Especially where higher bonus payments or one-off payments such as Christmas bonuses await, the inflow of capital can be invested in debt relief for your home. The special repayment allows repayments outside the defined repayment schedule.
Partly variable loans allow more flexibility in repayment, but can also quickly become more expensive when it comes to interest. An aspect that you have to keep in mind.
Not all borrower profiles have the same characteristics. Here are the profiles to which the banks make the soft eyes.
A mortgage generally relates to tens or even hundreds of thousands of dollars. The contractual issues are therefore important. For borrowers, the objective will be to reduce the total cost of their mortgage financing, while for lending institutions, banks, the objective will be different. Banks are above all commercial enterprises which must generate a turnover. Thus, in terms of home loan, they select the files that present the least risk. In fact, if a borrower defaults, the bank runs the risk of not being reimbursed.
Job security, an asset for civil servants
To avoid this, bank advisers fill out a complete file on loan applicants. Because the risks will not be the same according to the professional activity of the borrowers and also according to their capacity to manage a budget. If it is not compulsory, the CDI is essential. The bank needs to ensure that borrowers’ income will be regular. It is therefore easier to access a loan with a stable professional situation.
Young first-time buyers have a card to play
For all these reasons, civil servants have an advantage over private employees. On the one hand, job security is an asset for this borrower profile which reassures lenders.
Since 2016 and the incredible drop in mortgage interest rates, banks have changed their commercial policy somewhat. Young households wishing to acquire their first main residence are now a priority target. Thanks to low rates, banks can publish attractive offers to their destination. Banks hope that once their credit is paid off, borrowers will switch to other financial products.
Likewise, if the family expands, the bank will be ready to offer special booklets for minors. First-time buyers therefore have the cards in hand to play the interbank competition. In addition, if they are civil servants, this status can make the difference.