Getting a Mortgage Loan as a Self-Employed Worker: Factors and Considerations

The fact of being a self-employed worker does not put banks off, the method of calculation will differ from that applied to employees.

Of course, getting a mortgage loan while exercising a liberal profession is possible, even if the subscriber is not on a permanent contract.

But some are considered more or less at risk, and everything may well depend on the stability and amount of professional income.

Additional guarantees?

As the income is not stable, a more solid file may be requested, accompanied by certain guarantees such as having its activity in a buoyant economic sector, or even a greater personal contribution compared to what could be requested from an employee. .

But these aspects can also make the bank feel reassured:

• a co-borrower on a permanent contract: a loan for two with a salaried spouse on a permanent contract will lead a credit institution to more easily grant its trust (regular income, lower risk);
• the mortgage of real estate: if a mortgaged property constitutes a solid guarantee for a bank, it is however necessary to carefully consider the risk taken, in other words the risk of seizure in the event of default in payment of a due date .
• a pledge or pledge of non-real estate such as an old vehicle, jewelry, etc.

The role of seniority

It is considered that before three years of seniority, a credit institution does not have sufficient hindsight to gauge the activity.

After this threshold, a better vision of the professional’s income, clientele and financial management can thus be assessed, and therefore the loan more easily granted.

The financial statement

Again, time is the borrower’s friend. A positive balance sheet is certainly crucial, but income must, beyond being regular and stable, grow.

It is estimated that the balance must be positive for at least two years.