Not having a CDI, the French permanent employment contract, does not stop a 50-to-64-year-old from borrowing. The bank simply swaps the security of the contract for the track record of your income. Three steady years of fixed-term contracts (CDD), assignments or self-employed accounts usually allow the lender to work from an average, as long as the file is backed by a deposit, some form of security or a co-borrower.
Careers without a CDI become more common after 50: executives turned consultants after a negotiated departure, tradespeople who set up on their own, umbrella-company workers, contract teachers, health professionals working sessions. Each status has its own way of proving income. Knowing which one applies to you avoids handing in an incomplete file that is bound to fail. English-speaking freelancers often arrive with a UK limited company or US self-employment history; a French lender will want French tax returns, so the clock on your French track record usually starts when you began declaring in France.
Which status needs which proof
For a fixed-term employee, the bank looks at the length of the current contract, the continuity between contracts and the tax assessments. For the self-employed, it asks for accounts or turnover declarations, normally over three financial years, and calculates an average. Portage salarial, the French umbrella employment model, sits in between: the payslip is genuine, but it depends on the assignments you win.
| Status | Track record usually expected | Key documents | Income retained |
|---|---|---|---|
| Successive fixed-term contracts | About 3 years of contracts with no long break | Contracts, tax assessments, statements | Annual average |
| Micro-entrepreneur | 2 to 3 years of activity | Turnover declarations, tax assessments | Average taxable income |
| Company director or liberal profession | 3 sets of accounts, sometimes 2 depending on sector | Tax filings, articles, interim figures | Pay and sometimes dividends |
| Umbrella worker (portage) | History of assignments | Payslips, umbrella contract, client contracts | Average of salaries paid |
Self-employed after 50
Banks like turnover that is stable or rising over the latest years. A drop in the final year, even an explained one, pulls the average down sharply. A forecast prepared with a chartered accountant (expert-comptable) helps, especially when the business is young. Seasonal or highly competitive sectors are judged more harshly than regulated or sought-after professions.
Portage deserves special mention because it attracts many senior executives. The umbrella company pays a real salary, contributes to unemployment insurance and issues ordinary payslips. Banks accept it more readily when the worker can show twelve to twenty-four months of continuous assignments and repeat clients. An open-ended portage contract is not enough on its own, but it clearly strengthens the file.
A consultant's figures
Pascal, 57, a former sales director now consulting as a micro-entrepreneur, declared taxable income of €31,000, €36,000 and then €38,000. The average is €35,000 a year, about €2,915 a month. At 35 %, his maximum repayment is €1,020. He borrows €130,000 over 15 years at 3.5 %, roughly €930 a month before insurance, below the 4.68 % usury ceiling.
The retirement question
When the loan ends, Pascal will be 72 and living on pensions. Micro-enterprise years earn pension rights on a low income base and reduce his entitlement compared with his salaried career. His bank will ask for an individual pension statement (relevé de situation individuelle) and check the repayment remains bearable. On a projected pension of €2,300, the instalment would be 40 %; a €20,000 deposit would bring it below 35 %.
Making up for the missing CDI
The more unusual the profile, the stronger the security has to be. A 10 % deposit covers the fees; aiming for 20 to 30 % on a fixed-term contract or a recent business often changes the answer. A co-borrower on a permanent contract or with civil servant status steadies the file. A pledge over a life insurance policy (nantissement) can replace a standard guarantee, and a property that will be easy to resell reassures the lender about its security.
Choosing when to apply
On a fixed-term contract, apply while several months remain or as soon as you receive a written renewal. If self-employed, wait for a good year's accounts to close rather than presenting weak interim figures. An umbrella worker benefits from showing a client contract signed for the year ahead. Timing can weigh as much as the level of income.
Why files without a CDI fail
Refusal mostly follows too short a history in the current status: a consultant set up for eighteen months has only one set of accounts. Then come falling income, unexplained gaps, business and personal finances mixed in one account, and a term running past 75. Repeated overdrafts at the end of the month, common among the self-employed, are also heavily penalised.
Fix it before you apply
Keep business and personal accounts strictly separate for at least a year before applying. Pay yourself a fixed monthly transfer that looks like a salary. Have your accounts certified and attach a note explaining any one-off dip. On a fixed-term contract, ask your employer for a letter about the prospects of renewal.
Recommended steps
- Gather three years of evidence suited to your status: contracts, accounts or declarations.
- Calculate your average income and the maximum repayment that fits within 35 %.
- Request a pension estimate if the loan runs beyond your retirement age.
- Identify the security you can offer: deposit, co-borrower, pledged savings, an easily resold property.
- Use a broker who knows the banks open to careers outside standard employment.
Alternatives to a standard home loan
For €5,000 to €20,000, a personal loan requires a shorter track record than a mortgage, especially over 36 to 60 months. Microcredit, whether business or personal, can fund the equipment or vehicle your work depends on. Finally, a homeowner can rely on a mortgage-backed loan, where the value of the property counts for more than the type of employment contract.
Revolving credit: handle with care
It is easy to obtain and seems made for irregular income. Its cost, up to this quarter's 15.76 % usury ceiling for amounts between €3,000 and €6,000, makes it expensive if it becomes permanent working capital. A fixed-term instalment loan plus an emergency fund worth three months of outgoings is the better combination.
Borrower insurance for the self-employed
Self-employed borrowers should check how the policy defines incapacity to work: some pay nothing if you resume part-time. For a home loan under €200,000 insured and repaid before 60, the loi Lemoine removes the health questionnaire, which benefits workers aged 50 to 55.
Frequently asked questions
Does a negotiated departure followed by starting a business close the door to credit? For a while. Two or three years of accounts are usually needed before a mortgage, unless you have a large deposit.
Is portage treated like a permanent contract? Not automatically. The bank reviews your assignment history even when the umbrella contract is open-ended.
Does unemployment benefit between fixed-term contracts count? Rarely, since it is not guaranteed. Only earned income forms the basis.
Is a contract civil servant treated like a fixed-term employee? In principle yes, but a long contract or a promise of tenure clearly improves the file.
Do I need a deposit without a CDI? It is not compulsory, but 20 to 30 % of the price makes approval much easier.
Organisations and offers to contact
- Meilleurtaux, mortgages for micro-entrepreneurs : Broker detailing the two to three years of activity, accounts and forecasts required from micro-entrepreneurs, with an example of borrowing capacity.
- Pretto, loans for business owners : Online broker financing company directors and the self-employed, using three-year income averages and sometimes accepting two sets of accounts depending on sector.