Of course, it is not always enough alone to convince the banks, which also focus on the ability of the borrower to repay. Still, in practice, the personal contribution can be important to achieve a demand for mortgage and its proposed acquisition.
Real estate purchase: the interest of the personal contribution
In the context of a real estate purchase project, whether investing in a building plot, a house or an apartment, the personal contribution plays a role often decisive for subscribing a mortgage. If this sum of money available, the result of savings, a loan with zero plus or inheritance, for example, remains theoretically optional to obtain a mortgage, it remains, in practice, a real more.
Low mortgage credit rate: an effect on the use of personal contribution?
Mortgage rates are currently at their lowest historical level in France. They average 1.43% nationally according to the Housing Credit Observatory / CSA. A situation which, in principle, is favorable to all investors, whether or not they are in charge of a personal contribution. However, the profiles of borrowers with a strong personal contribution can be in conditions even more comfortable to negotiate with their banker advantageous interests.
What contribution to have in the ideal?
You are carrying a project of acquisition of real estate? Providing a contribution covering the costs of acquisition ( notary fees , guarantee, among others), about 10% of the value of the property is a good basis, but it can of course be higher. In 2017, the average contribution observed in France was around 15 to 20% according to the Credit Longert / CSA Observatory.