Frequently asked questions

Why go through a wealth manager when I already have my banker?

The wealth manager benefits from a set of regulatory approvals allowing him to offer you multiple solutions, adapted to your objectives. Your banker essentially offers you the products internal to its structure.

In short, the wealth management advisor works objectively in an open architecture, which allows you to benefit from the best products on the market.

How much money should I have to make it worth for a wealth manager?

The role of the wealth manager is to support the client at all stages of his life, especially during the creation, development, management and transmission of his assets.

There is no minimum asset to hold to benefit from his advice, because each solution implemented is personalized and adapted to the profile of the customer.

I am in conflict with a wealth manager, what can I do?

Provided that the Wealth Manager is approved and depending on the nature of the dispute, the client will be able to appeal to various mediation agencies:

Unsatisfactory response to a complaint:
Compagnie des CGP-CIF
For the attention of the President for mediation
8, rue Godot de Mauroy - 75009 Paris
contact@lacompagniedescgpi.fr

Litigation related to the CIF Activity:
The Mediator of the AMF (Financial Markets Authority)
17, place de la Bourse _ 75082 Paris Cedex 02
http://www.amf-france.org/Le-mediateur-de-l-AMF/Présentation.html

Litigation related to other activities:
I.E.A.M (Institute of Expertise, Arbitration and Mediation)
31 bis-33, rue Daru - 75008 Paris
Phone: 01 42 27 28 83
ieam-paris@ieam.eu

Litigation related to the validity, interpretation or application of the engagement letter:
The court of competent jurisdiction

What is an entry document?

This document provides a detailed description of all the information relating to the operation and the regulation of your adviser.

You will receive it upon your first meeting with your Wealth A7 advisor.

If you wish to consult it now, just ask for it here!

What is an engagement letter?

The engagement letter clearly defines the work to be done by the advisor, after having precisely determined the client's objectives. This document reflects the commitment of both parties throughout the relationship.

How much can I give to my children while avoiding death duties?

Each parent can donate 100,000 € exempt from inheritance fees, per child, every 15 years.

When passing on my assets, can I advantage one of my children more than the others?

In the context of inheritance, some heirs are called "reservers". These include children (or their representants in case of pre-death) and if no children, the surviving spouse. This means that a part of the patrimony called the "hereditary reserve" is their right and can not be transferred to another person.

In short, each of your children has a hereditary reserve and can not be disinherited.

Except in special cases... contact us for more information.

With the TEPA law, will my PACS partner be exempt from inheritance tax?

Indeed, this law allows for inheritance tax exemption for spouses and partners of PACS.

But be careful, we must not forget that, not having a patrimonial right, the partner of PACS does not inherit by law. Thus, the writing of a will is necessary for him/her to benefit.

Is it worth investing in Pinel?

The Pinel scheme offers many tax benefits.

However, it is important to take all the necessary precautions when investing in real estate by not forgetting to study the economic, demographic, geographic growth of the investment sector and the type of property (surface, price ... ), which will be essential elements for the profitability analysis.

The easiest way to be sure you are not mistaken is to seek the advice of an independent professional before launching any project!

In the current context is it better to invest in real estate or financial markets?

The real estate market continues to grow in the face of falling credit rates. On the other hand, the taxation of financial products is very attractive today.

Anything is possible but what will be the right solution for you?

And then, choose one or the other, is it the right thing to do? Doesn't all good advice also rely on good diversification?

 

Got it?

How the debt ratio is calculated

Debt ratio = amount of credit and fixed charges x 100 / income (net salary + other financial income)
Using a mortgage broker allows for a more accurate calculation.

How is the repayment capacity calculated?

Repayment capacity = Income x 33% - expenses

What is a warranty?


A mortgage guarantee that binds a lender and a borrower is a legal and commercial mechanism that allows the lender to obtain partial or total repayment of the amount borrowed in the event of default by the borrower.

What are the different guarantees available?

