When subscribing to a mortgage, your financial situation will be scrutinized by the bank. According to some popular beliefs, earning a minimum wage is an obstacle to the realization of a real estate project. And yet, that is not entirely true. Because the bank will mainly analyze your borrowing capacity. If this is sufficient to pay your credit every month, you remain eligible.
Each year, a revaluation of the minimum wage is carried out by the State. In January 2020, an increase was applied bringing the amount to 10.15 euros against 10.03 euros in 2019 per hour. From now on, the monthly minimum wage is 1,539.42 euros for 35 hours of work. This salary makes it possible to obtain a mortgage. When subscribing, it is your entire financial ecosystem that is taken into account by the bank and not just your salary. Among the most important points are your borrowing capacity and the sustainability of your income. By way of illustration, a borrower on a CDI earning 2,500 euros each month, but having several consumer loans in progress, does not have the same chances of accessing a mortgage as another subscriber on a CDI earning a minimum wage, but without no outstanding debt. It is important to keep in mind that the bank needs to be reassured about the solvency of a borrower. A person working as a civil servant or on a permanent contract is not on the same footing as a self-employed person or the liberal professions whose income is random and uncertain.
Let's keep our feet on the ground. Earning a minimum wage and having a permanent contract do not mean that you are directly eligible. You still have to prove your motivation and goodwill to the bank. As you should know, access to advantageous conditions on the occasion of a mortgage is conditioned by the amount of the personal contribution put on the table, which represents at least 10% of the purchase price. Certainly, with a minimum wage, it is difficult to have a generous savings account. However, make the gesture by trying to finance at least the additional costs. This financial effort will prove to the bank that you are a serious candidate with the ability to save.
No question of ignoring borrower insurance when you are considering a mortgage. This coverage not only protects you, but it also reassures the banks if you find yourself unable to repay your credit in the event of unemployment or disability. Since the entry into force of the Lagarde Law in 2010, consumers have the possibility of choosing another insurance than that offered by the bank. This is an opportunity to find the best coverage at great prices. Among the essential guarantees to subscribe to are death insurance and disability guarantee. It is also advisable to add job loss insurance which assumes the entire repayment of the loan following a loss of income.
In 2020, a couple earning a minimum wage has total income of 3000 euros. This is more than enough to access a mortgage. However, it is advisable to first pay off all outstanding loans before starting so as not to increase the debt ratio. Remember that this must not exceed 33% so as not to put a household in a delicate financial situation after the payment of its loans. Ideally, choosing a quality and well-located property will also work in your favor, as the bank may request a mortgage on it. For this guarantee to be interesting for her, the property must also be easily marketable in the event of a possible seizure.
