With mortgage rates currently set around 4%, many borrowers believe that they cannot become owners today. However, in certain cities, it is possible to carry out your project with modest income.
Realize your real estate project is not only reserved for the richest borrowers. Despite rates around 4% in February 2024, a study by broker Pretto shows that in certain cities, it is possible to obtain a real estate loan and carry out your project, even while receiving the minimum wage.
With 1,398.69 euros net per month (the level of the minimum wage since January 1, 2024, Editor’s note)the broker Pretto thus calculated that a single borrower could, at a rate of 4.22% and over 25 years, borrow 90,730 euros, thanks to a monthly payment of 489.54 euros per month.
Home loan: how much can you borrow with your salary?
For a couple, with two people on minimum wage, the possible monthly payment increases to 979 euros (35% of the couple’s income, according to the standard set by the HCSF). A monthly payment that allows to borrow 181,275 euros over 25 years, still with the same rate of 4.22%.
Up to 58m2 in Saint-Étienne
With this loan, a single borrower will be able to buy 68m2 in St-Étienne, 55m2 in Limoges or even 54m2 in Angoulême. Obviously, in large cities, where real estate prices are often more expensive, the room for maneuver is much lower. The borrower could not acquire only 9m2 in Paris, 18m2 in Nice or even 19m2 in Lyon and 20m2 in Bordeaux.
You will have understood, even with a minimum wage, a bank can agree to finance your file if it judges that your project is viable. However, certain points can put all the chances on your side. “No matter the amount you plan to borrow or the duration of your loan, banks generally require an initial deposit of 10% of the value of the property you wish to acquire,” explains broker Pretto, for example. An amount that should allow you to cover warranty costs and notary fees.
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