requirement and is more advantageous for “green” housing.
In return, old schemes, such as the land pass or the reduction of taxes on borrowing interest, have been eliminated.
- Aids for the first-time buyer
- The blue sky renovation loan from EDF
- All loans assisted for a first-time accession
Real estate guarantees
No real estate credit without guarantee. The bank wants to overcome a possible default of the borrower. For this two possibilities. Either establish a real security or opt for a mutual guarantee.
There are two of them. The mortgage is the most expensive and the most restrictive. In addition, it has the disadvantage of requiring a raised hand if the property is resold before the term. The lending privilege is cheaper than the mortgage due to the exemption of the mortgage registration fee, but it can only relate to an existing property.
This is a French-specific system that allows the borrower to avoid having to resort to real securities. While Crédit-Logement remains the best known, there are others specific to each of the banks such as CAMCA (Crédit Agricole).
In addition, officials may receive a deposit by their mutual
Negotiate the rate of a mortgage
Two choices are available to you if you wish to negotiate the rate of your credit. Do yourself the competition. You will spend a little time there, but you can achieve excellent results alone, especially if your record is good.
Otherwise the other option is to put the mission in charge of a mortgage broker whose job is to go around the banks on your behalf. Be vigilant before committing yourself. The regulations are very light and many brokers do not have the skills to bring you the best advice.
Ask immediately for the amount of their fees. Know that some are completely free while others will not hesitate to ask you 1000 euros.
Namely : banks pay brokers. The fees claimed are therefore added to this commission.
Other items to negotiate
Many borrowers tend to focus on the single interest rate. Be aware that the overall cost of your credit also depends on the other elements that make it up.
- Loan insurance: it is an essential element and it is imperative to check beforehand whether it is not preferable to opt for an external delegation.
- Guaranteed fees: they are substantially the same from one bank to another. However, avoid the mortgage and know that most banks go through mutual guarantees.
- The fees: they vary widely from one bank to another and even if they do not have a great impact on the final cost, know that it is quite possible to negotiate.
- Prepayment Penalties: When you repay a home loan, the bank generally applies a penalty of 3%. It is also an aspect of your file that you can negotiate.
Unlike some Anglo-Saxon countries, the legislator protects the borrower. The Scrivener Act of 1979 thus imposes on the lending institution a particularly strict formalism in formulating its lending offer. It follows a process that the public authorities supervise and monitor. You can also read our file on the deadlines for reflection and validity of the offers.
Our important pages on real estate loan
- The redemption of balance during a separation
- How to get a mortgage on 35 years
- Negotiate a mortgage without having a contribution
- Real estate loan to invest in the rental
- What can be done in case of refusal of a mortgage?