Finance and Mortgages in France and Monaco
It is generally quite easy to obtain a mortgage from a bank here to buy property in France or Monaco, especially for EU members. If you are resident outside of the EU you will be limited to 50% of the purchase price.
For EU residents you will need to give passport details, marriage details, proof of earnings for the past three years and a list of all current loans.
The banks will usually lend you up to a third of your monthly disposable salary, ie If you have 5000 euro left after all other obligations have been paid, that is the maximum monthly amount the bank will allow you to repay.
For EEC residents 80% of the purchase price is the maximum most banks will offer to cover (excluding Notary fees) for a period of up to 25 years, depending on your age.
You can have a fixed rate loan or variable rate or a combination of both - even a multi currency loan. Currently rates are far more favourable here than in the UK , and interest only loans are also a possibility.
Some banks will allow you to adjust the term of your loan according to your variations of income, and postpone repayments when needed.
The following financial options are available to foreigners in France:
* Mortgages for principal and holiday homes
* Transfer of the loan to a new purchase to keep an attractive rate and avoid additional charges
* Transfer of the loan to a new buyer
* Off plan property purchase finance
* Equity release
* Bridging loans
* Home improvement loans
* Offshore back to back loans
Even if you are not considering purchasing with a loan, there is one very good reason to take out a mortgage when purchasing property in France: it avoids or defers your exposure to ISF(wealth tax).
I would suggest this is worth considering on all purchases over 750,000 Euro which is the threshhold where ISF kicks in.
As is often the case, some banks give better terms and conditions for a particular type of finance than others, and knowing who to go to is very important. If you are self employed or do not have all the usual paperwork necessary to qualify for a loan, there are some banks that will be more flexible and work to find a solution. Others stick rigidly to their rules.
I have extensive knowledge and first hand experience with many banks and financial institutions.
If you would like further advice or a quote for a mortgage please click here.