French mortgages and property loans

We are not financial or mortgage experts. If you're planning on obtaining a mortgage to finance your purchase of a house in France it's well worth the cost to obtain advice from a professional.

Things to think about before you apply for a French mortgage:

Mortgaging a home - whether it's your permanent residence or a second home - in France involves a lot more than just mortgage terms and rates. Unless you live in a euro country you have to consider currency fluctuations. This can be a major consideration.

You will have to decide whether you want to borrow in your home country or in France. Sometimes the easiest way to do things is to borrow against your permanent home, in your home country. No worries about currency fluctuations and all the documentation is in English.

French mortgage lenders base their decisions on a number of criteria including your ability to repay and your age.

It can take longer to be approved for a French mortgage and you have to pay a registration fee to a Notaire but rates can be as much as 2% lower.

There doesn't seem to be a tradition of lending against the equity in a property so if you need to borrow for renovations or to put in a pool it's easier to do it as a mortgage when you buy the house. Much more difficult once you own the house.

When to start arranging a French mortgage?

If you're going to want a mortgage on your French property you should start investigating it as soon as you start looking for a house.

Once you've decided on an area and have a good idea of how much you're going to need you should start the application process. It's much better to have your financing in place when you make the offer. Some French sellers won't enter into a compromis that contains a clause suspensive specifying that you're applying for a mortgage.

Who should you talk to about arranging a French mortgage?

If you've decided to apply for a euro mortgage in France you can do it by yourself or deal with a financial consultant or mortgage broker. If you decide to do it yourself and your French isn't terrific take a translator to the bank with you.

The downside of that is if the first bank turns you down you have to start over with another bank. Personally I would talk to a couple of mortgage brokers and financial advisors and see who I felt comfortable with and use one of them. They have good contacts and can make simultaneous applications. You'll get an answer much faster than you will on your own.