Mortgage without cash

Think about whether you want to lend to the cash bet

Since 2010 there have been housing mortgages, which means that home buyers themselves have to save up to a cash deposit equivalent to 15% of the purchase price. As a rule, you must have your cash deposit ready before applying for a home loan.

However, you can get a home loan without a cash deposit by applying for a cash deposit loan.

The cash contribution can be financed with a loan

The requirement for cash in case of housing purchases exists to protect borrowers from overpaying. However, the requirement has also meant that some groups who find it difficult to save themselves for a cash deposit have made it more difficult to enter the housing market. This is a big problem for many, especially young, home buyers and that is something that many lenders also saw.


To solve this problem, some lenders offer and offer their customers an opportunity to lend to the cash contribution - a so-called cash loan. A cash collateral loan is not a home loan as collateral without a normal private loan, which means that it is not covered by the rules on mortgage loans.

What does it mean to lend to the cash contribution?

 To lend to the cash contribution means that the lender instead of having a mortgage loan has two separate loans: a mortgage loan and a private loan. The home loan, which may amount to a maximum of 85% of the purchase price, serves as a common mortgage with the home as collateral and private loan, which is the remaining 15% of the purchase price, finances the cash contribution.

Having two loans instead of one means that the borrower must, of course, have to pay back on both loans and therefore the cost of the loan will also be higher than if the borrower only had a mortgage loan.

To consider before borrowing for cash Financing the housing purchase with both a home loan and a cash loan can sound like a good and smooth idea. But just like with all long-term financial commitments, you should make a careful calculation of your financial conditions. You should always have the financial conditions to be able to pay back on all the loans.

Because you have to pay interest on a cash deposit loan, it's generally cheaper to save you a cash bet than borrow it. On the other hand, a cash loan can be a great solution that suits you and your situation perfectly when you need relatively fast somewhere to live. Only you can make that balance.

First, check if you can afford mortgages and cash deposits
A good start is to get the calculator and start counting on what expenses you have and what a cash loan and mortgage loan would mean for your finances.

What is your housing cost today and what would it be if you borrow and buy a home instead? If you live in a very expensive second-hand apartment, it may even be cheaper for you to buy a home instead.

How do your earnings look today and how will it look in the future? If you have a solid job with a good salary, you probably have a better financial starting position than if you have temporary employment.
Be careful in examining your finances before borrowing so you avoid unpleasant surprises once you have bought a home.