What financial contribution for the purchase of a prestigious property ?

While the average down payment in 2021 is 30,000 euros, up 13% from 2020, the amount required for luxury real estate buyers is generally much higher.

10% and more depending on the type of real estate purchase

Indeed, the minimum deposit is generally 10%, so to finance the purchase of a high-end apartment of 700,000 euros for example, the minimum deposit will be 70,000 euros. Moreover, it is not uncommon for banks to require a down payment of 20% of the cost of the transaction, in this example 140,000 euros, or even more if it is a second home or a non-resident buyer. This amount can then reach 40% of the cost of the property depending on the banks.


Finally, financing without a down payment, especially for very high amounts, is becoming increasingly rare. In addition, with real estate prices having risen significantly in some cities over the past two years, buyers have had to bring in more money to compensate for this increase and borrow over longer periods. However, buyers who do not have enough cash to buy can negotiate bank terms with counterparties, especially if they already have assets or very high incomes.

The value of the minimum deposit depends on the cost of the transaction, the type of purchase (primary residence, secondary residence, rental investment), the type of borrower (resident, non-resident, professional, company director, executive, etc.) and his or her means. And if it is higher than the norm, the personal contribution can allow to obtain an exceptional rate. On average, credit rates have stabilized at 1.13% in October 2021 according to the Banque de France data, which is close to their lowest point. The best profiles can be financed at levels lower than 1% over 20 years, in particular thanks to their contribution.

New rules for real estate credit in 2022

Even if the rule of 10% minimum of real estate contribution is not written in black and white in the recommendations of the High Council of Financial Stability, it is already widely applied by the banks. Its recommendations on the rate of indebtedness (35% maximum), the duration (up to 27 years in the new) and a quarterly percentage of their production of 20% which can exceed these thresholds, become moreover binding for the banks from January 1, 2022. Lending institutions that deviate from these rules may be sanctioned. It is therefore more necessary than ever to prepare one's financing with care, so as not to be limited in one's choice of banking establishment.