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IT'S TRUE THAT SELF-EMPLOYMENT CAN BE SEEN BY BANKS AS AN ADDITIONAL RISK FACTOR Reader Question: I have heard it is difficult for self-employed people to obtain a mortgage. Is that
true? Banks essentially want to feel confident that a would-be borrower is going to be able to consistently pay back their loan and it is true that self-employment may be seen as an
additional risk factor compared to someone who has a full-time salaried job on a CDI (indefinite contract). This is because their income may be more irregular or vulnerable to life changes.
Read more: Tips for Americans considering a French mortgage That does not, however, mean it is impossible. One common requirement is that you should be able to show you have been carrying
out your work for at least three years and that you are making a profit and the business is steady or growing. You should be able to support this with accounting paperwork. Being able to
offer a substantial deposit (at least 10% of the amount you wish to borrow) will also help. Banks will also want to see copies of recent bank statements to get an impression of whether you
manage your money responsibly (no bounced cheques, large overdrafts etc). Having some savings or investments will also help. Your work sector will also be a consideration, with more weight
given to sectors seen as likely to be in demand, eg. high-tech sectors such as web developers or traditional trades such as plumbers and electricians. Read more: Is it right time to
renegotiate mortgage on French home? As a minimum, banks will also require some form of guarantee against your defaulting on the loan, usually in the form of a caution bancaire, where a
third-party organisation guarantees the loan. However, offering a stronger form of guarantee can help, including agreeing to an hypothèque. This is a legal right against the property itself.