When you want to realize a real estate project as a couple, the use of a bank loan is often essential. And when we talk about mortgages, the professional situation of the borrowers will have a major impact on the outcome of the request for financing. To limit the risks, banks tend to favor stable jobs. So what about a couple with a permanent contract and a fixed-term contract? Explanations.
A real estate loan is a loan of money used to make a real estate purchase or a construction. Its amount is more than 75,000 euros and the repayment period ranges from 10 to 25 years, or even 30 in some establishments. Thus, the mortgage is a loan of great importance, both in terms of amount and duration. This is likely to increase the risk of non-repayment that banks try to limit through strict conditions such as the professional stability of the borrower. People with stable employment represent the best profiles insofar as the risk of job loss and therefore inability to repay is low.
These profiles are mostly civil servants and employees with permanent contracts. People with precarious jobs will therefore find it difficult to obtain real estate financing without presenting the maximum guarantee to the bank. This is how a person with a fixed-term job will count on the support of his spouse with a permanent contract to borrow in order to buy a house.
Taking out a mortgage with a CDD and a CDI is quite possible for a couple. Indeed, although the fixed-term contract is considered a precarious situation, the presence of a permanent contract makes it possible to catch up. However, it should be noted that income from fixed-term employment will not be taken into account in setting up the financing. The bank will only take into account the co-borrower's salary to assess the couple's borrowing capacity. This same salary will therefore determine the amount that the co-borrowers will be able to borrow from the bank.
However, the situation of the co-borrower on fixed-term contracts will be considered during the financing feasibility study and in the context of debt solidarity. If the borrowing capacity of the co-borrower is not sufficient for the project, the couple is able to wait for the evolution of the professional situation of the one with a fixed-term job. The other solution is to continue with the financing application process, taking into account only the income of a single borrower and thus reduce the amount requested.
Professional stability is an important criterion when applying for credit, but it is not the only one. Indeed, several other parameters allow the bank to assess the solvency of the couple. The most common is the possibility of making a substantial contribution through savings. By paying at least 10% of contribution to the bank, the borrower will take care of part of the financing of his project, which is reassuring for the bank. To take advantage of a loan with attractive conditions, it is also important to send a good image back to the bank. To do this, you just have to show him that you are serious about managing his finances.
You should avoid bank overdrafts and prove your savings capacity. If you want your file to be as attractive as possible, take the time to put your finances in order. Moreover, as each bank has its own way of interpreting the creditworthiness of their borrowers, it can be beneficial to compare credit offers online to take a look at all your possibilities.
