The Advantages of Credit Redemption for Civil Servant Property Owners

As part of the personal finance management, many are the agents of the public function who are looking for solutions to optimize their budget and improve their financial situation. THE credit redemption promises to be an effective option, especially for property owners. In this article, we will review the particularities of this solution adapted to civil servants and its main advantages for owners.

Simulate a request

Reminder on the repurchase of credits and its interests

The credit redemption, or consolidation of loans, consists of bringing together several current loans (real estate, consumption, revolving, etc.) into a single loan. This operation simplifies the management of monthly repayments and reduces the amount of installments, because the duration of the new loan is generally extended. Borrowers can thus better manage their budget and reduce their debt ratio in order to avoid the risk of over-indebtedness.

Simulate a request

Civil servants: a privileged category for the repurchase of credits

THE civil servants, whether they are holders or contractual, have a major advantage when it comes to repurchasing loans: their professional status. There job stability and continuity of income are two factors appreciated by banking establishments, which facilitates access to this financial operation for civil servants.

This favorable situation is reflected in particular by:

• More flexible access conditions,
• Generally lower interest rates,
• Longer repayment periods,
• Better consideration of variable income (bonuses, overtime, etc.),
• The possibility of benefiting from specific guarantees (public service mutual guarantee, etc.).

Thus, for the same amount borrowed and the same repayment period, the cost of repurchasing loans may be lower for a civil servant than for an employee in the private sector.

Simulate a request

Owners: additional advantages in the context of a loan repurchase

In addition to their professional status, civil servants also benefit from specific advantages when they request a loan repurchase. The fact of owning real estate constitutes an additional guarantee of security for banks, which will be valued in different ways:

• Even easier access to the loan repurchase operation, thanks to the provision of additional guarantees (mortgage, deposit, etc.),
• More advantageous interest ratesin particular when the repurchase includes a real estate loan and the share of the latter exceeds 60% of the total combined amount,
• The possibility of generating additional cash flowfor example to finance work on the property held.

Why are owners favored?

Banks and credit repurchase organizations consider that an owner borrower generally has a less risky profile than a tenant. Indeed, owning real estate demonstrates a certain savings capacity, as well as previous good financial management. Furthermore, in the event of default by the borrower, the bank can recover its debt through the seizure and sale of the property.

Simulate a request

Repurchase of credits for tenant civil servants: particularities to take into account

If the civil servant owners have certain advantages in terms of repurchase of credits, the public service agents tenants are not however excluded from this financial solution. However, they will have to deal with specificities linked to their situation:

• Stricter access conditions, due to the absence of a real estate guarantee,
• Less competitive interest rates, given the higher risk for lending institutions,
• A generally shorter repayment period, linked to the type of credits grouped (notably consumer credits),
• The importance of having a solid and well-prepared file to maximize the chances of obtaining credit redemption.

It is therefore essential for tenant civil servants wishing to optimize their loan redemption to carefully analyze their financial situation and find out about the solutions adapted to their profile.

Simulate a request

Carry out a suitable credit redemption: contact an advisor specializing in the public sector

To benefit from a optimized credit redemption corresponding to their personal situation, whether they are owners or tenants, public sector agents have every interest in turning to an advisor specializing in financial solutions dedicated to public sector employees. Thanks to in-depth knowledge of the specificities of the statuses and constraints of civil servants, this professional will be able to propose an offer adapted to the expectations and needs of his client.