To finance your real estate project, you can benefit from several types of loans. How your credit report builds depends on your profile and what you’re buying. To help you see things perfectly clearly and optimize your financing, here are some explanations.
Understad how mortgage loans work
There are several types of credits , corresponding to several repayment methods. In all cases, the total cost of the loan includes: the amount borrowed, loan interest, insurance premiums and any guarantee premiums.
Deprciable mortgage
This is the best known and most classic type of mortgage . The borrowed capital generates a certain amount of interest . Each month, you pay the interest on loans and you repay a fraction of the capital. The monthly payments are calculated over the entire duration of the credit. The more you advance in time, the more the amount of interest decreases in favor of the repayment of the capital.
The bridging loan
This is a short-term home loan , one to two years, that you repay by selling a property. It’s the ideal loan to bridge the gap when you change your home . The bank lends you 70 to 80% of the value of your property until you sell it. When coupled with a conventional loan, which is the most common case, the bridging loan offers borrowing rates similar to a conventional mortgage .
The loan in fine
Quite specific, the loan in fine particularly concerns large investors who use it for its tax benefits. It is only reimbursed at the very end of the loan (after 10, 15 or 20 years). During the term of the loan, you pay the loan interest to the bank and you pledge a savings product. The loan in fine makes it possible to remove a property from the tax base of the IFI and to deduct more loan interest from property income.
The smoothed mortgage
The smoothed loan is a method for harmonizing your repayments. To finance your real estate purchase, you can use several loans , at different rates and over different durations (Zero Rate Loan and classic loan for example).
To know: Increasingly practiced by banks, credit smoothing facilitates the management of your budget and makes it possible to reduce the total cost of your loan.
The family loan
Unlike the loans mentioned before, the family loan is not contracted between a borrower and a bank but between a borrower and a member of his family. It has many advantages, starting with the possibility of increasing the total amount of financing for a real estate project and improving its loan application file with banks in order to obtain a larger loan.
Overview of subsidized loans
Subsidized loans are loans subsidized by public authorities or private companies. They offer attractive interest rates and, in some cases, more flexible repayment terms.
The PTZ
This is the most famous of the subsidized loans . This is a loan subsidized by the State granted under conditions of resources to first-time buyers , ie to buyers who have not owned their main residence in the last two years
The regional loan
To support buyers who wish to settle or invest in their territory, the regional loan is a solution to consider. With a lower rate than the classic mortgage, you can finance your project at a lower cost. Check with your regional council to find out if you may be eligible.
Local subsidized loans
Several cities have set up subsidized loans or subsidies to help buyers. Some offer their own zero-rate loans, which can be combined with the state PTZ. Others opt for subsidized loans or subsidies for a new purchase. The site of the National Agency for Information on Housing (ANIL) lists all the aid in force .
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The Social Accession loan
The Social Access Loan is a loan at a rate set by the State, distributed subject to means testing only to finance the main residence of the borrower.
The loan for cross-border commuters
If you are a cross- border worker , you can contact Swiss banks. Thanks to the real estate loan in CHF currency , you will be able to finance your real estate project by benefiting from advantageous conditions. When you decide to settle in Switzerland, this solution can be more interesting than a traditional loan in France.
The advantages of the official real estate loan
The income and employment security of the public service allows you to finance your project at the best cost. Several dedicated establishments, such as CASDEN, offer advantageous borrowing conditions and offer solutions adapted to all profiles.
At stake ? Tailor-made financing offers , especially for young teachers. With, of course, all the advantages of a civil servant mortgage (free deposit, attractive interest rate, preferential insurance rate, etc.)
Can you borrow when you are self-employed?
Do you work as a self-employed entrepreneur and do you plan to acquire real estate by taking out a loan? Banks now offer solutions adapted to this increasingly frequent status. In our article dedicated to the auto-entrepreneur mortgage , find out what the conditions imposed by the banking establishments are.
The variety of credits available will allow you to find the most suitable financing for your project. First-time buyer, young borrower, entrepreneur… Discover the aid and formulas adapted to your profile.
Borrow when you’re young
To help you realize your dream of becoming a homeowner, many banks offer a young mortgage . To support first-time buyers , these financial institutions offer preferential conditions with a negotiated rate and the possibility of adjusting your monthly payments according to your professional development .
Borrow without contribution
You wish to take out a mortgage, but you do not have a personal contribution. Can you borrow anyway? The answer is yes ! We explain to you why it is possible to obtain a mortgage without contribution and what are the conditions to be met for a bank to finance your entire real estate purchase.