The trend is reversed for the personal contribution required. After reaching peaks in recent months due to difficulties in accessing real estate credit, banks today prefer that borrowers keep savings.
Good news for borrowers: While the average personal contribution reached 64,942 euros in 2023, the latter fell to 54,798 euros in February 2024, according to figures released by the broker Finance Conseil. That is almost 10,000 euros that borrowers will no longer have to find to realize their real estate project.
In certain regions, the observed drop in personal contribution is even more pronounced: In the south of Nouvelle-Aquitaine, a sector which notably includes Bordeaux, Nouvelle Aquitaine, the average contribution fell from 73,927 euros to 40,587 euros, a drop of 45% in the space of just two months. The Île-de-France region alone explodes the average: the average contribution recorded by Finance Conseil was 230,325 euros in December 2023, and “only” 150,778 euros in February 2024.
Savings, more valued than a substantial contribution?
How to explain this decline? According to France Conseil, credit institutions have resumed their march forward and are now seeking to attract new customers, effectively relaxing the granting conditions. In addition, banks today would prefer that their clients have residual savings after the project rather than a very large contribution.
A desire that is not new: already in February 2023, certain banks had made post-project savings a condition for granting credit. “In a context of increases in daily and energy expenses, some banks are asking for up to one year of monthly loan payments in precautionary savings in addition to the requested contribution,” explained Laura Martino, director of banking partnerships at the broker. Cafpi.
As you will have understood, there is no longer any need to mobilize tens of thousands of euros in your real estate project. The fact remains that if the figures around personal contribution have exploded in recent months, this is indeed the average contribution. According to figures from broker Meilleurtaux, the median contribution in 2023 was 27,500 euros, for 19,975 euros in 2022.
Proof that the substantial increase in personal contributions in recent months was more a choice of borrowers rather than a real request from banks. In January, some brokers already pointed out that this was not a condition set by banking establishments (which most of the time require 10% to 20% of personal contribution, Editor’s note) to obtain the credit, but rather from a desire of buyers to increase their envelope to be able to afford the desired property.