How to get a mortgage in France: Features of the system, and who can count on that
France continues to be in the list of top 20 countries where foreigners are willing to buy real estate. However, due to relatively high prices - not everyone can pay a one-time desired accomodation. So that the dream of living in France does not remain a dream - the government has developed a mortgage payment system. It may be used by non-residents of the country almost on the same conditions as the nationals of France.
In addition, it is possible to get a mortgage and buy property in a remote format. The country has a lot of companies that can represent your interests on financial and legal issues.
Hermitage Riviera agency's customers are helped by us to find competent representatives, and we also can protect the client's interests in a number of issues related to the selection and registration of property documents.
Who can get a mortgage in France
It may be citizens of France or other countries:
- under the age of 75 years;
- having a stable income, good credit history and guaranteeng the solvency of the entire period of the mortgage loan.
According to mortgage law in France It prohibited the eviction of the property owner, if it is his only home, the state and the responsible organizations are closely watching the candidates before endorsing them a loan to purchase real estate.
What kind of accommodation is possible to take out a mortgage
Not all real estate that you liked, you can purchase a guarantee of banks or the government. Law also settled the issue: you can get a mortgage on the property in the primary market, or new building. Under other circumstances, you need to take out a loan, to negotiate about the installment plan - to solve the problem in other ways.
Terms of mortgage in France
Currency: State (EUR) and only there you can arrange a mortgage.
Mortgage Amount: covers 65-70% of the cost of accomodation, so the first payment should be 30-50% of the total value of the property.
Term: 5-20 years.
Age: from 21 to 75 years old.
Calculation: monthly, the amount is deducted from the official income and does not exceed 33%.
Interest on mortgages 1-4% per year, depending on several factors and is calculated already directly with the buyer.
How to arrange a mortgage in France - step-by-step instruction
- Choose accomodation.
- Sign a preliminary agreement to acquire it.
- Submission of application and required documents to the bank.
- Waiting for a response from 3 to 30 calendar days.
- Obtain the prior consent of the mortgage.
- Signing a contract with the seller to purchase real estate.
- Transfer of the first agreed payment from the buyer.
- Mortgage lending and the subsequent calculation.
Where to apply for a mortgage
These issues are dealt with banks in France, as well as private agencies and brokers. If discussions on a loan in the bank must be the presence of the buyer, then produce the desired contract for a mortgage through a private company may be executed in a remote format.
What kind Documents are required for a mortgage in France
To apply for the real estate lending, it is necessary to form the following documents:
- application for a mortgage loan at the bank sample (in some cases can be found on the Bank's website, request by e-mail or directly take in a bank); • copy of the passport;
- income statement, issued not later than three months prior to application;
- bank statement on the status of the bank account, which will be able to confirm the solvency;
- a copy of the documents on the ownership of real estate in the country of nationality of the buyer;
- extract from the tax for two years (for non-residents need to provide an extract from the French tax authorities, if previously paid taxes or doing business in the territory, as well as extract from the tax authorities of the country of residence / residence);
- preliminary contract for the purchase of real estate;
- copy of marriage certificate (divorce);
- birth certificate of each child (if there is any);
All documents must be translated into French and certified by a notary. The application is considered within a calendar month.
You will also be interested to know what taxes will be paid in cgnnection with the acquisition of real estate in France. Previously, we have described all the details here https://hermitageriviera.com/blog/8/taxes-on-real-estate-in-france-on-the-purchase-maintenance-accommodation-sale-for-citizens-and-residents