Negotiating a mortgage during a parental leave: what are the difficulties?
Obtaining a home loan during a parental leave is not always easy, so it is important to solicit several credit institutions to facilitate obtaining financing and negotiations.
Undertake a mortgage on parental leave
Many French people want to buy property and parental leave can free up time for administrative procedures such as soliciting a bank loan. Getting a home loan is possible when you are on parental leave but not all banks accept this financing, some are more attentive than others on the situation of the borrower or the couple. The presence of at least one ongoing CDI contract is essential, for example a household with a fixed-term contract and a parental leave will find it more difficult to find a financing solution.
It is therefore important to take extended steps, ie to solicit several banks at the same time to get an overview of the conditions. The simulation will provide an idea of current rates but a feasibility study will be needed to validate the project, which involves providing the necessary supporting documents.
Solicit a broker for his parental leave loan
Brokers can provide real added value in a home loan search, especially if one spouse is on parental leave for a number of years. The broker is in fact an independent structure working under mandate, it is thus more involved in the search for a credit contract offer and knows perfectly the criteria of banks and credit institutions. This professional is paid only if the file is financed, he makes every effort to obtain a bank loan and especially to negotiate attractive terms.
The advantage of the broker is that he will not be limited to negotiating the rate, he will also negotiate interesting conditions such as insurance of the loan or the early repayment benefits, important points to anticipate a possible future unforeseen or further decline in rates allowing the renegotiation of the home loan. Finally, the broker is also professional and can provide helpful advice, especially if the borrowers are not necessarily experts in real estate financing.
Simulate a mortgage online
No need to travel to an agency, multiply appointments and provide extended checklists for each bank. It is possible to carry out a real estate mortgage simulation online, thus demarcating brokers, banks and credit institutions to obtain its financing by being on parental leave.
The advantage of the simulator is to be offered both free and without commitment, this tool makes it possible in particular to compare the offers on the same basis, it is easier to negotiate the best rate and validate its project of homeownership . It is important at this point to inform all household income and expenses, as financial organizations need to have a complete picture of the claimants’ situation.