Get a 100% mortgage

A 100% mortgage is a type of home loan in which the bank finances 100% of the property’s purchase price, meaning you do not need to provide a down payment. Unlike most traditional mortgages, where the bank usually covers up to 80% of the value, this type of mortgage covers the full amount, allowing you to buy a home without prior savings.

However, it is important to note that you will still need to pay the associated taxes and expenses, which usually amount to between 6% and 10%.

These are the main characteristics of a 100% mortgage:

• It finances 100% of the purchase price (not to be confused with the appraised value).

• It usually requires additional guarantees: guarantors, a second mortgage guarantee, stable and high income, or being a career civil servant.

• Interest rates are generally higher than conventional mortgages.

• Few institutions offer it directly; it is negotiated case by case or with the support of a mortgage broker.

• Sometimes, it is only offered for the bank's own properties or if the appraised value exceeds the purchase price.

Getting a 100% mortgage is not easy, but it is possible if you meet certain requirements. Here are some key steps:

1. Work with a specialized mortgage broker: they will help you negotiate with institutions that accept this type of mortgage.

2. Have a solid financial profile: stable income, no debts, and demonstrable savings capacity.

3. Look for properties appraised above the purchase price.

4. Provide additional guarantees: such as a guarantor or another property as extra collateral.

5. Consider buying bank-owned properties: they often offer special conditions.

The most common profiles that can access this type of mortgage are:

• Young professionals with strong career prospects (e.g., healthcare workers, civil servants, engineers, etc.).

• Buyers with solid guarantors, such as parents or relatives with assets.

• Individuals with high and stable income, even without savings.

• Clients purchasing properties owned by the bank.

• Buyers whose property appraises significantly above the purchase price (the difference mitigates the bank’s risk).

Advantages:

• No savings required for the down payment

• You can buy before accumulating capital

• Investment opportunity if the property appreciates

• Eases access to housing for young or first-time buyers

Disadvantages:

• Higher long-term debt

• Higher interest rates and possible additional fees

• Greater risk for the bank, which may result in stricter requirements

• You may still need to cover purchase-related costs separately (notary, taxes, etc.)