On a rental investment, the question of the contribution divides investors. On the one hand, there are those who defend minimal, or even zero, contribution for maximize theleverage credit and multiply their assets with the bank’s money. On the other hand, those who prefer a more comfortable contribution, to reduce their monthly payments and secure their cash flow. In reality, there is not one side more right than the other: both logics are valid, and above all depend on your priorities.
But with the current context, is it still possible to borrow without down payment? The 110% loan, which finances at both the property and the related costs without any personal contribution, remains accessible to certain profiles and to certain banks in 2026, provided you present a solid application, confirms Pierre Chapon, co-founder of the online broker Pretto. But the expert also points out the limits of an investment strategy without security savings…
The big contribution, security that costs
Putting a high down payment on a purchase mechanically reduces the amount borrowed, therefore the monthly payment to be repaid each month. On a project whose rental profitability is just sufficient to cover the credit, or even slightly lower, putting in more money makes it possible to limit the monthly financial effort to be taken out of your pocket, and therefore to secure the operation over the long term. It is also a way to access credit when our file is not ideal for the banks.
But this choice has an opportunity cost: the money tied up in the contribution can no longer be placed elsewhere nor reinvested in another rental project. The right dosage therefore depends above all on the intrinsic profitability of the property. And this is also why many investors aim for 110% credit.
Little input for more leverage
Conversely, investing with little or no contribution allows you to multiply the profitability of your own funds, since it is the bank’s money which finances most of the operation. On a profitable property, that is to say whose rents largely cover the monthly loan paymenteach euro of unmobilized contribution can be reinvested (whether in a second project to accelerate the creation of assets intended to supplement a retirement, or in other financial products).
This logic works particularly well when the credit rate remains lower to the gross rental yield of the propertywhich creates a positive gap between the cost of borrowing and the income generated. “It’s always possible to have a 110% loan”confirms Pierre Chapon. But this type of financing remains conditional on the analysis of the real risk that the investor represents for the bank. “What the bank will look at is the real risk”he specifies. Because this leverage effect also works in the other direction: if the property turns out to be less profitable than expected, or if an unforeseen event occursthe investor finds himself with a large monthly payment to cover out of his own pocket, with no room for maneuver.
No contribution… but savings
This is why the key point, according to our expert, is not the contribution itself, but the savings available to the borrower. “If we prefer not to mobilize savings for this project, it is possible by highlighting the fact that we have residual savings »explains Pierre Chapon. This savings acts as a shock absorber in the face of unforeseen events: “This means that if the boiler in the apartment being rented breaks down, we will be able to quickly repair it and continue to rent”he illustrates.
The risk therefore does not come from the absence of contribution as such, but from the total absence of financial reserve: “If we have nothing saved and we want to invest without any contribution, telling ourselves that everything will go well and that the rent will pay off the credit, the problem arises if an imponderable arises – and there always will be some. The bank then said to itself that with the slightest grain of sand, the property could no longer be rented for a few months, and it doesn’t happen »he explains. This is why it is always better to have reserves: “In general, it is not a good thing to make a rental investment without contribution or savings »affirms Pierre Chapon.
