Personal contribution
The share of the project funded from the borrower's own money, savings, gift, home-savings plan, rather than credit. Banks often expect at least 10% to cover notary and guarantee costs, and a larger contribution improves both rate and acceptance. It signals saving ability and reassures the lender.
Key points
- Primarily covers notary, guarantee and brokerage fees not financed by the loan.
- A contribution of at least 10% is generally expected by lending institutions.
- A higher contribution improves the LTV, which can unlock a better rate.
- Can come from savings, a home-savings plan, a family gift or unlocked profit-sharing.
Frequently asked questions
Can you borrow without any personal contribution?
It is possible but rarer since HCSF norms tightened. Certain profiles, civil servants, first-time buyers with stable income, can secure 110% financing covering fees. The broker then plays a key role in targeting banks that still grant derogations on this criterion.
What is the difference between personal contribution and own funds?
The two terms overlap but banks sometimes distinguish 'liquid' contribution, actually available on drawdown day, from own funds in the accounting sense, which may include illiquid assets. The broker must ensure the declared contribution is genuinely available and traceable to avoid any credit-analyst query.
How should the contribution be presented in a loan file?
Beyond the raw percentage, the broker contextualises the source of funds: savings built up over several years, a gift documented by notarial deed, a matured home-savings plan. This narrative strengthens profile credibility and reassures the credit committee on the client's financial management.
In practice
For a €250,000 purchase of existing property, notary fees approach €18,000 and mortgage guarantee costs around €3,000. A €30,000 contribution (12%) covers these items and lowers the LTV to 88%, placing the file in the most favourable rate bracket at several target banks.
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr