The contribution is not a mandatory condition to have access to funding. It is possible to borrow money without necessarily having a personal contribution. In the context of a mortgage or consumer loan, it is the debt ratio that will define the maximum amount that it is possible to obtain.
Loan without contribution: how much can I have?
The borrower cannot exceed 33% of his monthly income in loan repayment. So let’s take an example if the borrower has an income of $ 1,500 and he has no outstanding credit. He can reimburse up to $ 495 monthly for a loan.
The loan without contribution is not conditioned or limited, it is only the capacities of the borrower who will fix the maximum amount that can be borrowed.
In addition, we find it under the name of the 110% real estate loan, that is to say, that the sum which is used as usual contribution to finance the various expenses (file, guarantee, notary, real estate agency …) is added to the amount of the price of the property, we, therefore, speak of 110% for 100% of the price of the property and 10% of costs, all in a single monthly payment for the borrower.
How do I calculate how much I can borrow?
At first glance, it is not easy to know exactly how much one can borrow within the framework of a mortgage, because obviously many data enter into account but it is possible to calculate, with his means and in a way basic the amount of the loan that can be taken out.
To know how much I can borrow, I must first know the amount of my income. Second, I need to know my debt ratio if I have outstanding loans, this allows me to know the amount that can be granted to a monthly payment. Finally, I need to have the credit amount and possibly the desired repayment tenure.
Calculation of the debt ratio: CHARGES / INCOME X 100. It is good to know that all these elements are automatically calculated during a loan simulation online or through the financial advisor who is responsible for the financing study.
Monthly payment calculation
Interest rate :
Repayment period (year):
Borrow without personal contribution: the rate
The rate is very important in the context of financing without prior savings because it will also determine the amount that can be borrowed. The lower the rate, as at present, the more the borrower will be able to borrow and therefore enlarge his initial envelope. For a home loan, a difference of a few tenths in the rate can increase the maximum amount that can be granted by a few thousand.
In addition to this, if the borrower can avail of the zero-rate loan, the maximum amount borrowed is even greater. To know precisely the total amount you can get, you just have to make a loan simulation without contribution to the project concerned: real estate, consumption, auto.
It’s free and without obligation. Important to know: the absence of contribution does not mean that we can not compare and negotiate the offers of housing finance, so we take the opportunity to put them in competition and negotiate the best conditions.