What does it mean to get a 100% mortgage?
A 100% mortgage, as the name suggests, covers the entire cost of the home and eliminates the need for initial capital. It’s an attractive option for those looking to purchase a home but don’t have enough savings for the down payment required by traditional mortgages. If you’re considering this option, requesting a 100% mortgage quote will help you better understand the specific conditions for your situation.
Who can access a mortgage without a down payment?
Access to the 100% mortgage is reserved for certain categories of applicants, particularly those under 36, who can benefit from the First Home Guarantee Fund managed by CONSAP. This fund offers a government guarantee for loans up to 100%, provided the applicant:
- be under 36 years of age;
- have an ISEE no higher than €40,000;
- is buying a non-luxury first home.
This opportunity represents concrete help for the new generations, as it reduces the initial economic barriers to accessing ownership.
Costs and conditions
100% mortgages generally have higher interest rates than standard mortgages, with a difference between 0.3% and 1%. For young people under 36 who access the Guarantee Fund, rates may be more advantageous thanks to the government guarantee.
Ideal situations for a 100% mortgage
A 100% mortgage is suitable for those who have enough cash to cover incidental expenses, such as notary fees and taxes, but not the down payment. It also represents an opportunity for those seeking advantageous real estate deals they don’t want to miss.
It’s also ideal for young professionals with a stable income but who haven’t yet accumulated significant savings, or in areas where rent costs are so high that a mortgage payment is more affordable than a monthly rent.
Benefits and risks to consider
Choosing a 100% mortgage offers the immediate advantage of owning a property without having to wait years to accumulate the necessary down payment: this way, you can preserve any savings for other needs or unexpected events.
On the other hand, it’s important to consider that higher interest rates result in a higher overall outlay over the term of the mortgage. Furthermore, the total loan amount will always be higher than the value of the property, since it also includes accrued interest.
