Being able to choose your bank, based on your mortgage offer, is a solution that many French people like when they want to become homeowners. But can the bank refuse to grant the loan, if the bank accounts are in another establishment?
It sometimes happens that you open your bank account in an establishment and that you take out, when the time comes, your mortgage. In this case, the domiciliation of the income is, in fact, effective.
What is domiciliation of income?
On the other hand, as the offers differ from one bank to another, it is common for potential buyers to make a comparison, to find the most attractive bank offer, for their mortgage. Does the fact of not having his income, paid in this establishment, have an impact on the answer that will be given, concerning the loan?
Can a bank require domiciliation of income?
A bank cannot “demand” the domiciliation of income. But it can ask for it, during negotiations, in exchange for a commercial gesture, for example. This means that she can ask that you transfer your bank accounts if you get a lower rate, for your mortgage, for example, or if the handling fees are canceled.
Be careful, however. This domiciliation of income is only effective for a maximum of 10 years. A bank cannot, in effect, request a domiciliation until the end of the loan. If it did, the request could be considered abusive.
At the end of this time, you can decide, even if your mortgage is still being repaid, to change banks, to put your accounts there. Again, the bank cannot decide to forfeit a loan, for the sole reason that you want to change the establishment for your income.
What to do when you have questions relating to a mortgage?
It can be difficult when one wants to obtain a mortgage, to know which bank will present the most attractive offer. Some, in fact, depending on the income or the age of the borrower will have more or less strict selection criteria. The domiciliation of income can, for its part, generate other questions. Is it appropriate to have my bank account transferred to the bank where I am going to take out my loan, and why?
In order to answer all these questions, it can be interesting to turn to a mortgage broker. A recognized intermediary between individuals and banking establishments, he will know how to direct you to the right bank, depending on your situation (family composition, resources, and charges). He can also tell you more about the domiciliation of income.
Finally, if your file seems complicated, in terms of solvency, for example, he can study all of this with you and offer you personalized support. Do not hesitate to contact me. The first contacts and requests are made quickly and simply, by email, in many cases.