Mortgage & financial advice



French and other European banks have developed specific mortgage products for non-French residents buying property in France.
Crédit Foncier, partner of www.frenchnotaire.com, is a credit institution which has specialiszed real-estate and asset financing for more than 150 years.
 
 A
Many purchase a permanent or second home in France with a mortgage. Each situation is different, but in simple terms, you have two options: borrow in your own country through specialist lenders for overseas properties, or borrow in France through French-based banks.
 
 B
1 -Common features of French mortgages
  • Loans are available, in euros, to the majority of non-residents for the purchase of the property and additional work (contruction, swimming pool,etc...)
  • 80% maximum loan-to-value of the purchase price and/or additional expenses and renovation
  • Terms 5-20 years or age 70
  • Capital repayment is the predominant lending type
  • The mortgage should be covered by a suitable life insurance
  • 3 times your gross annual income is a typical maximum borrowing amount
  • Mortgage cost (frais d'hypothèque). The disbursment mortgage must be registred by the notaire in the Land Registry at a cost of around 0.4 to 1%
  • The administrative process from application to disbursment can take up to two months. It is best to contact your bank prior to entering into any provisional purchase contract.


    • 2 -Fixed-rate mortgage
    The mortgage rate is fixed for the whole term so you'll know exactly how much you will have to pay in euros and the number of payments. If you take out a fixed-rate mortgage, the option to convert to a variable-rate mortgage at a later date is not available. There is usually an early redemption charge payable on any fixed-rate mortgage.

    3 - Variable-rate mortgage
    Variable loan rates are linked to changes in the European Central Bank lending rate Euribor
    The monthly payment on your loan usually remains stable when rates change, with the loan term varying according to the change in rates. Loan rates are usually reviewed quarterly.
    There is usually no redemption charge for early repayment with a standard variable-rate loan and, of course, you can often convert it to a fixed-rate mortgage at any time.
     
     On-line loan simulation request

    Our partner Crédit Foncier has prepared calculation tools for your reference.