Written by Yanis KharchafiFinancing your mortgage thanks to your pillar 3A
“Okay, but Noé, for my mortgage loan, is it best for me to make my pillar three at a bank or at an insurance?”
Well, as it is often the case, it depends! In both cases, they will prove to be of major help to secure a mortgage loan.
The line-up:
Mortgage and pillar 3A at an insurance
A pillar 3A at the insurance offers a whole range of protections, namely in case of death or invalidity. It is wiser not to withdraw the available amount but to pledge it, which means to transform it into a guarantee.
This pledging will not help you to collect the individual funds required by the institution which will finance you but it will allow you to reassure them and, most importantly, to amortise parts of the 2nd rank, which will decrease your monthly cost. Reassured means better rates! The lower the risks for the loaner, the less margin it will need to take to cover itself. The mortgage rates charged by recognised institutions can as much as double depending on how strong your file and guarantees are!
In case of unexpected events, your bank can count on your pillar 3A at an insurance. That is very reassuring!
Mortgage and pillar 3A at a bank
A 3A account at a bank, put simply, is savings account allowing for tax advantages but no protection in case of unforeseen events. Its sole goal is to allow you to save money for one of the five cases provided for by the law one of which being ascent to ownership.
It therefore represents an ideal leverage to finance the purchasing of your housing.
Obtaining the individual funds necessary is a first step, but a second one is missing in order to have the green light for a mortgage loan: the calculation of your solvency.