Real estate credit: borrowing without contribution is still possible ...

If the recommendations of the High Council for Financial Stability have led banks to request more personal contribution and to make 10 % of contribution the standard, some people still borrow without personal contribution or with little savings injected into the project.The point with youfinance.

In the past 24 months, in particular under the effect of the HCSF recommendations and the health crisis, personal contribution has become sesame in most banks to obtain a credit.

Yes, most banks require 10 % contribution ...

"Even if the HCSF does not indicate black on white in its recommendation that it takes 10 % of personal contribution, being able to inject savings into the project makes it possible to borrow less and therefore to reduce the debt and the durationcredit ... In addition, most banks no longer want to finance more than 100 % of the value of the property, therefore the additional costs, in order to reduce the risk of non -reimbursement of credit in the event of rushed resale or drop in valuegood.This is why most banks ask that the borrower finances at least the costs with personal savings (notary fees, warranty costs, file fees and/or brokerage) or approximately 10 % of contribution.However, some banks still grant funding at 110 % under conditions, "explains Julie Bachet, Director General of Vousfinancer, who notes an increase in average personal contribution amounts, from € 29,100 in 2020 to 35,955 € in 2021.

If having a personal contribution therefore indirectly makes it possible to meet the criteria of the HCSF and therefore to increase your chances of obtaining a credit, it is also a lever to have a more attractive rate.YouFinancer finds that on average, the rate differences between a file with 10 % contribution and a file without contribution are 0.10 points.In addition, having 20 % of contribution (10 % for costs + 10 % of the amount of the property) instead of 10 % often allows you to have an additional rate reduction from 0.10 to 0.15 point.

We also note at yourfinance among the files with personal contribution, an increase on the part of it in the project.If in 2020, 28 % of the files had more than 10 % contribution, this share went in 2021 to 36 % of the files.This means all the same that 64 % of funded files do not have the 10 % of supposedly essential contribution, but often less, 5 % of contribution only for example ...

But it is still possible to borrow with little savings

Even if the standard, especially in general banks, is to request 10 % of contribution, in certain banks, or certain regions, for certain profiles, it is still possible to borrow without contribution, at 110 % or 105 %.The contribution then serves to finance warranty costs and case costs (about 2 to 3 % of the amount of the property), notary fees that can sometimes be more easily included in financing.

My sweet'immo services

At youfinancer, even if the share of files without contribution has dropped, it is still significant: 23 % of loans have been granted without personal contribution at all in 2021 or more than 1 file out of 5 (against 34 % in 2020) butIt depends a lot on regions or borrowing profiles.

"It is still possible to borrow without contribution in certain banks, in particular for borrowers under the age of 31 whose income will be evolving or for the highest income sections which have savings but do not necessarily want to inject itin the project.Overall banks have a higher tolerance on personal contribution for young people who start in working life: if at 30 years old, it is understandable not to have been able to put aside € 15,000 in savings, at 40 or50 years it is more problematic not to be able to demonstrate an ability to put money aside.Beyond the contribution, the banks study the borrower's financial behavior, the amount of the rest-to-wine, but especially the charging jump which is the difference between the current rent and the future monthly payment which will allowAnticipate the ability to cope or not for reimbursements… ”, analyzes Sandrine Allonier, director of studies to.

Note: the 10 % contribution rule is not immutable for surety companies either.They agree to endorse purchases at 110 % provided that the file is of good quality.

If the banks do not necessarily require 10 % of contribution, they can still require precautionary savings after project, a few thousand euros - 3 or 4,000 € - guarantee of safety in the event of an unexpected.This sum can be used in the event of unforeseen work on arrival in the accommodation, unscheduled purchases as a 2nd car, sometimes necessary if the accommodation is too far from public transport, or in the event of a blow (divorce, unemployment) and will thus avoid the subscription of a new consumer credit and therefore the risk of over -indebtedness.

Example of recently financed files without contribution

The zero rate loan never considered as a contribution but other boost for borrowers without contribution

For several years, the zero -rate loan has no longer been considered by banks as personal contribution, because it is a loan that they consent (although it is a settled loan), which must be reimbursed and which is taken into account in the debt of the borrower.On the other hand, there are other "boost", in addition to whether donations or family aid, which can take into account as personal contribution by certain banking establishments.

"Borrowers sometimes ignore that beyond the PTZ, there are other bonus loans, aid from cities or housing action grants which allow young couples to modest income to have a real boost onthe quality of their file, even if they are often reserved for purchase in the new.It is our role as a broker to tell them about these aids that can make the difference on their file ... and their budget!"Concludes Julie Bachet.

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