French mortgages
Applying for a Leaseback MortgageYou can obtain a French mortgage to buy your French leaseback property even if you do not reside in France. This is an attractive option in terms of interest rates, lending conditions and the benefit of not encumbering property in your home country with debt related to the French investment. There are also tax advantages if you let out the property, as taxable rental revenue in France can be reduced by interest paid on your French mortgage.
French mortgage options vary widely between lenders from the interest rates, loan to values, cost of life insurance and flexibility to make early repayments.
Banks generally award loans of up to 80% of the price including tax or up to 100% of the price excluding tax depending on the programme.
To determine your eligibility, the bank will look at the total of the new French mortgage plus any other loan payments or rent for housing. These should not exceed one third of your monthly income before tax. Overall net equity and the amount of funds remaining each month once all your debts have been paid are also taken into consideration. Like many things, the calculation is more an art than a science.
Mortgage options include interest only, repayment, or a combination of both. You also have the possibility to defer payments until you begin receiving rental income. The good news is that you can fix the interest rate for the entire loan duration if desired.
Differences to note when obtaining a French mortgage:
• French banks require a life insurance policy for the mortgage
• Your mortgage payment must be debited from a French bank account. This can be opened without meeting the bank in person.
• French banks charge a filing fee of up to 1% of the loan amount. This can be reduced by working with our financing partner.
Apply for your free decision in principle analysis
For your free decision in principle analysis, please click here to complete the request form.
Frequently asked questions and mortgage calculator
For in depth information on French mortgages, taxation and the purchase process in France click here to visit the France Home Finance FAQ site.
