Like many sectors of activity, real estate has been heavily impacted by the Covid-19 crisis . Access to property is therefore still popular, and using a broker is the best way to achieve this.

 It’s an opportunity to build up assets, stop paying rent, and be free to carry out renovations as they wish… all reasons that encourage them to take the plunge. Borrowing rates have never been lower. However, accessing property is not an easy path, and good preparation is essential to complete your project. These few tips should help you!

1. Assess your borrowing capacity

Calculating your borrowing capacity is an essential prerequisite for preparing a mortgage application. For the uninitiated, borrowing capacity corresponds to the amount you can obtain to finance your real estate project.

2. Improve your borrower profile

In the context of a mortgage, the financial conditions of the loan depend directly on the borrower’s profile. This term covers all the characteristics that the bank will analyze to propose a financing offer and set the terms and conditions, and therefore the interest rate.

Therefore, to determine the terms of the credit (interest rate, guarantee requested), the bank will be required to assess the risk.

The more likely it is that the financing will be repaid without any problems, the more willing the bank will be to offer its best financial conditions.

To maximize your chances, it’s best to have a stable job with at most a few years of seniority. Here, the bank looks at the sustainability of your income.

It’s important to remember that while it’s best to have a permanent contract (CDI) to borrow, self-employed, temporary, intermittent, and other contract workers also have the opportunity. In short, there’s no perfect profile; you simply need to provide the lending institution with the certainty that you’ll be able to repay the entire amount they lend you. So avoid being regularly overdrawn, as your bank statements will be scrutinized to understand and analyze your financial behavior.

Also, regardless of which banking institution you apply to, providing personal capital as a contribution is always welcome. This nest egg is proof of your good financial management. Being able to contribute around 10% is generally considered a good start. It will reassure the bank about your financial management and reduce risks for the borrower.

3. Create competition between banks

Purchasing a home is a significant investment. With a loan, it commits the borrower for many years. It’s important to know that not all banks offer the same rates. Some offer very low rates to attract new customers, but others may offer even more advantageous terms for your project. Contacting several institutions generally allows you to obtain better deals.

Returning to your banker with a better offer from the competition makes negotiations much easier, as the latter is obliged to align with the latter in order to keep their client.

However, analyzing the credit market and applying for credit from a variety of institutions can be time-consuming and tedious, so contacting a broker may be a good idea.

4. Use a broker

For a borrower, comparing all the loan offers on the market can be a real headache. It requires not only time but also experience to avoid pitfalls, and this is precisely where a mortgage broker comes in.

An expert in the market, he knows all the intricacies of the banking world. He will know how to target the most suitable banking partner, identify the most profitable financing options, and what rate to negotiate based on your file. In fact, he generally obtains a lower credit rate than you would have negotiated.

In short, the real estate broker provides personalized support throughout all stages of your real estate project. Their expertise saves you time and reassures banks through their intermediary role.

Some agencies, like Helloprêt, support you throughout your real estate project without you having to leave your couch. Fully digital, the team provides users with an online mortgage simulator that allows them to estimate the best rates for their applications in just a few minutes

5. Take out borrower insurance

Mortgage loan insurance protects you in the event of life’s uncertainties (death, disability, incapacity, job loss). If the worst happens, the insurance replaces the borrower and reimburses all or part of the loan. It is not mandatory, but given the significant amounts of mortgage loans requested, lending banks systematically require future buyers to take out insurance.

Since this insurance can cover up to 30% of the total price of the property, it is possible to negotiate it. To do this, we recommend obtaining personalized mortgage insurance quotes before your first meeting with your banker. By doing so, you send a positive initial message: you know your rights, you have worked diligently on your file, and you are familiar with the different elements that make up a mortgage. You will come across as serious, and this will demonstrate your commitment and motivation to the success of your real estate project.