Solution most commonly used to finance the purchase of real estate, single
or in addition to a personal contribution or a help loan, Bank loan is
distributed by RIR or some specialized institutions. It can also finance your future
primary residence, a second home or rental investment.
To make this loan, the Bank may ask a personal contribution corresponding
to 10% or even 20% of the total amount of the transaction to finance.
Real estate agency fees are an integral part of the cost, where it is
intended that they be paid by the buyer.
The financial package of the file consists of a series of simulations on
the life of the loan (duration, timetable, monthly repayment, interest rate,
amount...) from supporting documents (ballots salaries, tax schedule, libretto
by family...).
The funds will be released while the final signature of the deed of sale,
under the responsibility of the notary who will receive the deed and the deed
of loan.
The duration of a mortgage bank is not limited by regulations. However the
increase in real estate prices and also the lengthening of the duration of life
lead to a lengthening of the duration of loans which leads more people to go
into debt for increasingly longer periods, which can reach up to 30 years and
more.
Currently, the average is around 20 years. But the actual duration is much
shorter, around 12 years old, due to the occurrence of events in life that
allow an early end of repayment (resale of the current well with income,
inheritance, gifts...) of the loan.
Over the duration of the credit, the more its total cost for the borrower
is. Why?
Because the interests are calculated, each due on the outstanding capital
balance: more the rate of reimbursement is slow, most outstanding capital is
important and more interests are high.
In return, longer duration of credit, most deadlines are low.
In return, longer duration of credit, most deadlines are low.
The personal contribution
This is the share of financing of your real estate project you have without
borrow from the credit institution. The contribution consists of your 'cash',
i.e. your personal cash flow and your mobilized savings also: booklet, PEL...
Although some establishments agreed to grant a mortgage without down payment
of the borrower, a minimum is usually required and granted credit conditions
are even better that this part is important. You should know that a personal
contribution will condition the loan amount and often its duration or it’s
monthly: more your intake is important, the short will be the duration of repayment
or lower will be your monthly payment of reimbursement. We note that in the
absence of personal contribution, the interest rate may be higher: 0.40 to
0.60%, or even more.
When calculating the amount of real estate purchase, do not forget to count
the charges of the loan guarantee. Be aware that solicitor's fees, which may
be important (about 7% of the selling price for a completed over housing 5
years) to be funded by a personal contribution or by loans assisted, but are
not by regular Bank loans.
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It is also recommended to keep a precautionary savings to cope with
unforeseen but frequent expenses at a real estate purchase (heating, taxes...)
and not to invest all of its availability in the personal contribution.
You can also contact your pension or welfare, which provides loans included
most of the time between 3 K€ and 5 K€, as well as local communities that can
make loans to accession under the no land.
Departmental structures such as Abdullah (Agency departmental for Housing
Information) can usefully advise you on aid and regulated loans.
