Do you necessarily need a contribution to buy a property?
The personal contribution to buy a property is a sum that allows you to invest with a bank for a project. The contribution makes it possible to consolidate the borrower profile with the banks but no particular amount is requested.
What is the purpose of the real estate contribution?
The personal contribution in real estate purchase is the sum of the savings invested in the project before contracting a loan. (useful link : What do you need to know before making a mortgage?)
The greater the contribution, the better the conditions obtained by the bank (interest rate, borrowing period, etc.).
The real estate contribution makes it possible to finance all the ancillary costs to the credit, such as notary fees, bank files, guarantees, etc. (useful link : What are the costs associated with the property?) which are not taken into account in the selling price.
Personal input comes from, for example, from:
Banks can consider savings books specific to real estate and certain loans as a contribution: home savings loan (PEL), home savings account (CEL), zero-rate loan (PTZ) for a first-time ascent and housing action loan.
The greater the contribution, the better the conditions obtained by the bank (interest rate, borrowing period, etc.).
The real estate contribution makes it possible to finance all the ancillary costs to the credit, such as notary fees, bank files, guarantees, etc. (useful link : What are the costs associated with the property?) which are not taken into account in the selling price.
Personal input comes from, for example, from:
- Personal savings
- Available financial investments (life insurance, etc.)
- Bank passbooks (Livret A, home savings plan, etc.)
- A legacy
Banks can consider savings books specific to real estate and certain loans as a contribution: home savings loan (PEL), home savings account (CEL), zero-rate loan (PTZ) for a first-time ascent and housing action loan.
What are the advantages of having a real estate contribution?
The higher the personal contribution, the more the borrower's profile is seen as secure and solvent. Banks generally appreciate a contribution of at least 10%.
- It will thus be possible to claim interest rates and application fees at the lowest.
- With a reduced borrowed capital, the maturities and/or the duration of the loan will be reduced.
- The study of the file will be simpler and faster.
- Negotiation leverage (the higher the contribution, the easier it is to negotiate the best credit rates)
Can I buy without real estate contribution?
The personal contribution is in no way mandatory. However, the contribution makes it possible to support a credit file with a bank, which is not to be taken lightly.
Nevertheless, it is quite possible to buy a property without real estate contribution. Some banks agree to finance 100% of the loans and cover the costs of the acquisition: notary fees, agency fees, etc. These loans are generally more expensive, with higher interest rates.
The buyer profile must then have certain characteristics:
Nevertheless, it is quite possible to buy a property without real estate contribution. Some banks agree to finance 100% of the loans and cover the costs of the acquisition: notary fees, agency fees, etc. These loans are generally more expensive, with higher interest rates.
The buyer profile must then have certain characteristics:
- Job security
- Employment prospects
- First-time buyer
- Stable financial situation and adapted lifestyle;
- Savings capacity
How to become a homeowner without real estate contribution?
Without a personal contribution, it is quite possible to invest. To achieve this, it is quite possible to:
Some banks focus on income sustainability, rather than asking for a personal contribution.
- Apply for a zero-interest loan (PTZ). This help is available to you if you are buying for the first time or if you have not been an owner in the previous 2 years. This loan makes it possible to finance up to 40% of the total cost and the interest is borne by the State.
- Apply for an Action Logement loan as an employee in a private, non-agricultural sector company with at least 10 employees. This loan makes it possible to finance up to 30% of the acquisition of a principal residence. However, this loan cannot exceed 20 years and € 25,000.
- Call on aid from local authorities, CAF loans, civil servant loans, etc.
- Unlock your company's profit sharing in advance (only if the company has more than 50 employees, only on request).
Some banks focus on income sustainability, rather than asking for a personal contribution.
Ce qu’il faut retenir :
- The personal contribution to buy a property is a sum that allows you to invest with a bank for a project.
- The contribution makes it possible to consolidate the borrower profile with the banks but no particular amount is requested.
- The greater the contribution, the better the conditions obtained by the bank.
- It makes it possible to finance all the costs ancillary to the credit, such as notary fees, bank files, guarantees, etc.
- Banks generally appreciate a contribution of at least 10%.
- The personal contribution is in no way mandatory.
- Nevertheless, it is quite possible to buy a property without real estate contribution. Some banks agree to finance 100% of the loans and bear the costs of the acquisition.
You want to
to sell in Paris or its surroundings ?
Contactez-nous
Posted on 29/08/2023 by
Andy LECUYER
