The home loan, as its name suggests, is a loan that only concerns the financing of housing. (major renovations, purchase of a house or apartment, extension of the house).
The peculiarity of this type of credit compared to all that exists is the amount, often the sums borrowed are greater than 100,000 $. Therefore the repayment period is very long (10, 15, 20 and even sometimes 30 years ).
These credits can be granted by a bank or a credit organization.
There are many types of home loans and many options that can make your life easier or not!
- The amortizable loan
- The progressive loan
- The modular loan
- The loan in fine
You can borrow an amount at a rate set beforehand by the bank, however in some cases the rate can change over time. Indeed, if you choose a reimbursement with a variable rate, the latter may very well decrease over time and save you money. Very attractive is not it? The opposite can also happen, and most of the time, an obligation to re-negotiate maturities is necessary with the bank or the financial institution. In France, the “option” fixed rate is much more used , this allows to have no surprises and to be able to assess the remaining amount to be reimbursed as well as the exact amount of the monthly payments.
The home loan is not the only loan allowing for the purchase of a property. If the latter is indeed the main loan, the borrower can have access (according to his profile) to other types of loan. Obtaining these varies a lot depending on your social situation! Most often, interest rates are much more advantageous on secondary loans, unfortunately the maximum loan amount is limited.
Here are some secondary loans to supplement the principal sum borrowed:
- The zero rate loan or PTZ +
- Agreed loan.
- The loan for social accession (PAS).
After studying your file, the bank will tell you the maximum amount it can lend you to finance your purchase. This amount is calculated based on your current debt ratio, your debt capacity, your income and the amount of the personal contribution .
To know : In principle, you should not exceed the ratio of 1/3 of debt to your monthly income after tax.
Please note :
- Other costs are added to all this, the administrative fees and loan insurance for example .
- You no longer have to take out the latter with the same credit institution, which gives you an advantage in negotiating with your banker or loan adviser (especially if you are young).