What is the right profile for a borrower with a real estate project? When pushing the door of banks to obtain a mortgage, the main asset of a future borrower is above all to know how to reassure. To do this several possibilities are open, possibly allowing to obtain very interesting proposals. While historically banks are particularly fond of profiles with strong savings, this rule is not so obvious today.
Profiles of borrowers who evolve
For a long time, to borrow to finance a real estate purchase, it was necessary to come to see his bank with a large personal contribution in his pocket. But with the ever-increasing tax on various savings products, and a quasi-constant decrease in earnings, this type of profile has become increasingly rare so that today personal contributions generally cover only notary fees, but little more. In the eyes of the banks, savings were a pledge of budgetary rigor and seriousness that tended to reassure before granting a mortgage.
This typical profile is currently evolving: the most sought-after profile today is that of a home for young high-income earners, preparing a real estate investment even without input. Thus, according to FonaLoan in a study published last spring, the number one criterion studied by banks is no longer the amount of the contribution but that of income. The best way to reassure your bank for a mortgage is therefore to offer income to not exceed 33% of debt.
Banks ready to offer unbeatable rates
The current market lends itself to this, as is the current economic context: real estate prices are low (even if they tend to start up again slightly), and historically low mortgage rates. This truth is even more valid for the “royal” profiles in the eyes of banks: a serious case, ideally a young couple with more than € 5,000 of income and a contribution covering notary fees, can discuss with establishments that do not hesitate to grant ultra-competitive conditions, including mortgage rates that can be close to 1%. Negotiating with your bank when you have an attractive and reassuring profile is much easier than one might think…
Attractive savings on financial products offered by banks
As a backdrop to new mortgage loans, banks are aware that they are attracting long-term loyalty to new customers. Banks that are then ready to concede more competitive financial products, or high-end products at lower cost, in addition to advantageous credit. The set as part of a global package designed to attract and retain these new profiles deemed reliable and reassuring, with good income, to the detriment of the criterion of contribution.