What is the equity?

Purchase
Taxation

Equity is the personal contribution you have to finance the purchase of a property.

What is equity capital made up of? 

 

The equity can be made up of :

  • Your current and savings accounts;
  • Your pension fund assets (2nd pillar);
  • Your 3rd pillar assets;
  • Inheritance advances;
  • Donations from your relatives;
  • Or other sources depending on your personal situation.

 

What is the purpose of equity capital? 

 

If you want to buy, it is very likely that you will need a mortgage to finance the property. Generally speaking, your loan will cover 80% of the price of the property. You will need to finance the remaining percentage yourself, so that's what your equity will be used for. 
 

By Charline Demange, July 21, 2022

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