Get the best mortgage deals in France when living abroad
Finding the right mortgage lenders when living abroad tends to be like searching for a needle in a haystack. In France, select lenders do offer mortgage financing for applicants living abroad and earning income in a foreign currency. Homevest can help you compile your application and put you in touch with the right banks from the comfort of your own home.
If you are a part of the 2 million French expat population living scattered across the globe, it is also worth mentioning that you can be eligible for better terms for a cross-border mortgage. Read on to learn more about non-resident mortgage terms in France, or get in touch with our team to get the process started immediately.
What you should expect when applying for a mortgage in France
- Applicants living in the EU can get up to 80% of the property purchase financed.
- When living outside of the European Union, banks most likely will finance 50% of the value, but you can find yourself getting a higher LTV if you are a French citizen living abroad.
Other mortgage terms include:
- Max 30 years of repayment time
- Non-resident might not be eligible for the max period in all cases.
- Maintaining a debt ratio of 35% (French law dictates a maximum of 30% but banks tend to require a higher buffer).
- Your debt ratio is calculated as the amount of free cashflow you have remaining after deducting all monthly loan payments from your monthly salary.
- Purchasing a life insurance in France covering 120% of the mortgage and naming the lender as the beneficiary.
- Getting a property insurance.
Types of mortgages in France
- Fixed term mortgages are paid over 6-30 years.
- These can be denominated with either a variable interest rate or fixed interest rate, the latter being more common.
- Interest-only mortgages allows you to only pay interest throughout the mortgage term followed by a balloon payment of the full principle amount at maturity.
- These kind of mortgages are less common in France and the criteria for qualifying tends to be higher than for regular fixed term mortgages.
- Bridge loans of up to 2 years for customers needing financing for a new property whilst still owning their previous.
If you now find yourself wanting to explore your mortgage options for a property in France, please leave your information and Homevest will take it from there.