Can I take out a mortgage with a disability pension?

A real estate loan is an operation by which a lender makes a sum of money available to one or more borrowers in order to finance the construction or acquisition of a real estate property.

As far as access to credit for people with disabilities is concerned, only the banks have the power to grant financing. A person with a disability has the same rights as an able-bodied person to take out a home loan.

With a disability pension, access to a mortgage for buying a house in Collioure, for example for example, may be more difficult than if you had a stable income from employment. All financial institutions generally take the pension into account when assessing the ability to repay. Paradise Immobilier, the leading real estate agency in Collioure explains in this article how you can obtain a mortgage with a disability pension.

What is a disability pension?

A disability pension is a financial benefit paid by the State to a person who is recognized as being disabled. The purpose of this allowance is to compensate for loss of income due to disability and to support people in their daily lives.

To be eligible for a disability pension, you must meet certain conditions:

• Have a certain level of disability,
• Not being able to work,
• Not being adequately covered by other forms of financial assistance.

The methods of calculation and the criteria for recognizing disability vary from country to country and from one social protection system to another. Note that it is possible to combine a disability pension with other income under certain conditions.

The disability pension can be seized by creditors. It is considered income and is therefore subject to the same attachment rules as the debtor's other income.

What are the 3 categories of disabilities?

There are different ways to classify disabilities, but one of the most common is to divide them into 3 categories:

1. Temporary work disability (ITT) In this case, the person still has the possibility of returning to their previous state of health.
2. Permanent and Partial Disability (PPI) The person's ability to work is not totally compromised. There are degrees of permanent partial disability that can influence the amount of the disability pension.
3. Total and irreversible loss of autonomy (PTIA) This corresponds to a total incapacity to carry out any professional activity. The person is considered permanently disabled for work and may be entitled to a higher disability pension.

It is important to note that the criteria for recognition and the calculation of calculation of disability pensions vary from country to country and from social protection system to social protection system, which is why there may be additional distinctions or different categories.

Person with a disability: how to obtain a real estate loan?

There are several options for people with disabilities to obtain a home loan. They are often eligible for low-interest loan programs or grant programs to help cover the costs of purchasing or renovating a property. renovation of a property .

Another option is to use nonprofit organizations that can provide loans or grants to help people with disabilities own their own homes.

It is important for a person with a disability to explore the different options available and to speak with housing and lending professionals to get detailed information about the programs available in their area.

How to make a simulation for a real estate loan ?

There are several steps to make a real estate credit simulation:

1. Determine the budget,
2. Use an online simulator,
3. Check the different interest rates,
4. Take into account other costs,
5. Consult a consultant.

Before starting the simulation of a real estate loan, it is important to determine the budget in order to know the amount that it will be possible to repay monthly. This will be of great help in determining the amount of the loan to apply for and also in defining the interest rate and the repayment period that will be most suitable.

There are many online simulators that allow you to enter different information such as

• The amount of the loan,
• The interest rate,
• The repayment period.

This will give you an overview of the monthly payments and the total costs of a real estate loan.

It is important to check the different interest rates offered by the different banks and financial institutions to get an idea of the total costs of a real estate loan.

Keep in mind the other costs associated with buying a property such as:

• Property taxes,
• Insurance,
• Notary fees,
• Maintenance costs,
• Renovation costs.

Finally, a real estate credit advisor will be able to give you detailed information on the different financing options available, but also guide you in your choices and help you obtain the best financing conditions for your real estate project.

Simulations are generally based on assumptions and therefore do not constitute an offer of credit or a guarantee of financing.