French Mortgages and Finance

Unless you are a cash buyer, finance is required to secure your purchase. Some buyers choose to arrange finance in their home countries, with equity release or re-mortgages, while others consider obtaining finance in France. French mortgages represent good value compared to rates in the UK and the US and are freely available to foreign buyers. Non-residents can normally expect to be able to borrow 80% of the value of the French property, rising to 85% in some cases, leaving 15% or 20% of the value to be paid by the buyer, with the duration of the loan between 7 and 25 years.

French mortgage lending requirements are based on a debt to income ratio, instead of the salary multiplier calculation used in other countries. As a general rule, total debt must not be greater than one third of your gross monthly income. French banks have recently relaxed this rule allowing borrowers more flexibility.

Under French law, the 'compromis de vente' will automatically contain a mortgage clause that states that should finance be declined from French mortgage providers, the prospective buyer is entitled to a full refund of his/her initial deposit of 5% or 10%.

The following documentation will be required to obtain a French mortgage.
If you are employed:

If you are self-employed, all the above, plus: