25 Oct

Real estate loan for civil servants: what specificities?

Are you an official and want to buy a place? Whatever your project, your status allows you to benefit from advantageous financing conditions.

Public service employees enjoy several benefits when they take out a mortgage. Indeed, they have a privileged profile by the banks thanks to their professional and financial stability. What are the specificities of real estate loans for civil servants? All the explanations.

A more attractive interest rate

A more attractive interest rate

The real estate rate is often the first criterion observed by borrowers looking for financing. This rate reflects the risk taken by the bank that agrees to lend you the funds. Part of this risk is assessed on the basis of the applicant’s employment status (salary amount, job stability). On this point, the officials correspond to the ideal borrower profile.

It is obvious that having a stable job does not guarantee a good rate. Indeed, before making an offer, the lender looks at other criteria such as the state of your finances, your savings capacity or other loans in repayment. Thus, while in most cases civil servants can benefit from an attractive rate, this is not systematic.

Advantageous guarantees

Advantageous guarantees

The guarantee allows the bank to be protected in case of default and to recover the outstanding capital. Personal guarantees subscribed through a surety company are distinguished from real guarantees such as a mortgage on the property. It is up to the bank to choose the guarantee to put in place according to your profile and your project. This guarantee has a cost not to be neglected. It takes between 1% and 1.5% of the credit for the deposit, between 0.8% and 1.5% of the amount borrowed for a real guarantee.

There are bonding companies dedicated to civil servants such as those set up by cashmat or the BFM. The cost of the bond is then between 0.4% and 0.5% of the amount borrowed, which represents a considerable saving.

Personalized mortgage loan insurance

Personalized mortgage loan insurance

At the time of the subscription, like the other borrowers, the public servants are offered group insurance of the bank. This is a standard contract based on risk pooling and single pricing. In accordance with the 2010 Lagarde Law, civil servants can opt for cheaper individual loan insurance and wider guarantees. Some insurers and in particular the MGEN, Interiale, ADREA or AGPM are specialized for the civil service. To find the best public loan insurance, it is advisable to play the competition. The comparison of offers is even more useful if you practice a risky job (police, military …) to avoid a tariff increase and / or exclusions of guarantees.

Thus, civil servants can benefit from preferential conditions for their mortgage. Some banks do not hesitate to offer them additional benefits to attract these profiles.

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