The personal contribution for a home loan is the amount of money available that the borrower will invest in his non-credit real estate project. This corresponds to the savings that the borrower has for the purchase of his property.
How much does it take for a personal loan for a mortgage?
There is no legal minimum for the share of personal contribution in a mortgage. However, lenders usually set a minimum amount of personal contribution. This minimum amount is generally set at 10% of the total amount of the transaction, thus covering notary fees and ancillary costs (guarantee and file fees). A personal contribution of between 20 and 30% of the total amount allows access to more advantageous borrowing conditions.
The mortgage loan without the contribution
The personal contribution demonstrates the ability of the borrower to save money and thus the good management of his budget. Lending institutions take a risk in lending money, so they pay close attention to the profile of the borrower. There are, however, some situations where unassigned credit can be granted. For example, an acceding household that wants to keep its contribution to the completion of work, a household leaving school, a household in the process of separation can make a mortgage without contribution.
How to build one’s personal contribution when one subscribes a mortgage?
Personal input can come from different sources. The first is the effort made each month to set aside a small portion of his salary to build his savings. This can be on life insurance, a booklet A or a housing savings plan. Other sources can be various: inheritance received, donations, resale of a property, a family loan, employee savings …
Complementary loans can also help the borrower make a contribution. These are zero-interest loans, various loans or equity housing loans.
To know: each situation is different and all the files are studied case by case by our advisers the Central of Financing, do not hesitate to deposit your request.