Quick recap on the French lenders’ risk assessment process
French lenders don’t carry out credit checks on applicants but they base the approval process on your financial situation and indebtment rate. Pragmatism and transparency are key to assess risk in France.
You must pass strict debt-to-income checks and provide extensive documentation to prove that you can afford the repayments.
Many lenders will not consider overtime, bonuses and allowances as income to determine your debt-to-income ratio. Existing rental income is also adjusted at 70%.
On the other hand, French lenders will consider many different types of standing orders as debt such as loans, mortgages, rent, car loans, student loans, child support and credit cards (with a high balance).
In short, your financial liabilities must add up to less than 33% of your household income.
Other factors determining eligibility include:
- Employment: Permanent employment is preferred for high Loan-To-Value financing (probationary period must be purged).
- Age: Applicant must be less than 75 years old by the end of the mortgage.
- Income left over after the charges: Family size and financial responsibility are important. The lender will check that you have a sufficient amount of income left over after all charges are paid. The amount is based on the number of family members in the household.
- Mortgage Life Insurance: your application must be accepted and must cover 100% of the mortgage at minimum.
- Bank account in France: You must pass a security financial check in order to open a French bank account
- Property: A valuation of the property which you are purchasing is mandatory. Lenders will look at the resale potential when processing your application.
- Personal contribution: You must justify covering the closing costs and part of the purchase price to apply for a mortgage.
Our dedicated team of brokers can determine your mortgage capacity and review the efficiency of your financing to ensure you are receiving the right mortgage solution for your purchase in France.
Current mortgage rates for April 2022
| Fixed rate(1) | Term | Monthly repayment
for 10 000€ borrowed |
|---|---|---|
| 1.28% | 10 years / 120 months | 88.82€ |
| 1.44% | 15 years / 180 months | 61.80€ |
| 1.65% | 20 years / 240 months | 48.95€ |
| 2.25% | 25 years / 300 months | 43.61€ |
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
Submit your request for information
With no commitment on your part, submit your detailed request in order to obtain the best financial solution for your project. A French mortgage specialist will contact you within 24 hours.