When mortgage rates are at their lowest, many French people are embarking on the purchase of a house or an apartment. But one statistic draws attention: only 1 borrower in 10 does not have a permanent contract, a very small proportion which demonstrates the reluctance of banks to the idea of lending to people with only a precarious contract.
The share of borrowers on fixed-term contracts does not change
Having a permanent contract is an almost essential asset when you want to borrow, even if some banks still grant loans to people on fixed-term contracts, after a case-by-case study. In general, wanting to take out a mortgage with only a fixed-term contract is a way of the cross. In France, a total of 12% of employees are on fixed-term contracts, while the share of borrowers on fixed-term contracts is only 1.7%. This proportion is even much lower than the 6% of borrowers considered as non-salaried workers (TNS) or the 2% of retired borrowers.
This difficulty in accessing credit is explained by the need for banks to have a long-term vision, a mortgage being on average contracted over 20 years. A person with a permanent contract only presents a 2% risk of losing their job the year after taking out the loan. For people on fixed-term contracts, the probability of job loss reaches 13% (and 22% for temporary workers). Difficult for banks to plan for the long term and minimize the risk of default if certain guarantees are not provided, in particular those relating to the sustainability of employment.
Borrowing with a CDD, a difficulty not always insurmountable
Two people on fixed-term contracts who wish to borrow jointly will find it even more difficult to obtain credit. Only 0.6% of the credits granted report to this type of borrower. On the other hand, a CDD person borrowing with a CDI person will have an easier time accessing a banking offer. They are 5% in this situation.
Fortunately, careful file analysis allows some banks to make loans under certain conditions. Workers on fixed-term contracts in the catering or tourism sector, where this type of contract is most frequent, as well as public officials with short contracts will more easily be able to take out a loan if they can demonstrate regular income and stable.
It is therefore easier for a CDD worker to borrow if he does it with a person on CDI or if he is employed in certain sectors of activity where CDD is more or less the norm in terms of employment contract.