Real estate loan with or without personal contribution: advice

A buyer is more likely to obtain a loan if he has a strong personal contribution, which also influences the interest rate.

 Our mortgage loan

If this is not your case, our Mortgage Loan can be a solution.

Hardening of access conditions

The big banks are intensifying the conditions of access to mortgage loan. In this way, they protect themselves by ensuring that the borrower has sufficient guarantees to pay the monthly repayments.

Therefore, if you want to subscribe to a home loan as an individual, it will usually be easier to negotiate your loan if you already have a financial contribution . These sources of financing can be of various kinds. It can be savings, money from an inheritance, a donation from a loved one or the possession of a property.

An influence on the interest rate

The term ” lump sum” is used in the context of mortgage loan to define the amount borrowed in relation to the total purchase price. For example, for a property of 200 000 €, if the sum borrowed is 150 000 €, the quota will be 75%. This concept has an influence on the setting of the interest rate . In general, the lower the share, the lower the rate of interest offered by the lender.

A detailed analysis of the file

In the middle of an economic crisis, it is sometimes difficult to build up a reserve of money to invest in a house. This is why the lender does not simply check the buyer’s contribution, which is not a guarantee that the buyer will fulfill its commitments. It is rather the general situation that is appreciated .

In this context, we advise you to be transparent and to bring as much information as possible about your situation when you negotiate your loan. For example, if you do not have any personal contribution, but you have a stable and well-paid position, this will generally have a more favorable impact than if you have a financial contribution but your situation is uncertain.

Our mortgage loan

Anyway, the lack of personal contribution is far from inevitable and must not slow down future buyers in their efforts. At loan Tip, we offer a special formula that allows you to realize your real estate projects even without own funds .

The mortgage loan formula allows you to borrow for a portion of up to 105% and can be combined with a loan for notary fees that do not require a real estate guarantee.

Leon Kaplan Author