Are you looking for a mortgage? How do you find financing for the acquisition of your first property?
A lot of people, like you, are asking the question and we have some answers on that.
Indeed, in recent years, everything has been done to discourage new homeowners from investing in stone, the more years pass and the more special constraints there are for the granting of a mortgage. The latest is the financial contribution of 10% of equity other than your pension fund (LPP). This equity can come from your cash, a buyout or collateral of a 3rd pillar, a gift or advance on inheritance as well as an increase in a parent’s mortgage. Amortization of the 2nd largest debt in up to 15 years is also a new condition (previously 20 years).
Another point not to be overlooked is the cost of buying real estate (Notary, Land Registry, Transfer Law and the creation of mortgage schedules). They represent between 4% and 5% of the purchase price and may eventually be included in the financing under specific conditions.
The first thing to do is to call on a professional, so a finance broker, the latter will save you time, directly target the maximum loan value you are entitled to and make a full tender with all providers of the market, such as insurance companies, banks and possibly pension funds.
The broker’s work is generally free for clients, the broker is paid directly by the institutions according to the mortgage contracts brought. The interest rates that will be charged to you by the bank will not be higher to pay the broker, but often lower than if you go directly to the bank, because the broker has some bargaining power with the financial institutions as a result of the volume of business we bring to them.