You may not have enough money to pay the cash contribution directly when buying a home. The choice is then to either wait to buy a home or try to borrow money for the cash contribution.
The first thing to know if you want to borrow money is that it is not possible to have the housing as collateral for the loan as there is a limit of 85%. However, there is no obstacle to taking a regular private loan that is large enough to afford the cash contribution.
Then whether the lender where you intend to put the mortgage on agrees with this or not is another question that you cannot answer in advance. Instead, you can turn to another lender and borrow the money there.
A disadvantage for those who have not already saved money together for a cash contribution will have a significantly higher monthly cost when adding a loan. It is also the case that a private loan is more expensive than a mortgage loan when there is no collateral.
Since it will be higher costs, it is important to include this in your calculation. Otherwise, it is easy to calculate the monthly cost of the mortgage itself and that the extra loan is forgotten.
A good basic rule is to never get into potential financial problems just to borrow money for a cash bet. Then it is better to wait and instead buy another home that better aligns with the economic reality.
If you choose to borrow money for the cash contribution, it is important that you compare the interest rates the different lenders offer. To help you along the way, you can visit our department where we compare interest rates for private loans.