Are you going to take out a mortgage with Banca Fortuneo? Finding the necessary budget is the first thing to do when planning to carry out a real estate project. Applying for a loan isn’t always easy, but keep in mind that online banks grant loans just like physical banking institutions and various credit organizations. That said, this offer, with a 100% digital bank, is accessible under certain conditions. We tell you everything!
About this online bank : Fortuneo, the online bank of Credit Mutuel ArkeaIt also makes attractive financing offers available to customers wishing to undertake real estate investments. Known as one of the cheapest online banks, it offers an attractive interest rate. Here is everything you need to know about the Fortuneo mortgage.
Obviously, the Fortuneo mortgage is an offer intended to finance a real estate purchase. This is a conventional, amortizable loan at a fixed rate. You will therefore not be able to use it for any other project (you will then have to go to a car loan to finance the purchase of a vehicle; or to a consumer loan to finance another project).
NB : A loan is a contract that must be honored. Any credit withdrawn must be repaid according to the terms established by your contract.
1. Beneficiaries of the loan
Who can benefit from the Fortuneo loan? It is destined to individuals employees or self-employed, domiciled in France for tax purposes. In other words, professionals and businesses cannot avail this loan. The loan only finances property acquisitions.
2. The funded project
As mentioned above, this is a loan used to finance real estate acquisitions. As for the type of property to be purchased, it can be a new building (excluding construction) or an old property that needs work. In any case it must have a private use. In other words, it can be a house or an apartment and must serve as a primary, secondary or rental residence.
The Fortuneo mortgage cannot therefore finance the purchase of land, the construction of a house or the purchase of premises for professional or mixed use. It is also impossible to use it when buying SCPI shares, a car park or a property located outside the French territory.
3. The repayment term, the loan amount and the rate
As for the loan amount, it is generally between € 80,000 and € 2,000,000. The duration of the credit varies according to the type of property purchased. For borrowers who purchase a primary or secondary residence, repayment can be made from 7 to 25 years. In the case of a rental investment project, however, the duration of the loan varies between 7 and 20 years. This type of option is negotiated directly with your broker, banker or lender.
Various parameters are taken into account when calculating the repayment term. In addition to the mortgage rate applied, there is also the amount of the credit and the amount of the monthly installments. We remind you that the Fortuneo mortgage is offered at a fixed rate. The APR or Annual Effective Annual Rate in effect is 1.19%.
NB : A rate between 1.10% and 1.19% is now a very good rate. Rare are the banks that offer less (there are of course some, but the practices are more complicated to pass and are often the subject of lengthy negotiations – to see if you want to spend time there or not).
For example, on a loan worth 800,000 euros at the 1.15% rate against a fierce negotiation on which you could negotiate a 1% rate, you would save between 25,000 and 30,000 euros. It is a sum if you keep the credit for 20-25 years (but very often the credit is repaid before financing another real estate project and you will not see the 30,000 euros pass). This is a topic to think about.
4. Expenses relating to the Fortuneo loan
When you take out the Fortuneo loan, no registration fee it is not taxed. It is also possible to change the date of the monthly withdrawal of the installments without any penalty. In case of early redemption, the bank may impose early redemption fees or Indemnity. Their amount is limited to 3% of the residual principal amount due. This element is obviously negotiable. It is up to you to compete and / or enter into reasoned negotiations with your banking advisor.
To obtain a mortgage on Fortuneo you must first be a natural person, fiscally resident in France. The borrower must also be between the ages of 18 and 73.
In addition, he must have a personal contribution, the amount of which is equal to 10% of the purchase price of the property (today, and to facilitate the negotiation of the loan, it is often preferable to disburse between 15% and 20% of the purchase price of your real estate project – This is not mandatory but adds marbles to your portfolio).
Note that to qualify for this loan, you must have an account bank at Fortuneo – The account is super cool and free. You can take advantage of a bank card that does not charge you any commission on payments and withdrawals in the euro zone or abroad! Who says best?
How to take out a mortgage with Fortuneo? Online banking home loans are offered under various conditions. And of course there are steps to take.
1. The operations to be carried out
First of all, the Fortuneo loan request can be made entirely online. You need to start by filling out a form available on the brand’s website. Online banking asks you to provide various information such as your monthly income, credits already in progress and desired monthly installments. The next step is to send the required supporting documents to Fortuneo.
2. Receipt of the credit agreement
Once the complete file has been submitted, the online bank will take the time to study your request. It will take into consideration various details such as the borrower’s debt ratio. This must not exceed 33% (otherwise it will be very difficult to take out a loan – You will have to prove that you are an excellent investor or a very good negotiator; but it is almost impossible). Fortuneo’s goal is to verify the customer’s ability to repay. If the debt ratio is too high, the latter will have difficulty paying the monthly installment in the event of the unexpected and the online bank would find itself in a complex financial situation.
The online bank then designs a mortgage offer adapted to its customer profile. It indicates the monthly payments to be paid, the APR, the interest rate applied, the loan amount as well as the deadlines. This business proposal will be sent to the borrower within 15 days and is valid for 30 days. The latter can study the offer before signing it and returning it.
Note that Fortuneo reserves the right to refuse a mortgage application. Furthermore, like any banking institution, it does not grant real estate credit to interested parties.
3. Insurance subscription of the borrower
To benefit from the Fortuneo loan, it is necessary to take out loan insurance. It is possible to opt for the contract offered by the Fortuneo online bank or to contact another insurer. That said, the guarantees provided by the two contracts must be the same. It should be noted that the customer has the privilege of following the evolution of his credit application practice.
NB : You can take out “X” borrower insurance with the bank and change it once your file has been validated and payments have begun. The change can be made at any time during the first year and with a new insurer of your choice. After the one-year period, the change can only be made on the anniversary date of the contract.
The Fortuneo mortgage comes as a high-yield credit offer. Furthermore, the loan amount can reach up to 2,000,000 euros and the online bank is committed to very attractive real estate rates. In addition, customers applying for a home loan from Fortuneo are entitled to a financing simulation tool. It allows them to assess their borrowing capacity and to determine the monthly payment in advance.
The home loan simulation is customizable. As a result, borrowers can reduce monthly installments to optimize purchasing power or even shorten the repayment period in order to reduce the total cost of credit. In other words, they are able to establish the loan application based on their financial situation. During the process, the online banking team is ready to provide them with professional assistance.
Ready to get started? Do you want to know more about Fortuneo and its ultra advantageous bank account before signing up?