Do you need a personal contribution to invest in property?

When looking to invest, several factors must be taken into account. One of these is your budget and, more specifically, the amount available to you. However, you may wonder whether a personal contribution is compulsory. 

First of all, what is a personal contribution? It consists of the financial resources available to you that you put towards your purchase project before applying for a loan.

A personal contribution is not compulsory. However, it remains strongly recommended. Furthermore, if you manage to obtain a loan without contributing a single cent, you must be able to cover the notary fees and any potential estate agency fees.

Moreover, if you apply for a loan without making a personal contribution, you must submit a well-prepared application demonstrating that you will be able to repay the loan in full.

Bear in mind that a substantial personal contribution can be the key to securing a loan on favourable terms. If the bank sees that you are capable of saving, this will reassure it and make it more inclined to grant you the loan.

However, you should be aware that if you obtain a loan without making any contribution, the interest rate you will have to pay will be higher than usual. This effectively acts as a form of insurance for the bank.

In conclusion, you are not required to make a personal contribution when purchasing a property. However, it is certainly advisable.