our 4 essential tips to avoid it!


Refusal of a mortgage: our 4 tips to avoid it!

Passive rates recorded on 10/17/2022.

Between rising interest rates, usury rates that are just rising and galloping inflation, the current context does not seem exactly favorable to the realization of a real estate project. However, it should be borne in mind that banks always remain open to financing. It’s all about offering the best possible practice for avoiding a mortgage decline. Here are 4 tips to get your credit and finance your dream property!

1 – Check the feasibility of your project

Before applying for a job offer or before applying to a training organization, do you check the conditions required to qualify for the offer? Well, it’s the same with the mortgage. To increase your chances of being financed, you need to check if your profile and project are in line with the bank’s requirements.

To achieve this, you can use online mortgage simulation tools to:

  • Check your debt-to-GDP ratio. The first criterion observed by the bank, the debt/GDP ratio must not exceed 35% (insurance included and new project included), according to the High Council for Financial Stability. If you are above the authorized legal limit, you will need to repay your current credits as much as possible. Furthermore, in addition to the debt-to-GDP ratio, banks also monitor your residual life. In short, clean up your budget as best you can to put the odds on your side.
  • Evaluate your borrowing capacity. With this type of tool you can get an idea of ​​how much you can borrow based on your household income, the desired loan term and the indicated rate. If you still don’t have an idea of ​​the rate we could offer you, this type of calculator can offer you by default the average rate currently applied for the selected term. Practical, isn’t it?

Take advantage of our experience at the best price!

from 1.70% over 15 years(1)

2 – Take care of your accounts

We cannot repeat it enough, it is important to present a file with the spring onions. And that means cleaning up your bank accounts. Indeed, the requested bank will attach great importance to the management of your income. Get out of repetitive overdrafts, compulsive spending and gambling. Your bank statement is your resume. To verify the correct management of your resources, you must provide, with your mortgage application, the last 3 account statements to study your financial behavior. So be exemplary!

3 – Present a sufficient intake

This advice goes hand in hand with the previous one. A good manager is the one who manages to pay the bills and save even a small amount every month. feel free to schedule an automatic transfer to a savings account to demonstrate the seriousness of your approach.

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Good to know

To obtain a home loan it is generally recommended that you submit a personal contribution representing approx 10% of the total transaction amount. This sum will be used to finance the notary and guarantee expenses. The greater this contribution, the better the chances of obtaining the loan.

4 – Play the competition

Property rates have risen since the start of 2022. Indeed, the 20-year average rate, for example, stood at 1% in January, versus 1.95% in October. To this considerable increase was added the problem of the usury rate. We recall that the usury rate is the maximum rate at which banks can grant loans. This figure, calculated quarterly by the Banque de France, quickly found itself at odds with the sustained rise in interest rates. However, since 1um October, the usury rate rose to 3.05% for mortgages over 20 years, giving new life to credit institutions.

” […] the The window of opportunity available to borrowers as the usury rate increases will be relatively short. It is therefore more than ever the time to start and turn your project into reality! “, explains Cécile Roquelaure director of studies at Empruntis.

To find the best deal, the (not so well kept) secret is to play the competition. But this task can be time consuming. It is possible to turn to a specialized professional whose main mission is to direct you to the bank that offers you the best mortgage based on your profile and your project. A mortgage broker who is in constant contact with banking institutions will be able to find you the best loan.

Take advantage of our experience at the best price!

from 1.70% over 15 years(1)

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