Popular wisdom says that applying for a mortgage without a payroll is impossible and even reckless. However, not everyone who earns money has a payroll and, in the end, that is the main requirement for applying for a mortgage: having income. How can you apply for a mortgage without a payroll? We tell you when and how.
Who can apply for a mortgage without a payroll?
Yes, there are certain client profiles that can access a mortgage, even if they do not have a payroll per se.
These are people with recurring income, such as self-employed workers. A self-employed person does not have a payroll as such, but rather income from his or her economic activity.
These earnings may vary each month, but if they are stable and recurring enough, they will serve the same purpose as a salary. In fact, this is what mortgages for self-employed workers are for, which take into account the particularities of this group.
Another profile without a salary, but with income, are pensioners. A pensioner more than covers the section of fixed, recurring and, above all, reliable income. So much so that few sources of income are safer than the public pension.
Your biggest handicap may be your age and the years of repayment. In other words, up to what age you can apply for a mortgage . Most entities do not grant mortgages beyond the age of 70. That is, the duration of the loan will be the number of years from when it is contracted until you turn 70.
The same applies to life insurance for mortgages, which are not compulsory but can be a good protection. In most cases, they do not allow new contracts from that age onwards, or even before.
There is also a profile of people with income from their investments or rents who do not have a salary, but do have assets. For example, a person with several premises for rent or who is dedicated to managing their assets and investing.
Finally, there are people who do have a payroll, but do not want to link it to the bank that grants the mortgage. For them, there are mortgages without ties, starting with those offered by financial institutions that are not traditional banks.
Is it possible for me to be granted a mortgage without a payroll?
The answer is a resounding yes. You can get a mortgage without a payroll as long as you have income, assets that serve as double guarantee for the loan, such as another property you own, or a person who acts as a guarantor.
From there, personal circumstances may dictate the length of the mortgage and the amount to be financed. For example, a 62-year-old pensioner may be able to request a mortgage of between three and seven years' duration, which would normally not be enough to cover a very high percentage of the home.
Meanwhile, a self-employed person or a person who does not want to deposit his salary can obtain a mortgage under similar or even better conditions than those of a salaried employee with his salary and salary.
Requirements for mortgages without payroll
The requirements for mortgages without a payroll do not differ much from the conditions of a normal mortgage.
What the financial institution wants is to know that you will be able to repay the loan. To do this, they will ask you to justify your income with:
- Information about your professional activity if you are self-employed, including your latest VAT returns. If you are a pensioner, you will be asked for your latest pensions.
- Extracts of bank account movements, to review expenses and income.
- Latest income tax return, again, to confirm your income level.
- Working life.
- Deeds of your home, in case you want to use it as a double guarantee
To this you must add the rest of the documentation for the mortgage , such as the details of the property you want to buy, the simple registry note and the appraisal value, when the time comes.
In the end, it is about certifying that you will be able to meet your obligations, whether or not you have a salary.