Employment status, an impermeable condition
Whether buying a house or an apartment, banks generally require a minimum of 10% personal contribution in order to obtain a mortgage. The banks authorizing a mortgage only under certain conditions, it is always the employment status of the applicant which remains the “sine qua non” requirement of lenders. The CDI (open-ended contract) remains the most favored contract by banks. With 9 out of 10 contracts created on fixed-term contracts (fixed-term contracts) in 2018 according to Ceceile Roquelaure, the banks want to ensure – before any file is created – the applicant’s income history. The personal contribution is then no longer an “obligation” if the financial situation of the applicant is stable, and in positive evolution, for at least 3 years .
Banks expand award criteria
Cecile Roquelaure reassures: the mortgage requires less and less personal contribution compared to the past years. The attribution criteria are reduced in order to allow access to mortgage loans to a larger number of individuals . However, certain “rules” must be observed. If the applicant does not have a personal contribution, the latter will have to prove to the bank that the management of its finances is due to “legitimate” events. Divorce, new vehicle, education costs for children, return to work: all these reasons serve to justify that the future borrower is not ineligible.
Borrowing without personal contribution becomes possible
In 2018, Empruntis financed 15% of first-time buyers files without personal contribution (a person or a couple who has not bought a main residence in the previous two years), compared to 7% in 2014. Nicolas, specialist in mortgage loans , confirms the words of Cecile Roquelaure. With declining support from the public authorities (APL upon accession removed and refocusing of the PTZ), it is now easier to apply for a mortgage without personal contribution . Mr. Tan explains that it is even possible to obtain a loan for the financing of works and that a loan without contribution is today possible in rental investment.