Choosing a mortgage implies, upstream, a lot of questioning and certainty to avoid being taken aback. First of all, as stated Ministry of Economy website, a mortgage can be used, according to the Consumer Code, to finance the acquisition of a property for residential use or even for mixed use (residential + professional). In addition, if you are planning repairs, improvements, maintenance of your property or construction work, the mortgage can also be useful to you. ” When a bank grants you a mortgage, it may require a guarantee, which may take the form of: a mortgage […]a surety […]the privilege of lender of money which allows the bank to be compensated in priority if the mortgage is no longer repaid », adds Economie.gouv.fr.
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What about the debt ratio and borrowing capacity?
Debt ratio, borrowing capacity… These are words that can be scary and yet they represent one of the most essential steps when buying a house and setting up a loan. real estate. Indeed, the debt ratio will make it possible to calculate “your borrowing capacity without putting you in financial difficulty” reveals the MAIF on its site. Clearly, it is the calculation, the ratio, between your income and your expenses. Since January 1, 2022, it has also been set at a maximum of 35%. It includes your loan charges and your rent. ” This operation allows the bank to distinguish: the amount that you can allocate each month to the repayment of your credit and your remaining living, which is necessary for you to pay the rest of your expenses “, reveals the website of the ministry.
How much will my mortgage cost me?
It is very difficult to answer this question. Indeed, each case is different and has its own criteria and income. Added to this is the amount you will borrow and especially the duration of the loan. From this will come the amount of interest that you will have to pay monthly. in return for the loan granted by your bank », always depending on the amount and duration of your loan.
Despite everything, the High Council for Financial Stability (HCSF) periodically issues a few recommendations to banking establishments concerning mortgages. In addition to not exceeding the “effort rate of 35% of the borrower’s resources” but also to limit the duration of the loan to 25 years. These are mere recommendations and not obligations. Indeed, as the CNIL reminds us, “ there is no right to credit and the financial institution reserves the right to sign the loan agreement or not.
