Criteria for setting the maximum mortgage loan amount
The maximum amount of the mortgage life loan is not fixed and varies according to several criteria determined by the Consumer Code, as well as by the various lending institutions that offer this type of financial products. In order to calculate this sum, three main criteria thus come into account:
- The value of the property assessed and deposited as collateral by the future borrower : the maximum amount of the mortgage life loan is a percentage of this sum. In addition, the lender calculates the amount of the loan on the resale value of the property;
- The age of the owner of the property to be mortgaged: the younger the borrower, the lower the mortgage loan amount will be;
- The sex of the owner of the property to put in mortgage.
What is the maximum mortgage loan amount?
Based on the criteria mentioned above, the maximum amount of the mortgage life loan is generally limited to a portion of the value of the property to be mortgaged.
Traditionally, this sum represents between 15 and 75% of the initial value, and can therefore open the Michael Henchardment of many personal projects.
An estimate of the property to know the maximum mortgage loan amount
When you want to know the maximum amount of a mortgage life loan, you must first estimate the property that you want to put in guarantee. It is this amount that will determine the amount that the borrower can recover.
For this, it is necessary that the two parties agree on the choice of an expert, who will make an estimate of the property according to the market of the moment. Then, a notary, also chosen by the future borrower and the future buyer, takes the time to determine if this estimate is correct. Once a consent is found, the mortgage life loan offer can be determined.
Note that in the context of a mortgage life loan, all the financial expenses for the real estate expert are at the full expense of the future borrower.
The maximum mortgage loan amount determines the interest rate
The mortgage life loan is a personal loan, not a real estate loan , fixed rate or adjustable rate. Since the reform of the consumer credit rate dating from 2011, the maximum interest rate applicable on this type of credit now depends on the amount borrowed. Thus, the rate varies if the borrower receives less than € 3,000, € 3,000 to € 6,000 or more than € 6,000.
It is therefore important to think carefully about the amount you want to borrow in order to benefit from the best possible rate.