A bank will give you a loan more easily if you have a personal contribution. But it is possible to borrow without having or little!Do you have a purchase project to become an owner? You will then have to define the amount of your personal contribution, the one that will be completed by a loan. Being able to invest is a benefit to getting a loan.
Multiple ways to increase your investment capacity
Your personal contribution corresponds to the funds you ement pay for the financing of the acquisition of a property. Its amount varies according to your possibilities: depending on the profiles, it can represent 50% of the amount lent or even more, but may also not exist.
Your personal contribution can weigh in the negotiation.
Overall, this is an important criterion for financing your purchase project. If only because it allows to benefit from a good rate of borrowing.
When your investment makes up more than 20% of the amount of the loan, the bank’s agreement is more likely. All or part of your contribution is generally used to cover the costs of notary, real estate agency, warranty and file.
Obtaining a loan is possible even if your contribution is between 10% and 15% of the amount borrowed. At this level, you are already showing your bank that you are able to save and you are doing it!
Moreover, your debt ratio will tend to play less on the decision of your bank if you have a contribution. Finally, agreeing a loan is more likely for leasing than for a purchase if you do not have investment capacity.
However, it is quite possible that you can not make a personal contribution. In this case, be aware that some banks agree to finance the loan in its entirety.
The absence or the weakness of your contribution is not prohibitive
The younger you are, the less problematic your personal contribution is: most banks understand that savings may be lower for younger borrowers.
Above all, be sure not to neglect the impact of the amount of the contribution on your budget. It must be defined carefully and according to your possibilities: not to invest is sometimes a necessity.
In all cases, using the services of a broker is advisable in order to obtain the most suitable offer for your household.
A loan broker:
- Will not consider the absence of your personal contribution as a blocking element
- Find the bank offering the highest loan amount for your contribution
- You will save time by comparing competing offers for you