The questions international buyers ask most often about financing a French property.
Yes. French banks lend to non-residents regularly, and several have departments working in English. You should expect to provide a larger deposit than a French resident, commonly 20 to 30 per cent of the price, and to supply more documentation.
The binding constraint is usually the debt-to-income ratio. French lenders work to a maximum total debt service of around 35 per cent of gross income, counting every loan you hold anywhere in the world, not just the new one.
Plan for 20 to 30 per cent of the purchase price as a non-resident, plus purchase costs of roughly 7 to 8 per cent on an existing property. Those costs cannot normally be borrowed.
Not necessarily, but the legal documents are in French and are binding in French. Several banks work in English with international clients. The notaire can arrange an interpreter for the signing, and this is common.
Three to four months from accepted offer to keys is typical. The mortgage window written into the preliminary contract is often around 45 days, and a statutory ten-day reflection period applies to the loan offer before you may accept it.
Provided the financing condition was included in the preliminary contract and you applied within the stated period, the sale is cancelled and your deposit is returned in full. Keep the written refusal.
French mortgages are in euros. If your income is in another currency, exchange-rate movements change what the loan costs you in real terms, and lenders often discount foreign-currency income when assessing your ratio.
It is not compulsory in law, but every lender requires it in practice. You are free to use an insurer other than the bank, and since the Lemoine law you can change insurer at any time during the loan without penalty. This is frequently where the largest savings are found.
Yes, and an SCI is commonly used for joint or family purchases because it simplifies succession. It changes the tax treatment and lending terms, so it is a decision to take with a French accountant before signing anything.
Yes, though borrower insurance becomes more expensive with age and can push the all-in rate towards the usury ceiling, which is the practical limit. Shorter terms and larger deposits help.