Getting A Mortgage In France

The simplest way to finance the purchase of a property is through a French mortgage provider with a mortgage in euros.

Shop around―low interest rates make the business of lending very competitive. French interest rates are based on the Euro Interbank Offered Rate (the Euribor) and are usually linked to a Euribor variant. See www.euribor.org for all current rates.

The French tend to prefer fixed-rate mortgages more than variable rate. Life insurance linked to the loan is required, and you’re not going to be able to get a term beyond the age of 70, possibly 75, so if you’re 60 right now, you could hope for a 15-year insurance term at the longest, which means a 15-year loan. Better than nothing, but perhaps not what you were hoping for.

Once you have chosen a mortgage lender, that company must send a contract by mail, detailing the repayment timetable and the agreed upon interest rates. Once you receive these documents, you must wait at least 10 days (but no more than 30 days) before signing and returning them. The 10 days are known as the period of reflection.

Once signed, there is no backing out of the contract (unless any conditions of sale of the property for which you are purchasing a mortgage, included in the compromis de vente, are not fulfilled).

You will also need to purchase insurance for your mortgage. In the past you had to buy the insurance from the lending bank. That has changed and you are free to shop around for your insurance, though some banks may still try to insist that they can only accept their own insurance. If they refuse your chosen insurance, they must put their objections to you in writing.

Documents needed to take out a mortgage include:

• Your last two tax bills
• Your last three pay slips or proof of pension income and your last three bank statements
• Original passport
• Proof of current residence (e.g. a utility bill or fixed line phone contract)
• A compromis de vente if you already have one

Finding a mortgage lender and taking out a mortgage is not something you want to do in French, unless you are fluent and understand the language and cultural differences. If you do not speak French, contact an English-speaking agent, bank, or realtor.

France Home Finance (www.francehomefinance.com) specializes in French mortgages for international buyers. Founder and managing director, Tahminae Madani, is a Live and Invest Overseas expert who fully understands the complexities that expats face.