French Residential Mortgage
Property Mortgage in France
It is the one that most of our clients are looking for. They are planning to buy a property in France and they want to put down 20% to 30% of the price of the property and they look for a French mortgage to cover the rest.
The property can be either an existing property or an off-plan one.
The guarantee that the bank will take is usually a “Privilège de Préteur de Denier” (PPD) or an “Hypotèque”. This legal charge on the property financed will give them the right to get the property back in case you don’t pay your monthly payment. When they have to resort to that stage they usually resell the property at a lower price in order to move fast.
Leaseback and Off-Plan Mortgages
Residential Mortgage, Leaseback and Off Plan Mortgages
Like residential mortgage, leaseback and off plan mortgages will follow the same rules. The only difference will be that the French mortgage funds will be released when the installments are requested by the builder of every stage of the building process. In fact, builder cannot ask for 100% of the price until the construction is over. This is the VEFA law which protects the consumer from fully paying for a property which wouldn’t be built in the end.
Please do note that your personal deposit will be used first before any euros are released from your French mortgage. It is also interesting to know that funds will be only released to pay an official invoice and some banks will require that the works has been done by a French firm. If not, they might refuse to finance these works.
French House with no French Mortgage
Having a house in France with no French mortgage on it can help you to finance other projects. For example you could repay a mortgage in your residential country and benefit from a favorable currency exchange or the difference between the existing rate and your new French interest rate. You could also finance the purchase of a boat or do some important works in your house.
It might also be possible if you have a low French mortgage left on your property.
Refine Your Mortgage
We are at a historically low level of interest rate so you could among the clients who did get a French mortgage at the time where interest rates were higher. In this case it could be interesting on a long term basis to refinance your mortgage to benefit from the low level of current interest rates. We just need 2 minutes to figure out how much you could save by refinancing. Feel free to contact us and we will be happy to see whether it worth thinking about refinancing.
You could also be interested in having lower monthly payments. This is possible thanks to today’s interest rates but also by extending the duration of your mortgage.