Obtaining a home loan with a salary at the minimum wage is quite possible, it is above all the ability to borrow that will make this project possible.
Borrow from the minimum wage: what you need to know
Access to property will require filing a mortgage loan application with a bank in order to obtain financing. The financial institution will systematically carry out a study of the borrower’s solvency and the first stage of this study will concern the estimation of the borrowing capacity. It is simply a matter of taking into account the salary of the applicant and checking his debt ratio. You should know that it is not the amount of salary that matters, it is above all the part that can be devoted to the reimbursement of one or more monthly payments. A candidate who receives a minimum wage can easily obtain a mortgage.
You should know that in terms of bank credit, it is possible to devote up to 33% of your income to repay various monthly payments. If the borrower does not repay any credit, he can therefore devote up to a third of his salary to repay a monthly mortgage loan. Obviously, the other requirements of the bank must be respected.
Home loan conditions with a minimum wage
If the salary is not necessarily important, it will still condition the maximum amount that the borrower can get depending on the repayment period. It is therefore possible to estimate the capacity to borrow and to project over a period, which makes it possible to inform the borrower of the overall envelope that he will be able to obtain, this then facilitating the search for real estate. It is also necessary that the minimum wage is attached to a contract or equivalent (official holder), note that the presence of a co-borrower (spouse) in situation can affect the feasibility of financing.
The bank will therefore take into account the salary but also the expenses of the household, the possible number of children but also credits in progress. All this will be specified during the borrower’s funding request, but the borrower must provide supporting documents: salary statements, account statements, tax notices, etc. These documents will allow the bank to have an overview of the applicant’s situation and to be able to inform him of the possible solutions. Note that for households earning modest incomes, it is possible to benefit from the zero rate loan but also from other devices such as the loan for social accession or the employer loan at 1%.
Simulate your mortgage online
It is possible to simulate a mortgage loan request with a minimum wage, this allows you to be informed of the current conditions of the banks but also and above all of the feasibility of the project for the candidate. As a financial brokerage center, offers you an online credit simulation free of charge and without obligation. This makes it possible to better compare the banks’ proposals and to obtain financing more easily.