First-time buyers
Down payment for a mortgage: how much is actually required, and how to prove it
No minimum down payment threshold is imposed: what the down payment actually covers, what counts as a down payment, and how to prove its origin to the bank.
No legislation mandates a minimum down payment percentage for a mortgage: the threshold often cited is market practice, arising from the weight of acquisition costs. A down payment serves to pay the costs not covered by the loan, to reduce the financed amount and to demonstrate regular savings. The bank verifies its origin: each significant sum must be linked to a dated document.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The down payment has three roles: to pay the costs not covered by the loan, to reduce the financed amount and to demonstrate a capacity for regular savings.
- No legislation mandates a minimum down payment percentage: it is market practice, not a rule enforceable against the bank.
- A sum lent by family is never a down payment but a debt that weighs on the application; a declared and traceable gift, however, is one.
- The zero-interest loan is not a down payment: it is listed among the loans taken out and is included in the debt calculation.
- An unexplained down payment blocks more applications than a down payment deemed insufficient: link each significant sum to a dated document.
“Ten per cent down payment is required”: no text imposes this. An application succeeds when the down payment covers the costs, demonstrates regular saving, and every sum has a documented source. A key point of your purchase project; with no down payment at all, see the purchase without a down payment in Lyon.
What is the down payment for
To pay the costs that the lender does not finance, to reduce the portion of the price borrowed, and above all to prove that you know how to save.
- The costs: transfer duties, notary, guarantee, file (the budget, the list of costs).
- The proportion: the less you borrow relative to the value of the property, the less the lender risks.
- The proof: years of automatic transfers carry more weight than a sum received just before the submission.
Is a minimum down payment mandatory?
No. The regulations govern the debt-to-income ratio, not the initial contribution. The threshold that everyone cites is a practice, not a rule.
Critère d'octroi opposable aux établissements de crédit. Il porte sur la charge de remboursement rapportée aux revenus, jamais sur le montant de l'apport.
- En vigueur depuis le
- Source
- Décision D-HCSF-2021-7, art. 1er — Légifrance
No refusal “for insufficient down payment” is regulatory: the lender judges the proportion too high for this profile. This can be prepared (the debt-to-income ratio).
What counts as a down payment, and how long it takes
Any sum that you can freely dispose of, with a justifiable source, and with no debt attached. A borrowed sum is never a down payment.
| Resource | Time to availability | What the bank requires | The pitfall |
|---|---|---|---|
| Bank savings (savings accounts, current account) | Immediate | Statements, history of deposits | A balance that appears suddenly requires an explanation |
| PEL and CEL | A few days after closure | Plan statement, closure breakdown | Closing an old plan can cost more than it returns |
| Employee savings (PEE, PERECO) | Several weeks | Certificate, reason for early withdrawal | The main residence qualifies for withdrawal; rental investment does not |
| Life insurance | A few weeks depending on the insurer | Redemption request, transaction statement | Taxation of the redemption; uncertain deposit period |
| Family gift | Immediate once transferred | Gift declaration, proof of transfer, letter from the donor | If undeclared or untraceable, it blocks the file |
| Proceeds from a resale | At the deed of sale | Preliminary sale agreement, notary’s breakdown | The money arrives after the deed, not before |
| Bonus, thirteenth month, severance pay | On the payment date | Payslips, final settlement statement | If it is to be received, it is not a down payment |
| Asset disposal (shares, cryptocurrencies) | Variable | Transaction history, platform statements | Strict traceability; sell before submitting the application |
The PTZ, assisted loans, family loans: not a down payment
The PTZ is a loan: it is amortised and counts towards the debt.
See the PTZ and debt. Action Housing, social accession, employer loan: these are also loans. A sum lent by your parents is a debt; if given, it is a down payment. Choose, and write it down.
Justifying the source of funds without delaying the file
The lender must know the origin of the funds: this is a legal obligation of vigilance. Each significant sum must be linked to a dated and documented event.
An unexplained contribution delays the file: a round sum, with no description or supporting document, coming “from the family”.
- One transfer, one reason: “gift from Mrs X”, not “transfer”.
- One sum, one document: statement, transaction record, deed, certificate.
- Nothing at the last minute.
Family gift: declare, trace, date
The beneficiary declares the manual gift: this dates it and opens the tax allowances.
Le montant et les conditions d'âge et de parenté sont fixés par le code général des impôts et se cumulent, sous conditions, avec les abattements de droit commun.
- En vigueur depuis le
- Source
- Article 790 G du code général des impôts — Légifrance
Transfer from an identified account, never cash. Declare shortly after the gift (file errors).
Resale: the trap is the date
The money arrives at the sale deed, not necessarily before your purchase. Otherwise: deeds on the same day or bridging loan.
Borrowing 110%?
This still exists, profile by profile: the lender lends more than the value of the property and seeks compensations. The cases where the answer is yes and no: the purchase without a contribution. An old home savings plan can also support a loan entitlement.
Keep savings after the purchase
The lender looks at what remains after the transaction. A modest down payment with a buffer is less concerning than a file with no savings.
- The non-negotiable: acquisition and guarantee costs.
- The prudent: moving, kitchen, council tax, unforeseen expenses.
- The profitable: beyond that, every amount contributed reduces the borrowed capital.
More down payment, a lower rate?
A lower repayment amount may improve the pricing, without any automatic rule or identical standard from one bank to another.
- Crossing a repayment threshold may change the pricing scale.
- The guarantee decreases with the amount borrowed.
- Residual savings sometimes weigh more than the down payment.
The right question: what do you have, on what date, and what will remain the day after signing? Have your down payment assessed by telephone.
Create your file and submit your down payment evidence once.
Sources
Read next
- How much can I borrow? Mortgage capacity in Lyon
- Buying without a deposit in Lyon: in which cases is it still possible Buying without a deposit in Lyon: the profiles still financed, what the lender requires in compensation, and the six situations where the answer remains no.
- Does the PTZ count towards your debt-to-income ratio? Can it be used as a down payment? Yes, the PTZ counts in your debt-to-income ratio from the end of the deferral; no, it does not replace a down payment. What the lender calculates.
- Family loan for the deposit: how to draft it, declare it and present it to the bank A family loan complements the deposit, but the bank counts it as a debt. How to draft it, declare it, choose the repayment schedule and present it.
- First-time buyer in Lyon: the real budget of a first purchase, line by line Transfer duties, notary fees, guarantee, down payment, works: the full cost of a first purchase in Lyon, item by item, with the cash flow schedule.
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