Real estate loan without contribution is financing where the whole price of the property, as well as the ancillary costs related to the operation (agency fees, notary, guarantee, etc.), are borrowed. This type of loan is also called 110% home loan . Banks are sometimes cautious in the face of these loans, so we must put all the chances on his side to make his acquisition.
A mortgage without a contribution is not always easy to obtain
Banks have a habit of requesting a personal contribution to their client, corresponding at least to the amount of ancillary costs. The personal contribution is a guarantee for the bank of the ability of his client to manage his money. It is also a cover in case of dysfunctional repayments of credit because the value of the property is greater than the sums lent.
A 110% home loan requires banks to lend more than the value of the property, so there is a significant risk in case of repayment incidents because part of the loan may remain after the resale.
Who is the mortgage loan for?
To get a 110 per cent home equity loan, you will need to justify this lack of input according to your situation.
For young active people
It is sometimes difficult to save money while studying. Banks are more lenient with young people who have just obtained their permanent contracts and who have not yet had the opportunity to save. They then take into consideration the professional profile and development capabilities of these borrowers who have just entered the labor market.
As part of an investment strategy, it may be worthwhile to use credit since the interest on loans for rentals is deductible from property income.
The accidents of life
Some risks of life, such as divorce or illness can totally liquidate savings. After such events, the bank may grant a loan without contribution subject to financial stability.
Why go through a broker for your home loan at 110%?
To get a home loan without contribution, you will understand, you need a well-crafted file. The help of a broker becomes essential, our specialists accompany you in your loan application to 110% and highlight the strengths of your profile to borrow on the best terms.
Useful information to subscribe a mortgage without contribution
- You must be on a permanent contract or have 3 years of seniority if you are self-employed
- The debt ratio must not exceed 33% of revenues.
- The rest to live must be enough to cover all the living expenses.
- It is important to have healthy accounts.