Borrowing when you are young is not always obvious, the requirements of banks can sometimes curb the desires of home ownership, and yet solutions exist to encourage the purchase of real estate.
Profile of young borrower
There is no age to become an owner or to invest in stone, it is above all a question of repayment capacity which will allow a young borrower to obtain his mortgage. It should be known that the mortgage is accessible from 18 years, it is obviously necessary to answer the requirements of the banks as regards debt, remainder to live but also the conditions of income and contract of employment. It is impossible to undertake a real estate project without presenting a permanent contract or equivalent (official holder), the income must also be regular.
There is an important point to check regarding the young borrower, it is the debt ratio. Banks cannot grant a loan when the candidate’s debt exceeds 33% after financing. This means that it is necessary for a young applicant to submit a credit application in progress, this will allow most of the authorized debt to be used to repay the monthly mortgage loan.
Personal contribution when you are young
Most banks will require a personal contribution from any candidate wishing to obtain a home loan. This contribution makes it possible first of all to cover the costs of setting up the financing, it takes about 10% of the amount that will be granted for the purchase of the property. We will mainly distinguish the administrative and brokerage fees, when the young borrower calls on a broker, there are also the warranty fees (mortgage or bond) as well as the notary fees, essential for the drafting of the deed. authentic at the time of sale.
The contribution also makes it possible to reassure the banks on the financial capacities of the applicant, it is a sum which will make it possible to take charge of part of the cost of the credit or then to borrow to buy larger, by cumulating the loan and intake. Simply put, young borrowers rarely have anything to add to the file, as they quickly entered working life without necessarily having been able to save immediately. It is, however, possible to obtain financing, by having the necessary borrowing capacity requested by the bank, but also by opting for the mortgage at 110%.
Estimate funding now
Most young people can find satisfaction with banks to finance an acquisition, be it a house, an apartment or even a construction project. Financing solutions exist, as long as there is sufficient financial capacity to repay the debt under good conditions. It is, therefore, possible to simulate your home loan free of charge and without obligation to be informed of the current repayment conditions.