Real estate loan without contribution: Our guide

Real estate loan without contribution: Our guide

Making investments today is very profitable given the drop in loan rates. However, many investors are very reluctant about this type of investment. This is justified by the cruel lack of personal input observed today. In this sense, the mortgage without contribution is a key to build its heritage.

The majority of banks or financial structures generally refuse to fully sponsor all types of mortgage loans.

Indeed, these structures require investors to present a personal contribution worth at least 10% of their project. However, despite the delicacy of the situation, there is a way to get a home loan without any personal contribution. This implies compliance with certain terms and conditions which will be explained through this guide.

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Personal contribution: conceptual clarification
To have their own property, investors grant a certain amount. This sum therefore represents their personal contribution and can be withdrawn from a sale of property, income or even an economy.

Thus, the personal contribution is intended to manage the additional costs of your mortgage application file. These costs take into account the file, the allowances of the structure and the notary.

In other words, the personal contribution is a guarantee that banking structures require in order to ensure the reliability of their client in terms of savings. Personal contribution therefore determines the ability of an investor to manage his money.

The bank will only grant him the loan if it is certain that he will be able to pay his monthly payments properly.
In fact, during the financial crisis 10 years ago, getting a mortgage without down payment was almost impossible. To date, banks are much more favorable to granting this type of loan. They do, however, take the time to diligently review the candidate's loan file as well as their financial situation. Don't miss our report on how to unlock your life insurance to pay for your retirement home.

Thus, very specific conditions allow an investor to obtain his mortgage without contribution.

Of course, it is important to have a reliable and realistic plan for the price of an apartment or a house. This in line with your salary so that the monthly repayment installments are duly respected.

A quick comparison between the rent and the monthly payment of your mortgage will make you make the right decision. Having real estate debt is positive because you create your wealth through a clear investment in a house, apartment or residence.

Financing your project is the key, even without a contribution. As a borrower, you need to find real estate related to your salary in order to repay the loan when you buy real estate.

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The conditions for obtaining a mortgage without contribution
First of all, note that obtaining a mortgage loan without contribution relies heavily on your application. This is therefore to be suitable.

Better, it must have several strengths so that the banks are less careful about granting you the loan without contribution. In other words, the investor must demonstrate his credibility to enjoy such a loan. To this end, the latter must:

Have a permanent source of income (work)
The job represents a guarantee of security for all banks. They will therefore be more willing to grant loans without contributions to clients on CDI who have regular pay. Their stability must be proven within their working environment in order to reassure the banks as to the regularity of their repayment.

Have little or no outstanding receivables
Banks will be very cautious about offering a non-capital loan to an individual who is already drowning in debt. So, if you have a lot of credit, getting a mortgage loan without down payment will be a complex process, if not impossible.

Real estate loan without contribution

Have savings in good standing
Before getting a non-capital mortgage, banks make sure their customers' bank accounts have never been overdrafted.

In addition, it should be remembered that the sum paid for the last rent must be of the same kind as the next monthly loan payment.
This modality is called load jump and concerns first-time buyers of mortgage without contribution. Also, to have a mortgage without contribution, it is better to turn to the internal help offered by your bank.