Different conditions are to be fulfilled on the part of the borrower to be able to obtain a mortgage, here are the main lines to validate this financing.
The mortgage is a bank loan, the minimum amount of which is 75,000 dollars . It must necessarily relate to a property acquisition and / or work within a property, the latter must be intrinsically linked to the building in question. The maximum repayment term for a home loan is 30 years (360 months), but some banks will agree to finance this type of credit over a maximum of 35 years , or 420 months. The repayment tenure will generally depend on the amount borrowed and the repayment capacity of the borrower.
This loan will systematically be accompanied by a guarantee , it can be a mortgage on the property or a surety , offered through a surety company. Different costs will intervene in the setting up of this financing, there will naturally be administrative costs , but also guarantee costs and a visit to the notary to draft the authentic instrument specifying that the borrower becomes the owner of the property . Loan insurance is optional but will be systematically required by the bank.
A condition related to borrowing capacity
To obtain a mortgage, the borrower must meet borrowing capacity requirements , that is to say that he must have a debt ratio of less than 33% after obtaining the mortgage. The bank that offers housing loans will systematically assess the borrower’s creditworthiness by requesting some essential information such as the amount of income , the amount of charges and any monthly payments of loans being repaid. The debt ratio will thus be calculated, just like the rest to live. These elements are part of the financing study carried out by the financial adviser.
The borrower must present at least a salary associated with a long-term contract, that is to say an employment contract with a permanent contract , a position of permanent official or an equivalent such as manager status or a retirement pension . It is often required to provide a personal contribution , of the order of 20% to 30% of the amount that will be borrowed, this is not necessarily an obligation on the part of the borrower. If his financial situation allows him to repay the debt, he can then obtain what is called a 110% mortgage.
Get the loan conditions of the moment
Beyond the conditions for obtaining financing, there are also loan conditions granted by banks, we naturally speak of the interest rate charged by financial institutions. We allow you to quickly and efficiently obtain the best loan conditions from the various banks present on the mortgage market, all you need to do is simulate a mortgage loan request , a service offered free of charge and without obligation. Thanks to its support, we will allow you to compare the conditions of banks, whether in terms of rates , guarantees but also in terms offees applied by each entity.