When applying for real estate financing, the bank will ensure that the borrower has all the resources necessary for the proper repayment of the credit. These resources are generally more important for a couple of borrowers and can facilitate obtaining a loan, especially if they have a permanent contract. So, do you have to be a couple to obtain a mortgage?
Basically, mortgage loans are one of the cheapest forms of loan procurement, since their security is guaranteed by pledging a corresponding property. With a mortgage lending value of up to 60 percent, you usually get a very low interest rate, since with higher mortgages the risk for the lender increases, an interest surcharge is charged for mortgages over 60 percent.
It should also be noted that a mortgage loan is usually a long-term contract and that termination can usually only be carried out at very high costs. It is therefore advisable to take out prepayment protection, which enables, for example, a free change of debtor, a pledge or the transfer of the mortgage loan.
Mortgage loan: more collateral for two
According to a recent study, 68% of borrowers with a mortgage are in a relationship.
This figure shows that on average two borrowers out of three take out a mortgage with the help of their spouse and can be explained by the fact that a co-borrower providing additional guarantees improves the chances of obtaining financing.
However, a contract of employment in CDI is generally necessary for the couple in order to bring enough guarantees for the home loan.
Mortgage: older couples
The study also shows that if we focus on the oldest households (over 60), the proportion of couples is even higher and reaches 73%.
This figure is the same as for middle-aged households (30 to 39 years) and also reaches 73% but gradually decreases between these two brackets.
Conversely, this study shows that only 57% of borrowers under the age of 30 are in a relationship. This figure can be explained by the fact that the young age of the borrowers does not necessarily allow them to have found a co-borrower but also by the fact that at the start of their career it can be difficult to obtain a mortgage.
Real estate purchase: favored couples
With the results of this study, it is possible to demonstrate that a couple household will find it easier to obtain a mortgage than a single borrower who must bear all the risks.
A couple’s household will be able to spread the risk and better prevent them from the fact that their overall income will generally be higher. Also, the contribution of the loan can be more important which can allow to negotiate its credit in good conditions.