Mortgage Without Down Payment: Is It Possible?

Buying a property without a down payment can be a challenge for many. Additional costs such as notary fees and the required down payment can pose significant barriers. Fortunately, there are several ways to secure a mortgage without having to provide a personal contribution. In this article, we explain how you can obtain a mortgage without a down payment and explore the options available.

Mortgages for First-Time Buyers

For young buyers under 30, obtaining a mortgage can be more difficult, especially if they don't have a down payment. However, Belgian law allows banks to relax conditions for first-time buyers and offer more favorable loan terms. As a result, 35% of first-time homebuyers can borrow more than 90% of the property's price, and 5% can even borrow up to 100% of the value without a down payment.

If you're a first-time buyer, it’s definitely possible to negotiate a mortgage without providing any upfront payment. This presents a great opportunity for those who want to purchase their first home, even without having saved a large sum of money.

The Family Loan: A Solution for the Down Payment

Another increasingly popular option is the family loan. Since September 2020, parents can lend between €3,000 and €50,000 to their children to help finance their first property purchase. This loan can specifically cover the down payment and notary fees, meaning you don't need to save for these additional costs.

The family loan works like a personal loan with a reduced interest rate. It offers a valuable solution for people who don't have a down payment but can rely on financial support from their family.

Mortgage with Two Mortgages

In some cases, it is possible to take out a mortgage using a second property as collateral. This means that close family members or friends can offer their property as security for the loan. By doing so, you can borrow up to 90% of the combined value of both properties.

This allows you to finance the purchase without needing a down payment. It's an attractive option for people who don't have savings but can count on additional real estate assets within their family or circle of friends.

Social Mortgage Without Down Payment

Finally, there is also the option of a social mortgage without requiring a down payment. This option is available to individuals who meet certain criteria, such as specific income levels or other social conditions. With a social mortgage, you can borrow 100% of the property's purchase price and even up to 125% to cover additional costs, such as notary fees.

If you are eligible for a social mortgage, it’s recommended to contact your social housing provider for more information on the eligibility criteria and the application process.

Conclusion

While most traditional mortgages require a down payment, there are several ways to purchase a property without a personal contribution. Whether you are a first-time buyer, can rely on family support, or qualify for a social mortgage, there are various options to help you buy a home without a down payment. Make sure to explore all your options and consult a financial advisor to choose the solution that best suits your situation.