Loans
Partners
Our 2 partners are available to help you with your financing arrangements :
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In the Côtes d'Armor and Ille-et-Vilaine departments |
In the Finistère and Morbihan departments |
With or without a deposit
A good deposit to aim for is around 25% of the total project price.
However, you can still borrow money without providing a deposit. These 100% loans have increased in recent years. It is even possible to get 110% loans to cover the cost of the entire project, as well as additional expenses.
The various loans
Interest free loan
This is an interest free government loan that is granted as an advance. To take advantage of this loan, your household income minus allowances has to fall within certain limits that are determined depending on your family size and the geographical location of your property.
Home savings loans
These loans aim to promote savings so that you can buy a new house or second home. You can use your home savings account (plan d’épargne logement or compte épargne logement) so that you can borrow money over 2 to 15 years
1% home loan
This loan is granted to people working for companies with at least 10 employees. It can be used to finance the purchase of a plot and the construction of the house. If you want to take out this loan, you will need to contact the human resources department at your company or the works council. The loan is reserved for first time buyers and for people who are moving for professional reasons.
Civil servant loans
If you are a civil servant or in a similar category, you cannot take out the 1% home loan described above. However, you can contact the Crédit social des fonctionnaires (CSF). The CSF can help you find a suitable loan at very good rates over 5 to 35 years, and can finance up to 110% of your project.
Calculating the additional costs
Administrative charges
These amount to around 1% of the loan amount.
Insurance
No bank will loan you money if you do not take out life and critical illness insurance.
This usually amounts to around 0.4% of the loan amount. Income protection insurance is optional.
Fixed or variable rate ?
If you take out a fixed rate loan, you will know the exact amount of your monthly repayments from the start to the end of the loan. If you take out a variable rate loan, the monthly payments will vary according to an index decided upon when you take out the loan (normally the Euribor reference rate). The monthly repayments could remain stable, but a potential increase could have an impact on the term of the loan.
Guarantees
To protect itself against the risk of outstanding payments, the bank will need guarantees: a mortgage or a bond from a specialist company.
Finalised loan offer
Once you have decided who you want to borrow with, you have to fill out and submit your official loan request. You will then receive a loan offer. You have to wait 10 days before you can accept it. This cooling off period has been set by law to protect borrowers.
If you accept the offer, it is considered that the loan agreement already exists. You will therefore have successfully completed all the necessary steps !
TO FIND OUT MORE, PLEASE CONTACT ONE OF OUR PARTNERS :
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