Loan offers for young people
Many banks are developing their offers to attract a population of young borrowers, attracted by the potential they present. These real estate loans for young people are mainly intended for first-time buyers and offer many advantages.
Some examples of banking offers
The LCL, for example, offers a 50% discount on its registration fees to purchasers under the age of 36 as well as special rates for borrower insurance.
The CIC, meanwhile, offers advantages to purchasers under 28 years.
As for the Banque Populaire des Alpes, it offers first-time buyers of up to 31 years of age a preferential rate, free application fees and no prepayment penalties. This last advantage can be very important in view of a resale before the end of the loan.
8 good reasons for a young worker to become a homeowner
1st reason: banks lend on long terms
Does having the future in front of you mean that one can commit oneself for long periods of time? Yes according to the banks that easily accept to lend over 30 or 35 years. A credit over a period of 35 years will result in a significant credit cost, but it can make it possible to make the apartment accessible which would otherwise be expensive. Indeed, rising real estate prices have put a certain number of housing units out of reach of young people.
2nd reason: real estate loans for young people are flexible
Are you afraid your situation will change? Never mind, new mortgages are flexible. Modularity is one aspect of new, more modern loans. It allows to suspend, decrease or increase your monthly payments.
3rd reason: rents are expensive
Depending on the region in which you are located, it is possible that the rents are overpriced: outside Paris intramural where the price of rent per m2 can reach 30 €, which is still 1500 € per month for a T2 of 50 m2, prices go from 5 € / m2 the most economic cities to 20 € for the most expensive cities. It will be understood, depending on where you live, tenant is not necessarily the right solution.
4th reason: build wealth and prepare for the future
Buying a home to be your main home is a great way to build capital. Even if you think you sell it after a few years, the value increases over time, you have every chance to make a good deal … provided you buy the house at the right price.
5th reason: you do not pay every month for lost funds
By remaining a tenant, you will pay each month lost funds rent to your landlord. A quick calculation shows that a rent of 500 € per month will cost you the trifle of 30 000 € after 5 years. Part of this sum could have been used to amortize the capital borrowed.
6th reason: take advantage of low rates
Despite a rise initiated in December 2011, interest rates remain historically low. This is the time to enjoy. If you go up a base point, your credit will cost you much more. To illustrate this example, note that for a loan of 150 000 €
To decide on the duration of your credit, consider making some simulations to determine the capital to borrow in your case.
- Calculation of borrowing capacity: make a simulation
7th reason: benefiting from accession grants for young workers
Public authorities encourage homeownership and assisted real estate loans are offered to young workers.
The enhanced zero rate loan
This is the best known and most important device. Entirely modeled in January 2011, the enhanced zero rate loan for first-time buyers is a boon for all young workers.
The social loan
This is not the most important help, but it is a home loan that allows young workers to qualify for personalized housing assistance (APL) based on their income levels.
Think about the housing savings loan, especially if it comes from a CEL or the employer loan if you work in a company with more than 10 employees.
Obstacles to overcome
In general, the young asset seeks to buy his apartment without personal contribution. To do this, you have to convince the bank that even if you do not have capital, your file is good. This will require that all elements of your loan application are favorable, including the debt ratio and bank statements.
In addition to this, there is sometimes a professional situation that is sometimes unstable.