If banks have drastically reduced loans without contributions, certain property loan applicants, particularly the youngest, can still benefit from this type of 110% loan.
Last June, the Century 21 network explained in a study that the personal contribution reached 89,000 euros for a property worth 257,490 euros, or almost 35% of the purchase price! However, some brokers believed that this was not a condition set by the banks (which most of the time require 10% to 20% personal contribution) to obtain the credit, but rather a desire of buyers to increase their envelope to be able to afford the property they desire.
First-time buyers favored for the loan without down payment
Nevertheless, difficult for many borrowers, particularly for first-time buyers (those who buy for the first time, NLDR), to put such a sum on the table. In recent years, many banks have therefore offered loans without contribution, also called 110% loan.
Which means that the bank grants a loan not only to finance the purchase of the property, but also to cover all its ancillary costs such as notary or agency fees. In recent months, ECB rate increases, which impact the cost of resources for banks, have drastically reduced this practice.
ECB rate increase: what has changed for your property loan
Is it then still possible to borrow without down payment? Yes, answer the brokers questioned, but certain conditions. 110% today is really more for young people. For this category of borrowers, loans are statistically lower, therefore the risk is less important for the bankexplains Mal Bernier, communications director at Meilleurtaux.
La Banque Postale targets under 36s
La Banque Postale thus announced that it agreed to finance the files of first-time buyers without any contribution if they are under the age of 36.
Some banks will make 110% chosen, notes Ccile Roquelaure, spokesperson for the broker Empruntis. For example, wealthy customers with a very good profile, who have savings with the bank but who do not want to or cannot unlock them can apply for this type of loan.
According to her, it is difficult, however, to make generalizations about a typical profile of borrower who would certainly obtain a loan without down payment. In certain sectors, there will be 110% on average profiles who do not have a lot of savings or on first-time buyers, when in the same region certain banks have not offered them for two years.
To hope to obtain a loan without down payment, it is therefore better, in addition to presenting a solid file, to approach several banks or call on a broker to put all the chances on your side.