17 November 2022
16 min
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Of all personal projects, buying a house is a dream for many workers. However, as we all know, financial stability is a prerequisite for this, which can be a source of concern for many self-employed people who have difficulty proving their stability to the banks. This is wherewage portage comes in. In portage, you are an employee of a portage company, which pays you a monthly salary. You also benefit from the many advantages of being an employee: health insurance, supplementary pension, paid holidays, etc. But is it possible to obtain a loan while working as a freelancer? The answer is yes! Here's how to do it.
As a general rule, the credit organisation first asks the future borrower for a number of elements attesting to his or her ability to repay the loan: pay slips, state of health of the accounts, savings, work contract, financial contribution, etc. However, many self-employed people are afraid of being faced with an obstacle course because of their irregular income and their status, which is often defined as unstable by credit organisations. This is where the wage portage system comes into play, which, through the advantages it offers, can enable self-employed people to access property more easily.
Portage is therefore a strong argument in obtaining a property loan with, among other things, the portage contract and the payslips provided by your portage company. The portage employee is then able to present his pay slips to prove his financial stability, and can also present his portage contract to prove the regularity of his activity. In addition, some freelance administration companies offer their employees the possibility of smoothing their income over the year, which is an additional way of gaining the confidence of credit institutions.
However, it is important to remember that some banks require documents covering several years of activity, so check with the credit organisations to see if these criteria correspond to your situation.
As with any form of employment, the self-employed can choose between two different employment contracts: the fixed-term contract (FTC) and the open-ended contract (OTC). According to the requirements of the banks regarding stability, the permanent contract is therefore to be preferred. Indeed, an open-ended contract is more socially recognised and constitutes an indication of reliability and stability for credit institutions. This type of contract is therefore proof of a fixed, sustainable income and is therefore an asset for any self-employed person wishing to access property. By opting for an open-ended contract and salary smoothing, your situation will be more stable and sustainable.
Depending on their activities, self-employed persons may have to make purchases that can be reimbursed as business expenses. This is a way of optimising your net salary: since business expenses reduce your net salary, reducing them means increasing your income. In addition to optimising your net salary, increasing your net salary also maximises your unemployment contributions and therefore reassures the banks.
Another way of increasing your net salary is to increase your ADR (Average Daily Rate), an opportunity for you to review it upwards, depending on your needs and your profile. You can also ask your freelance administration company for a salary smoothing in order to stabilise your financial situation even more.
Wage portage companies can also provide you with an annual summary of your earnings to prove the financial soundness of your professional activity. As a freelancer, you therefore have all the cards in your hand to build a solid profile.
The submission of the loan request is the key stage of a real property loan. It is at this point that the worker gathers all the documents capable of proving his financial and professional stability. Several documents may therefore be requested by the banks:
Please note that some freelance administration companies can help you apply for a loan, so don't hesitate to ask. Having a financial reserve in your activity account (which is sometimes offered by some portage companies) can also strengthen your case. Indeed, part of this reserve can be used to make up a contribution to your future loan.
Contact several banks : you will have the choice between several options, the embarrassment of choice is good in this case. Indeed, some banks require several years of seniority, while others do not. We also advise you to ask your portage company for information, as some of them are in contact with banks.
Use a real estate broker : as an intermediary between you and the bank, he or she can help you obtain better interest rates and help you put together your file quickly and efficiently while providing you with his or her expertise. In addition, given the particular situation of the self-employed, some banks can be forward-looking; a broker could help you defend your project and advise you in the best way possible according to your particular situation.
Regularise your financial situation : you must ensure that all your loans have been repaid. Your debt ratio must not exceed 33% of your income, as your outstanding loans could well reduce your chances of being able to complete your property purchase in the immediate future, as well as reducing the amount you could borrow. Also, make sure that none of your accounts are in debit, in the eyes of the lending institutions you will present yourself as a model borrower. Finally, make sure that there have been no payment incidents on your accounts and that your current accounts have not been overdrawn in the year before you apply.
Save regularly : you will show credit institutions that you are able to save fixed amounts, and at the same time this will allow you to build up savings that can be used for your down payment. It should be noted that the down payment generally represents about 10% of the amount of the loan.
Want to know more about wage portage with oyesk ?
To go further :
Increase your income as a freelancer with wage portage
Employment, wage portage, freelancing: the complete comparative overview
Why is the wage portage scheme suitable for young graduates ?
What is the difference between wage portage and temping ?
