Personal contribution

The personal contribution is the part of availability that the borrower has and that he will use for his real estate project.

Definition

It consists of the following elements:

• booklets
• Savings earned on all banking contracts ( ELP , life insurance …)
• Business Savings Plan (which the borrower can benefit on a net basis due to the reason for the withdrawal )
• Family gifts
• Family loans (with or without interest …)
• added value on the resale of a previous home
• Money available on a current account.

Remarks

• A personal contribution is prepared by constituting very early.
• Banks lend more willingly to risk management when there is a good personal contribution since the loan effort is reduced and therefore there is a shared risk on the investment. Banks will then benefit from a rate lower than the customer with contribution.
• It is considered that, on average, a minimum contribution of 30% considerably reduces the borrowing rate.