The lack of personal contribution no longer constitutes an obstacle to real estate borrowing. To apply for loan, the borrower must submit a solid file and convincing arguments.
To access the property, applicants must build a loan file. In this file, they will have to mention the presence or not of a personal contribution. The higher this contribution, the more the bank will be reassured at the idea of granting a loan. However, by subscribing an optimal borrower insurance and by justifying a stable financial situation, it is quite possible to subscribe a loan without contribution. Explanations.
What is a personal contribution?
The law does not require a minimum contribution to subscribe a mortgage. Banks set their own conditions in this area. Some require a minimum rate of 10% contribution in order to accept the granting of loan. This contribution can correspond to a savings, an annuity or a donation. The personal contribution is intended to reduce the allowances if the holder wishes to take out a mortgage from a bank. It is then dedicated to the payment of ancillary costs: administrative fees, notary fees, fees of the agency.
In many cases, borrowers do not have a personal contribution. In this case, the banks make the decision to grant financing to 110%. In other words, the lender gives the applicant a home loan corresponding to 100% of the value of the property and an additional 10% for the settlement of the aforementioned ancillary costs.
Real estate loan without contribution: who are the beneficiaries?
The real estate loan without contribution concerns several categories of people. First of all, young people who have just entered the labor market . Most did not have time to build up savings to face such a situation. Then there are individuals who have solid savings but do not want to mobilize them to finance their acquisition. Finally, investors are also concerned because real estate loan without contribution can allow them to optimize their taxation.
Our advice to get a home loan without contribution
To qualify for a loan up to 100% of the amount sought, the borrower must indicate the reasons for which he can not provide a personal contribution.
The first thing to do is to provide a complete file to the bank containing all the supporting documents requested including the latest pay slips, statements of account and tax notice. It is also important to show that your project is viable by bringing in the documents provided by the developer or the seller.
Before launching, it is essential to compare the offers of mortgage . To find the most attractive offer, the best solution is to use an online comparator. For ease, you can also go through a broker who will be responsible for selecting offers at the best rate.
If your file is too risky, it is possible to offer a third party to stand surety . The bond can reassure the lender and encourage the granting of financing.
The lending bank will ask you to take out loan insurance to avoid any risk of non-repayment. Be aware that since the Lagarde Act came into force, you can purchase loan insurance that is different from the one offered by the bank, provided it has equivalent or better guarantees. Getting the best insurance borrower can help you get a home loan without contribution.
Finally, in case you choose to opt for group insurance offered by the bank, keep in mind that you can change insurance on each anniversary date if you find a more interesting offer.