Increasing your personal contribution is often presented as one of the best ways to obtain a mortgage loan on better terms. The idea is simple: the more the borrower finances a significant part of the project himself, the less risk the bank takes. In practice, this argument really weighs in the negotiation of the rate, especially when establishments remain selective on the profiles they finance.
However, we must qualify. A higher contribution does not automatically guarantee a sharp drop in rates, nor the acceptance of a fragile file. Its effect depends on the rest of the profile: level and stability of income, bookkeeping, debt or still life. In other words, the contribution is a powerful asset, but it does not replace the overall quality of the file.
A higher intake often improves the rate
A significant personal contribution reassures the bank, because it reduces the part of the project that it must finance. “Yes, increasing your personal contribution generally allows you to obtain a better credit rateconfirms Sandrine Allonier, spokesperson for Vousfinancer. By bringing 20 to 30% of the price of the property rather than the 10% usually requested, the borrower mechanically reduces the risk for the bank. This effort is often rewarded with rate cut of around 0.10 pointsor even more for the strongest files. »
Up to 0.30 point less in the best cases
The contribution is also a signal of good financial management. The higher it is, the more it shows that the borrower has been able to save and secure his project, which can push the bank to make a commercial effort. “Personal contribution remains one of the most effective levers for negotiating your real estate loan. The larger it is, the less the bank finances a high proportion of the project. The less risky it is for her, the more she is willing to make a commercial gesture on the rate.”
In addition, a high contribution sends a clear message to the bank: “the borrower has savings and knows how to manage his finances. This is why it can make it possible to obtain up to 0.30 point rate reduction when other criteria are also green »underlines Sandrine Allonier.
The contribution does not save a bad case
Be careful, however, not to overestimate its role. A large contribution does not compensate for unstable income, repeated overdrafts or poor bank management. “The contribution must be seen as an accelerator of negotiation, not as a free passspecifies Sandrine Allonier. It cannot compensate for everything: a substantial inheritance will not be enough to hide irregular income, poor account management or repeated overdrafts. It’s the overall quality of the file that counts! »
So, yes, the contribution can lower the rate, but only if it is part of an already solid file.
