Public services have deployed some devices to enable low-income households to become owners. Among them is the Social Accession Loan (SAP) which, like the loan agreement, allows to reach the APL to facilitate repayment of the loan. Presentation of the SSP, its beneficiaries and the amount they can claim.

What is the social housing loan?

Available from banks and financial institutions signatories of the agreement with the State , the Social Accession Loan (PAS) is used to acquire a principal residence . It can mean the purchase of an apartment or a house, in the new or the old, but also by the construction of a housing or the realization of works of improvement or energy saving of a minimum amount of € 4,000.

Beyond a few reductions of ancillary costs ( handling fees limited to 500 €, exemption from land registration tax, reduced notary fees), the main feature of the SAP is to allow the subscriber to benefit from the APL, while long repayment of this loan .

This allowance is paid systematically directly to the banking institution from which the beneficiary has taken out his loan. It is deducted from the amount of the loan’s monthly installment taken by the bank.

Its amount depends on the resources of the borrower. Its calculation method is complex and the ideal will be to use CAF online simulators.

Naturally, all these advantages involve a counterpart: the SAP is subject to conditions of resources …

Who can claim?

As the name suggests, SSP is intended to promote homeownership for people with modest incomes. The threshold not to be exceeded is set according to the reference tax income, the location and the composition of the family .

The geographic influence is based on the breakdown initiated by the so-called “Robien” rental investment scheme (revised since 2006, 2009 and 2014): A, B1, B2 and C taking the zones according to their local real estate market tension.

Thus, a family of 4 people wishing to benefit from the PAS can not have resources superior to 48 000 € in zone C (Guingamp), 54 000 € in zone B2 (Pornic), 60 000 € in zone B1 (Bordeaux ) and € 74,000 in zone A (Paris).

How much of the funding can it cover?

Like the loan agreement, the SAP can cover the entire financing , with the exception of notary fees.

In April 2017, the reference interest rate for this loan is 0.95%. On this basis, it is then necessary to add the margin of the banking establishments in the limit of these percentages: 3.25% for the loans with variable or fixed rate lower or equal to 12 years, 3.45% for a PAS of 12 to 15 years, 3.60% between 16 and 20 years and 3.70% for a loan of more than 20 years.

With historically low fixed rates, the borrower’s interest in seeking this type of financing lies in the comparison of the total costs of the respective credits by omitting the possibility for the SSP beneficiary to see his total cost of credit decreased. thanks to the benefit of the APL.

Finally, it can also be supplemented by other advantageous devices : the PTZ +, the PEL / CEL, the loan Action Housing, eco-PTZ under certain conditions, etc. By contrast, SSP can not be associated with a conventional home loan.

Note that the accumulation of several loans (PAS, PTZ … or even consumption) should encourage the borrower to consider smoothing the various monthly payments it supports. It is common sense in this configuration to use a broker to carry out this credit restructuring operation.

which involve a small amount of disbursement and do not require credit verification. These payday loans can be interpreted as something that fills the gap between urgent financial requirements and your next paycheck.

Loans without credit verification are short-term payday loans

Most loan applicants belong to the salaried class, but it does not prevent you from availing these loans if you wish to obtain them in a secure format. These loans are characterized due to the brief amount of time involved in the transaction ranging from loan assignment to payment.

How to start

If you have decided to opt for the payday loan, you must be clear about the amount and payment capabilities. As the loan is generally not insured and a credit check is not carried out, most lenders to feel safe require some documentary evidence. So to meet the eligibility criteria: Edit

• Must be over 18 years of age and a citizen of the country from which the loan is requested. This is necessary to overcome legal procedures.
• You must present your recent payment vouchers as proof of your consistent employment. This is a precautionary measure taken by the lenders.
• You must have a bank account to perform transactions without problems, either the loan amount or the repayments.
• You must also present a check with a later date equivalent to the reimbursable amount. In some cases this requirement is optional, since the lack of payment can lead them to collect the check that guarantees the recovery of their amount.

Amount and interest rate

As the name means that the amount involved is less, it is usually less than $ 2000.

The interest rate charged is quite high. This is because these are very short-term payday loans and are offered unsecured and do not require credit verification. Therefore, the interest rate is great to manage the trust in the minds of lenders about your investment. However, the amount and the interest rate vary from one lender to another. To get what suits your needs and capabilities, you must perform a thorough search on the internet.

Uses and advantages

The loan can be used to meet emergency finance requirements. The amount can be used to meet the payment of the overdue rent, payment of medical bills or any small problem that may arise immediately.

Advantage

This type of loans have certain advantages:

• The loan is approved in most cases within 24 hours, so you have cash at your disposal at any time.
• It does not take much work, since there is no evaluation. No credit verification or verification is required. All you need to have is proof of employment and / or income.
• It can be loaned to employees or self-employed workers.
• You do not have to withdraw money from your other investments for a small amount, since your emergencies are met by small loans without credit verification.

In conclusion, loans without credit verification act as the saviors of the financial crisis. However, loans must be obtained only if there is a real need, since the amount must also be repaid.

At a minimum, the weight of insurance represents 25% of the total cost of the mortgage, but can reach one-third. That is why it is essential to choose it carefully, while remaining properly protected throughout your loan. Is it better to choose the offer from your bank or another bank? Decryption of issues.

What is a “group insurance offer”?

The group insurance is a collective offer, proposed by the lender: already negotiated with an insurer , it lists the borrower in a category and applies the associated rates by age group.

The advantage of this solution is that the risks are shared . Collective, it also benefits from a real economy of scale – because of the large number of people who subscribe to it.

A reduction in the cost of insurance even more significant for borrowers whose age reaches the ceiling of the tranche to which they belong. In effect, they benefit from the same rate as borrowers who are 8 years younger, but categorized in the same bracket.

In addition, it is easier to subscribe, because the formalities are simpler to carry out , the estimate being established directly by the financial adviser who studies the loan application.

What is the difference between group insurance and delegated insurance?

Unlike group insurance, individual insurance is based on a personalized risk study . In other words, each borrower, depending on his personal situation, benefits from a single insurance cost.

Therefore, a young borrower will have an interest in studying the offers in delegation, because the age remains one of the main criteria of tariffing.

A comparison, now facilitated by the requirement to produce a standardized European fact sheet (FISE) with any mortgage loan offer. Indeed, since October 1, 2015, all banks must hand – ahead of their loan offer – personalized card on which guarantees include up to 15 selected on the list of 26 defined by the CCSF (Sector Advisory Committee Financial).

Why is delegated insurance more relevant?

As its name indicates, delegated insurance is an offer external to that of the bank. It is built on the basis of finer criteria : obviously, age and profession, but also the amount borrowed and the state of health, are also taken into consideration. The institution simply evaluating with greater precision, the risk factor that you represent.

For example, a 30-year-old borrower who does not have a health problem and who does not smoke is a secure profile for banks. Not to mention that its income is likely to rise. Typically, a case that should study more closely, the conditions of delegation to optimize the cost of its insurance borrower !

The Annual Effective Rate (APR) is the interest rate that directly influences the total cost of credit. A percentage rigorously framed by the law which owes its qualifier “global” to cover both the basic interest rate, the operating costs of the bank and the insurance premiums associated with guarantees. That’s why it’s different for different institutions.

What is the evolution of the rate?

After reaching the record low of 1.31% in November 2016 , interest rates have been rising steadily over the last few months. According to the CSA funding observatory, the average level was 1.34% in December 2016 and 1.49% in February 2017.

In March 2017, the average rate was 1.51% : 1.36% on loans over 15 years, 1.57% over 20 years and 1.84% over 25 years. In April 2017, these rates will mark a new rise. Nevertheless, this movement remains reasonable: the current levels (beginning of April 2017) correspond to those of July 2016, a period considered “particularly favorable to the realization of real estate projects by households” , as underlined by the CSA Observatory / Housing Credit .

