Which bank lends most easily for real estate?
Like 86% of French people (1) with a real estate project, you need a loan to finance it. You are therefore looking for the bank offering the most advantageous loan conditions. Reference on the real estate transaction market, we have selected for you the banks that lend the most easily to invest in real estate .
What questions should you ask yourself before borrowing?
Want to buy an apartment in Collioure using mortgage? The more your loan application is prepared, the more likely it is to succeed! Ask yourself the right questions before you apply for credit and provide a precise answer.
How to calculate your repayment capacity?
Calculating your repayment capacity consists of determining the maximum allowable amount for the monthly payment of your future mortgage. To keep your budget balanced, your debt ratio must not exceed 35%.
Debt includes all recurrent charges: monthly payments for outstanding loans (car loan, consumer loan, alimony). Your maximum capacity to repay a new loan corresponds to the margin that separates you today from the maximum indebtedness.
Example of repayment capacity calculation:
If your income is €2,500/month, your debt must not exceed 35%, or €875. The reimbursement of a car loan of up to €180/month, to which is added €60 for the reimbursement of a personal loan, takes your current debt to €240/month (i.e. 9.6%). Your ability to repay a new loan is therefore €635 (875-240).
Should the delegation of borrower insurance be used?
Yes ! Using the delegation of borrower insurance allows you to take advantage of the competition to obtain the best guarantees at the best price ! Banks subject the granting of a home loan to the subscription of insurance against the risks of job loss, illness, disability and death.
In addition, since the Hamon law of 2015, the bank cannot, in the context of a mortgage, impose its insurance on you. Take advantage of this freedom to choose the most competitive insurance!
What are the specific services offered by the banking institution?
When selecting the banking institution for your mortgage, certain points and services should be closely scrutinized.
Obtaining a good mortgage is not just about an advantageous rate! These specific points and services relate as much to the credit itself as to the holding of a bank account in the establishment, they include:
- Amount of loan application fees;
- Postponement of mortgage maturities;
- Adaptation of the amount of the installments and the duration of the loan;
- Procedures for opening the bank account;
- Average level of bank charges in the institution;
- Access or not to a free credit card;
- Existence or not of attractive financial products.
Which banks are the easiest to lend?
Borrower, you can turn to banks or credit companies . These establishments engage in strong competition in terms of rates, but not only. Know how to take advantage of it! Among the institutions lending most easily today in the context of a real estate project, are the banks:
- In line ;
A major national bank, the BNP offers a 50% reduction on the application fees for its home loans. The request must be submitted online as well as in an agency.
Subsidiary of a large mutual bank (Credit Mutuel), it offers to adjust your monthly payments to the evolution of your income. CIC is now offering an APR(*) of 1.54% over 20 years.
As a national bank, Société Générale offers real estate loans at fixed rates, with repayment levels, flexible monthly payments during the loan and the possibility of extending the due date.
Online bank, regularly awarded for the quality of its services and low bank charges. The credit application is made 100% online and gives rise to an immediate response. Boursorama now offers an APR(*) of 1.51%: a fixed rate over 20 years, insurance included.
Crédit Agricole operates by regional bank. Its real estate loans from the "Facilimmo" family offer maximum flexibility for all types of projects (main or secondary residence, purchase-resale, rental investment).
The savings bank
At the forefront this year in real estate loans, the Caisse d'Epargne lends from €50,000 to €500,000 repayable over 5 to 25 years. Its website allows you to file your request and get a response in 5 minutes. Is the answer favourable? A Caisse d'Epargne adviser, near you, will accompany you in all your steps.
(*) APR: Global Effective Annual Rate
What are the criteria for banks to lend easily
There are no specific criteria defining which banks lend most easily, as this can vary depending on the lending policies of each bank.
However, in general, banks that have less stringent eligibility criteria and offer credit products tailored to the needs of customers can be considered more accessible.
Online and alternative banks can also be more flexible when it comes to lending, as they have lower cost structures than traditional banks. It is therefore important to research and compare different loan options before making a final decision.
How to set up your real estate investment project
When you submit a credit application, your borrower profile is analyzed with a magnifying glass. The stronger your financial situation, the lower the risk for the lender.
The solidity of your file is judged by the importance of your contribution , the regularity of your income and the good maintenance of your bank accounts .
The setting up of your real estate project is based on the presentation of a transparent and solid investor profile. A mortgage application cannot be improvised.
In addition to the compromise (or promise of sale) of the property concerned, provide each bank adviser with all the elements - and their copies - necessary for editing a loan offer:
- Identity documents of the borrower and any co-borrower;
- Family booklet or PACS certificate;
- Proof of address less than 3 months old (energy bill);
- Employment contract (CDI);
- Proof of income (salary slips, pension certificate, property income, etc.);
- Two last tax notices;
- Evidence of your personal contribution;
- Three last account statements (avoid overdrafts!);
- Proof of any outstanding credits.
Life project or rental investment, real estate always mobilizes significant funds. If it is an excellent way to complete the financing of the acquisition, the mortgage must be handled with discernment: it commits you for a long time!
If you don't feel like a born negotiator, don't hesitate to call on a broker. The latter will be able to take into account your personal situation (contribution, income and amount of investment) to identify the bank best suited to your real estate project.
In any case, the selection of a bank and a credit offer is case by case: it is a question of opting for the solution tailored to your borrowing profile and your real estate investment project!
Boost your chances of getting a loan easily: tips to improve your credit score and secure your loan
To increase your chances of getting a loan easily, it is recommended that you take the following steps:
- Improve your credit score by paying off debts on time, reducing credit card balances and avoiding excessive credit applications.
- Provide additional collateral such as real estate or term deposits to strengthen your loan application.
- Prepare a clear and complete loan proposal that explains the reason for the loan request and how repayment will be made.
- Compare loan offers from different banks and choose the one that offers the best terms, including interest rates, fees and repayment terms.
It is important to note that even with these tips, getting a loan easily depends on many factors, such as the bank's lending policy, economic conditions and the borrower's financial situation.
To remember :
- Your repayment capacity corresponds to the maximum amount of your future monthly mortgage payment;
- The rate to look at to compare two loan proposals is the APR;
- A bank cannot impose its borrower insurance on you.