Home mortgages in France

-       First priority mortgage in the property abroad

-       Maximum loan to value 70 %

-       Maximum duration, 30 years

-       Minimum loan amount for individuals, EUR 150,000

-       Minimum loan amount for companies, EUR 500,000

You can apply for a preliminary mortgage approval even before finding the property you want to buy. A preliminary mortgage approval is a useful document stating the Bank’s willingness to lend you a certain sum of money based on certain assumptions. Once you have obtained a preliminary mortgage approval, you are in a position to act quickly when the right opportunity comes up. Preliminary mortgage approval are not mandatory for the process of finding your dream house; however, preliminary mortgage approval enable potential sellers to be confident in your ability to finance a purchase.

If you have already found the property you want to buy, we will issue a loan offer once your loan application has been approved, and then start the financing process.

Due to the French inheritance law, it could be an advantage to apply for the loan as the same time as you buy the property

Please contact us for an informal conversation or send a loan application.
 
» Explanation of Preliminary mortgage approval

Yes, it is possible to refinance loans from another bank.
The processes will be different, but our advisers have long experience in finding good solutions.

Please contact us for an informal conversation or send a loan application.

It is possible to take up loans through your own company. If you want to mortgage a property owned by a company, the bank will always require a personal guarantee from the main shareholder(s).

Inheritance and generational change are important subjects for many people.         

When you buy and become the owner of a property abroad, you have to deal with inheritance rules and taxation in the country where the property is located. Therefore, it may be wise to seek advice from a lawyer early in the purchase process to clarify the implications and find the best solution for you and your family. Please note that the purpose of the loan (financing/refinancing) can have consequences on the tax regime applicable.

A generational change does not necessarily involve high costs. If you intend on buying a property in France, it is important to plan the ownership structure.    

To get a total overview of French inheritance tax legislation, we recommend that you contact a lawyer for further advice.

Inheritance and generational change are important subjects for many people.

When you buy and become the owner of a property abroad, you have to deal with inheritance rules and taxation in the country where the property is located. Therefore, it may be wise to seek advice from a lawyer early in the purchase process to clarify the implications and find the best solution for you and your family. Please note that the purpose of the loan (financing/refinancing) can affect your opportunity to deduct debt that is secured by inheritance tax, gift tax and wealth tax. Please consult a tax adviser for an assessment of your individual situation.

A generational change does not necessarily involve high costs. If you are intending to buy a property in France, it is important to plan the ownership structure.

To get a total overview of French inheritance tax legislation, we recommend that you contact a lawyer for further advice.

A property purchase in France takes longer than we are used to inScandinavia. Therefore, it is an advantage to have the pre-qualification letter ready as early as possible. Our advisers will help you through the entire process.   

We have listed the main steps below.

• The loan application is submitted and processed, normally within two to three weeks.
• A preliminary mortgage approval is sent to you once the loan has been pre-approved.
• Once you have found the property you want to buy, you send us the signed pre-agreement (compromis de vente) for the purchase. This agreement has a 10-day sole cooling-off period which gives you the opportunity to cancel the purchase without giving any reason, subject to no extra fees.
• 10 per cent of the purchase price must be paid by the end of the cooling-off period.
• The bank issues the loan agreement, which must be kept for eleven days before being signed and returned. We open an account for you in DNB Luxembourg.
• The signed loan agreement is sent to the notary public. The notary will contact you directly to obtain the documents required for -insuring the security interest. This part of the process can take up to three months.
• A date is agreed for the meeting with the notary, and the loan amount is transferred to a client account with the bank's notary. (Own capital and funds to cover external costs). 
• You take over the property, the security interest is ensured, and settlement takes place in this meeting.

If you have any questions, you are always welcome to contact us.

In France, the notary public has a key role in both the property purchase and the loan process. All parties must have their own notary, and it is therefore important that you use a notary who speaks a language you understand. We cooperate with notaries in Paris who speak French and English, and who will assist the bank in perfecting the security interest in the property. The loan amount is transferred to the notary in connection with the transfer of the property. The borrower can use the same notary as the bank if he/she so wishes.

The responsibilities of a notary include:        
• Acting as a mandatory and unbiased party in all real estate contracts
• Carrying out comprehensive administrative controls (titles, encumbrances, certificate of completion etc.)
• Being responsible for the settlement, the repayment of debt and the registration of the property
• Offering assistance and advice in legal and tax matters

An appraisal is always required for properties in France in connection with refinancing (called hypotheque/mortgage in French) and for property purchases > EUR 1 million.

The bank always requires the services of a French appraisal company and will organize this, while the customer pays for the appraisal.