5 Common mortgage myths you should stop believing

Taking out a mortgage is one of the most significant financial decisions of your life. However, the subject is so complex that many myths and misconceptions have grown around it, often paralyzing potential borrowers.

As an experienced financial office, we address these same concerns daily. That is why we believe it’s time to clear the air! Here are the 5 biggest mortgage myths we need to debunk once and for all.

 A perfect credit score is a must

MYTH:

There is a widespread belief that anyone who has ever been late with a phone bill, a loan installment, or a bank account debit is automatically disqualified. Consequently, many clients are afraid to even apply, assuming their BIK (Credit Information Bureau) report isn’t “perfect.”

FACT:

In reality, banks focus primarily on your current financial stability. Single, long-resolved delays—especially for small amounts—usually aren’t deal-breakers. What truly matters is having no active arrears (unpaid debts) and a solid repayment history on your current obligations.

Expert Tip: If you’re worried about your credit history, contact us. We’ll help you interpret your report and, more importantly, identify lenders with more flexible criteria.

Read more: Mortgage refinancing – what is it and what is it for?

Mortgage experts are expensive and unnecessary

MYTH:

Many people assume that hiring an independent expert is an added cost that can be saved by going “straight to the bank.” Furthermore, they believe a bank employee will always offer them the best possible deal.

FACT:

Contrary to popular belief, Financial Experts do not charge clients directly for mortgage services. Their commission is paid by the bank that grants your loan. Most importantly, using an expert never increases the cost or worsens the terms of your mortgage.

An expert provides a comprehensive analysis of the entire market. A bank employee, however, will only offer their own products—which may not be the best fit for you. A good expert negotiates margins, finds the cheapest insurance, and handles the bureaucracy, saving you money and months of stress.

The 20% down payment is mandatory

MYTH:

The 20% rule is often seen as an unbreakable law that blocks anyone with smaller savings from getting a loan.

FACT:

Although a 20% down payment (recommended by the KNF) offers the best terms, 10% is enough to start the process at most banks. Admittedly, this lower amount simply requires additional security for the remaining 10%.

This is typically handled through a temporary rate increase. While a 10% down payment makes the loan slightly more expensive overall, it allows you to buy your property much sooner. Also, keep an eye on government programs (like the “Family Housing Loan”) that can waive the down payment requirement entirely for eligible buyers!

A standard employment contract is the only way

MYTH:

People on civil law contracts or the self-employed often believe their income is too “unstable” for a bank to approve.

FACT:

Banks accept various income sources. The key is stability and continuity.

For civil law contracts: Most banks look for 12 months (sometimes 6) of steady income.

For self-employment (B2B): Generally, 12 to 24 months of business activity is required, with creditworthiness based on your net income or revenue.

Read more: Divorce and mortgage – what do you need to know?

If one bank said no, they all will

MYTH:

A rejection from one bank is a final verdict and the end of your home-buying dreams.

FACT:

Every bank has its own lending policy and risk appetite. One bank might be strict about your specific industry, while another might be more flexible regarding your down payment or income source.

 This is exactly why a financial expert is invaluable. We analyze exactly why a bank refused and find an alternative lender whose policy is a better match for your unique situation.

Believing in outdated myths can cost you time, money, and your dream home. Every situation is different and deserves an individual look.

Contact our experts today. We will analyze your creditworthiness for free, check your BIK, and finally debunk the myths standing between you and your new home.