What minimum down payment is needed to buy a property?
No law imposes a minimum down payment to buy a property. In practice, banks ask for around 10% of the price, to cover the notary and guarantee fees, which do not constitute resellable value. A purchase with no down payment remains possible but is harder to finance.
No legal minimum, but a banking requirement
Contrary to a widespread idea, no text sets a minimum personal down payment for a property purchase. The down payment is a commercial requirement of the banks, not a legal obligation.
In practice, institutions often expect a down payment of around 10% of the property's price. The reason is simple: this down payment covers the ancillary costs that create no recoverable asset value in the event of resale, namely the notary fees, the arrangement fees and the loan guarantee fees (surety or mortgage).
What this down payment concretely corresponds to
The so-called notary fees (in reality mostly taxes remitted to the State and local authorities) represent an order of magnitude of around 7 to 8% of the price for existing property, and around 2 to 3% for new-build. These percentages are indicative and vary according to local taxation (the transfer duties voted by the departments) and the nature of the property.
On top of this come the loan guarantee fees (surety or mortgage) and any agency fees. A 10% down payment generally aims to absorb this block of costs that banks rarely finance.
- Acquisition costs (transfer duties and notary's fees)
- Loan guarantee fees: bank surety or mortgage
- Arrangement fees of the lending institution
- Any real-estate agency fees
Buying with no down payment or a reduced one
A 110% financing (price + costs) remains possible, in particular for young working people or first-time buyers with a solid profile, but the bank will be more demanding on income, professional stability and disposable income.
Several levers strengthen your application or supplement the down payment: the zero-rate loan (PTZ) for eligible first-time buyers, the Action Logement loan for employees of contributing companies, or a home-savings loan (PEL/CEL). Furthermore, the recommendations of the High Council for Financial Stability (HCSF) regulate the granting of credit: the debt ratio is in principle limited to 35% of income (insurance included) and the credit duration to 25 years, with a regulated margin for exceptions. These rules may change: check them at the time of your project.
Frequently asked questions
Can you borrow the notary fees?
It is possible in a so-called 110% financing, but banks are reluctant because these fees do not constitute resellable value. Such a structure requires a particularly solid borrower profile. Most banks prefer the down payment to cover these fees.
What down payment for a buy-to-let investment?
There is no legal minimum here either. Some investors, on the contrary, seek maximum financing to benefit from the leverage effect of credit and the deductibility of interest. The bank will assess the project's profitability and your overall repayment capacity.
Does the PTZ count as a down payment?
The zero-rate loan is a loan, not a down payment strictly speaking, but banks often treat it as a quasi-down payment in the financing plan, as it improves the structure of the application. It does not necessarily exempt you from any personal down payment.
Does a larger down payment lower the rate?
Often, yes. A down payment above 10% reduces the risk for the bank and can allow you to negotiate a better rate or better terms. Since credit rates change constantly, compare several offers at the time of your project.
Read next
- ANIL - Financer son achat et l'apport personnel
- Service-Public.fr - Prêt immobilier et conditions d'octroi
- HCSF - Recommandations sur les conditions d'octroi de crédit immobilier
- economie.gouv.fr - Le crédit immobilier
A question about your plans?
Realistic price, order of the steps, agency fees on a sale. Book a video call with a BRIVEO adviser, free and with no commitment.
Talk to a property adviser