The creditor can claim personal or real guarantees from the debtor:

The personal guarantee consists in asking a third party to take over the repayment of the loan in case of default of the debtor. The most common personal guarantee for a loan is the act of guarantee or surety. If the borrower does not pay a monthly installment, the creditor can call upon the guarantor to obtain reimbursement;

The real guarantees relate to goods, tangible or intangible goods 
 

What is the maximum duration for a real estate loan?

The maximum term for a real estate loan is 25 years, excluding deferment

What is the purpose of loan insurance?

The borrower's insurance is an insurance that allows the coverage of all or part of the repayments or the outstanding capital of a credit in case of occurrence of certain events. Everything depends on the degree of the event.
 

Which insurance is mandatory to obtain a mortgage?

Loan insurance is not mandatory. The bank cannot oblige you to do so by law.
In fact, the bank does not leave you the choice because it seeks a means of guarantee in the event of non-repayment of the due dates.

Is it possible to partially pay off a mortgage?


Yes, it is possible to partially reimburse your real estate loan. Nevertheless, the bank will claim early reimbursement indemnities.

They are generally calculated on the original amount of the loan. The IRAs are capped and only the most advantageous formula between :
- Either 3% of the outstanding capital
- Or the equivalent of 6 months of interest excluding insurance

Is it possible to borrow without a down payment?

It is possible to obtain a home loan without a deposit, however it is more difficult to obtain than a loan with a deposit. It is preferable to have a minimum deposit to support your application to the bank.

To increase your chances of obtaining a home loan from a bank, it is recommended to use a home loan broker. The management of bank accounts is very important to support your application.

Can we sell the property before we finish paying back the loan?

Yes, it is possible. The bank cannot oppose the sale of your property with a current loan. However, the operation will be more or less easy depending on the conditions of the signed loan contract. Early repayment indemnities can be requested but also a mortgage release if your property has been registered in the mortgage registers by the notary.

What is a capped rate loan?

It allows to limit the variations of the interest rate to the rise or to the fall.

- Banks have introduced the capped rate to secure monthly payments by limiting interest rate fluctuations.
- The capped rate loan ensures that the borrower is not subject to excessive rate increases.
- There are many advantages, but the capped rate is only interesting when certain market conditions are met.

What is an amortizing loan?

 

The majority of the loans granted by the banks are amortizable.
Contrary to a loan in fine, the repayment of the capital is spread out in time. It is in fact the repayment of the capital and the interests over a given period.

What is a term loan?

The loan in fine is a solution of financing by allowing to :
- Repay the totality of the capital at the end of the loan;
- Repay only the costs of the loan (insurance) during the duration of the loan;
- To deduct the interest paid each month from the taxable income, which reduces the market value of the property and sometimes avoids taxation under the IFI.
- Why choose a bullet loan rather than an amortizing loan ?

They both have their advantages but are not aimed at the same borrower profile.

The bullet loan generally has a higher interest rate than the amortizing loan, and is a solution adapted to real estate investments made by borrowers who already have significant equity. This product is intended for those who wish to defiscalize through rental investment.

In contrast, the amortizable loan is intended for borrowers who wish to purchase their primary residence, with a lower interest rate and the need for a smaller down payment when taking out the loan.

What is a bond?

A guarantor is a guarantee: if you are not able to repay the loan a third party agrees to pay in your place.

The guarantor can be :

- A natural person (parents, friends, etc.)
- A specialized company (credit logement, Camca, etc.)
- A professional (mutualist)

Qu'est-ce qu'une hypothèque ?


The mortgage on a real estate loan is a possible guarantee when taking out a loan for the purchase of a property, in the same way as the guarantee or the privilege of lender of funds (PPD). It allows the bank to seize your property in order to recover the sums due.

Characteristics of a mortgage :

The mortgage must necessarily be the subject of a notarized deed. The notary publishes the mortgage in the land register.
The mortgage runs for the duration of the loan

The personal contribution is a sum of money that a person must have to obtain a loan for the purchase of a property. In general, it is expressed as a percentage of the total amount of the loan. It is mainly used to cover the costs related to the purchase of the property (notary fees, file fees, guarantee fees, deposit, etc.)
In theory, it is not compulsory but all banks require it in order to share the risk and to protect themselves.