In the coming months, interest rates are likely to continue their recovery : professionals estimate that the average rate of 2% excluding 20-year insurance could be crossed this summer or September 2017. A trend that risks s in the fall, with banks that will certainly have achieved their commercial objectives.

How to know the rates charged by the banks?

As mentioned in the introduction, the APR is a “global” rate that includes three separate charges, two of which are directly fixed by the lending institution. Therefore, there are disparities between the different structures . Not to mention that some of them will favor certain audiences over others according to their commercial policy.

To know the rates charged in banks, it is therefore advisable to visit their regional sites , because not all borrowers benefit from the same rates, whether they live in Bordeaux or Lille: bank rates do not necessarily change homogeneous way.

For example, the West region and the North region posted overall lower regional scales last February, which was not the case for the Mediterranean region. However, the latter still presented some of the most competitive rates!

How can the broker advise you?

Given the constant and geographic fluctuation of interest rates, the assistance of a credit broker helps to optimize the chances of forming a good financing plan. Indeed, as a business provider, this professional has a rate grid , already negotiated, from its partner banks. In fact, it already has, from your first meeting, valuable information to formulate a first advantageous offer.

A high fork that he can present to you without risks and on which he will work to transform this first approach in good, even excellent, financial arrangement . For this, depending on your profile, he will immediately know which establishments are most likely to make you the best offer.

Then he will negotiate the various key points of the proposal by highlighting the strengths of your file. Because, beyond the interest rate, there are a large number of elements that directly influence the total cost of your credit, like borrower insurance.

Today, the combination of several factors favors banking mobility : the emergence of online banks multiplying the number of offers and a legal framework protecting the consumer / borrower. Let’s study together the case of a person wishing to change bank without mortgage loan and the case of another, with a loan already subscribed.

Case 1: The client has no real estate loan in progress

Should he contact his historical bank?

Do you have a current account and savings solutions in a bank and you are considering a first real estate purchase? The first step is to contact your institution, so that it makes you a proposal.

Rich with a lot of information about your profile (evolution of savings, overdrafts …) your historical bank is definitely a contact to solicit: it can more quickly issue a proposal since it already has the necessary information.

Can he / should he question other banks?

However, this does not mean that we must be satisfied … It is essential to be able to compare several proposals to be able to have arguments to negotiate. An approach that involves carefully collecting the supporting documents for distribution to the various organizations solicited.

Professional coaching is strongly advised: the know-how of a credit broker can direct you to the banks most likely to respond favorably, and his negotiating skills will make you enjoy the best possible conditions in the current context.

Case 2: The client has a mortgage and wants to change banks

What does the Macron law say?

You have already taken out a home loan, but you are not satisfied with your current bank. So, already, know that it is quite possible to transfer it to another agency , while remaining within the same bank.

Otherwise, be aware that the change of institutions is facilitated by the Macron law and especially by amendment 322 which provides for a “redirection service to the new account of all credit or debit transactions that would occur on the account closed to the new account ” .

How to do with a non-transferable real estate loan?

Concretely, the French Banking Federation, in its guide on mobility, cleared the three possible options for changing banks with a mortgage being: you can keep your loan, pay it in advance, or request a credit redemption another establishment.

In the latter case, do not hesitate to be accompanied by a broker to negotiate for you the best possible conditions.

What are the obstacles to bank mobility?

If the law promotes banking mobility, it can not make real estate loans transferable . In fact, to be able to change banks by having one, another organization must agree to buy it back.

Therefore, like any loan underwriting process, your personal situation is carefully examined to estimate the risks you represent. A history of forbidden banking or insufficient income can then prevent you from changing banks.

Whatever the situation in which you are, the wisest is to seek the advice of a professional and let you guide to the solution best suited to your situation.