To obtain a mortgage, the profile of the co-borrower (s) is a determining condition. The more “good” your profile, the more opportunity you will have to negotiate your loan.
What is the ideal profile for negotiating a mortgage?
Before granting you a mortgage, the bank will determine the level of security guaranteed by your profile. The latter will, therefore, learn about certain aspects of your personal and professional life.
Your professional situation is the first element that the bank will ask you to specify. In order to borrow at the best rate, it is preferable to be on a permanent contract with more than one year of seniority.
However, being on a permanent contract is not essential to obtain credit. Indeed, temporary workers or people on fixed-term contracts of more than 3 years can also borrow (under certain conditions).
Determine your repayment capacity
Your income and assets will also be studied by the bank to determine your repayment capacity. On the basis of your income, the bank will calculate your debt ratio by integrating any other loans already in progress and will determine your ” remainder to live “. This is the money available each month, once the monthly loan payments have been paid.
The amount of the remainder is important for you as for the bank. It helps to determine if you will have enough money for everyday life. Thus, the amount of the remaining living will depend on your family situation.
Finally, the amount of personal contribution can allow the bank to know your savings capacity.
Be aware that in addition to your profile, the property you wish to buy will also be studied. Indeed, the bank will seek to determine its value and therefore it is potential in the event of resale.
What role will your profile play?
Your borrower profile, in addition to being a condition for obtaining a loan, will have an impact on negotiation. In order to implement this negotiation, it will be easier to hire a broker who knows much better the trading potential and the best rates you can get.
He will also be able to advise you on how to lower the entire cost of your credit by negotiating several aspects: the interest rate, the delegation of insurance, the administration fees or even the prepayment fees.
In conclusion: It is, therefore, important to look at your borrowing profile and to call on a broker before starting your process. You will maximize your chances of getting the best credit deal.