The times seem far away when the banks financed without difficulty the totality of the real estate investment, that is to say the acquisition of the housing itself and the additional expenses of which the notary fees and bank guarantee costs. The continued rise in real estate prices justified this risk taking.
Banks: priority to own funds?
Since the public authorities are forced to replenish the capital required for their equilibrium, the banks are trying to cope with their losses. It must be said that the stability of the banking system itself is at stake.
It should be remembered that the initial objective is no more and no less to avoid the bankruptcy of the bank. Ensuring good equity must be a shareholder’s duty.
Less risk taking in the future
Banks are therefore obviously less inclined than in the past to take risks in mortgage lending. Risk analysis services are more demanding and borrowers’ files must not contain flaws in order to obtain a favorable agreement.
The maximum debt ratio must be respected
No largesse to expect from the point of view of the maximum debt ratio. This must have remained within the limit of 33% and the “remainder to be lived” will have to be sufficient to face all the current expenses which awaits the household once paid the whole loan monthly payments.
Have a personal contribution to finance notary fees
Financing at 110%, ie covering the purchase and notary fees are now rarely accepted by network banks. If you have to finance notary fees, you will have to turn to specialized institutions that are more flexible.
It is thus asking the borrower that he has a personal contribution covering the notarial and guarantee costs is about 9% of the purchase price (7% for notary fees and 2% for warranty costs).
Attention to the maintenance of bank accounts
Finally, in addition to respecting the debt ratio and having sufficient personal support, the borrower will also have to prove that he knows how to keep a budget. The bank will therefore sift bank statements of the last three months of co-borrowers. In other words, it is desirable that the balances be credited and even more so that there is no rejection of the levy.