How is my debt ratio calculated?

One of the main key calculation French Banks use to determine the eligibility to borrow is the 33% debt to revenue ratio.

Your monthly payment related to the new mortgage, plus the existing loan payments (other mortgages, rent for residence, personal or car loans), should not exceed one third of your net monthly income. If you are married, your spouse’s loan payments and income are taken into account.

In order to determine your stable income, the banks will look at your salary, rental income (70 to 80% of the rental income is used for the calculation), pensions and annuities received. You can include the allowances and social benefits if these are maintained during the loan duration.

If you are self-employed, the banks will calculate the income by taking your percentage ownership of average net profits (annual salary and dividends) over the past 3 years.

Why should I choose French Mortgage Experts of Carte Financement?

Why is it better to use a French mortgage broker rather than a French bank in direct ?

What is the difference between a pure lender and a retail bank?

Can I borrow if I am self-employed?

Why raise finance in France rather than in the country where you live?

I have the cash to buy my French property, why should I use a French Mortgage?

I don’t have sufficient cash to qualify for a mortgage, can I release funds from my property assets?

What are the essential elements taken into account by the banks in the analysis of files?

What documents do I need to apply for a French mortgage?

Can I borrow if I have no financial assets?

All the answers to the frequently asked questions about French Mortgage.

Contact us

Interview on Capital.fr


"Many thanks for your support and fast responses."
Paul T.

See all FAQ