What is the 0% loan?

The zero rate loan or PTZ is a loan subsidized by the State, with an interest rate of 0%, allowing first-time buyers to finance part of the purchase of their primary residence without interest or application fees, under geographical conditions, salaries etc...

What is the TEG?

The TEG (Taux Effectif Global) is the rate which gathers all the expenses linked to a real estate loan. It is the interest rate on which the monthly agios of the loan will be calculated.

TEG, TAEG, what is the difference?


The TEG or global effective rate is used to calculate the cost of your mortgage loan. It includes the cost of the guarantee, the file fees and the insurance. It was replaced by the annual percentage rate (APR) in 2016. In short, the TEG and the TAEG are calculated differently. 

How much should I contribute for my loan ?

There is no minimum contribution for a mortgage loan. No law imposes an amount It is the bank that must judge the reliability of the borrower. According to the file the bank will fix an amount minimum contribution validate this one.

Generally the contribution claimed by the banks is 10% of the amount borrowed. These 10% allow to cover the expenses of files, the expenses of notaries and guarantee.

What is the role of a notary?

The notary has different functions. First of all, a function of authentication, that is to say to check the good authenticity of the legal acts such as the contracts according to the legislation. By calling on a notary, you ensure the legal validity of a document.

The notary also plays the role of conservator by archiving the authenticated documents for a long period.

Compromise of sale and promise of sale, what is the difference?

The preliminary sales agreement is a firm and definitive commitment between two parties.
The seller and the buyer agree on the sale of a property and cannot renounce the acquisition of the property. It is however possible to add suspensive conditions in order to renounce the purchase.

By signing a unilateral promise of sale, the seller undertakes to sell his property only to the potential buyer with whom he has concluded the promise.
If the buyer wants to conclude the transaction, the seller is obliged to accept it.
On the other hand, the buyer retains the right not to buy the property. If he renounces the sale, he will have to pay the amount of the immobilization indemnity to the seller when signing the promise to sell.

How will my financing be assessed by the bank?

The bank will try to determine your "risk profile", i.e. it will try to assess your ability to repay the loan and the probability of default.
Of course, the higher your risk profile, the higher the rate offered.

These are some of the criteria that will be used to evaluate your file:

- Your income,
- The capacity to save: having already saved through a CEL or a PEL is an undeniable advantage,
- Professional stability: it will be very difficult to obtain a loan if you are in a trial period or if your job is considered very unstable,
- The amount of the personal contribution,
- The number of dependents,
- Level of indebtedness. The cost of repaying the loan must not cause your repayments to exceed 33% of your income,
- Marital status.

What is a subsidized loan, can I benefit from it?


For both the PEL and the CEL, the holder has the choice to transfer the loan rights to a family member. This transfer does not imply the closing of this support. Indeed, the invested capital is not affected and the holder remains the owner of the sums, which continue to produce interests.


In the case of the plan d'épargne logement, the transfer of the rights of loan is possible after 3 years of detention of the subscriber. If this is the case, the beneficiaries can be:

- The spouse ;
- The children ; 
- The grandchildren of the partner or spouse;
- Parents or grandparents of the respective spouses; Brothers and sisters of the respective spouses.
- Siblings;
- Nieces, nephews or uncles of the respective spouses

Loan offer: what is the deadline?

The law states that the buyer has 10 days from receipt of the loan offer to sign it. This period is mandatory and cannot be exceeded. The buyer must therefore, if he wishes to sign the loan offer, wait 10 days to sign it and think calmly about the loan offer.

What is the cost of notary fees?

Notary fees are not identical depending on the type of property (new or old). On average, they are considered to be equivalent to 7% or 8% of the price of an old property and 2% or 3% of the price of a new property.

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36, rue du Faubourg Saint-Honoré 75008 Paris

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Phone : +(33) 7 49 104 187 - contact@wealth-A7.com