Legally, providing a personal contribution when taking out a mortgage is not mandatory. However, banks do not see the same thing and tend to require a financial contribution from the borrower before granting credit. However, how do you borrow when you have just started working life and do not yet have any savings? Answers.
Ten years ago, it was impossible to envisage access to a mortgage without personal contribution. It is an insurance for the banks of the savings capacity of the borrower who is therefore able to manage his finances independently and autonomously. But recently, the situation has changed. Financial institutions are more lenient and agree to finance up to 100% of the mortgage. Please note that this prerogative is only reserved for certain profiles, including young people who have recently entered working life. These first-time buyers have not yet been able to build up savings. And banks understand this, hence this flexibility. Investors are also part of the profiles eligible for a loan without contribution. The rents received every month make it possible to repay the monthly payments through a loan in fine, for example. The same goes for savers. They have no cash, but have passbook accounts or life insurance which are capital proving their ability to save.
Even if borrowing without contribution is possible when you are a young worker, this does not imply automatic access to credit. The rules are more complex. A sine qua non condition to enjoy the precious sesame is to present a quality profile. What does that mean ? Concretely, you must demonstrate to the bank your involvement, your seriousness and your desire to make the project a reality. It starts with justifying a healthy financial situation. Exit banking incidents, overdrafts and the accumulation of consumer loans which are very badly seen by banks. In any case, you won't be able to hide anything, because your bank statements will be scrutinized. On the same line of thought, be sure to present a sufficient remainder to live. A debt ratio exceeding 33% is not in your favor. Beyond that, be aware that banks are more flexible towards profiles with stable employment on permanent contracts. Again, this is a condition that reassures them of your ability to repay your credit.
Applying for subsidized loans is the solution for real estate credit without contribution. Among the most recommended is the essential PTZ. Otherwise, it is also possible to claim a PEL, a CEL, a “Housing Action” loan, a Social Accession Loan or even personalized housing aid which plays in lowering the amount of monthly payments. Some loans or grants can be combined. When preparing your loan file, you should check whether or not you are eligible for these state boosts.
