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French mortgage products


Mortgage types

Repayment mortgage

The monthly repayments consist of repaying the capital amount borrowed and the accrued interest. The big advantage of a repayment mortgage is that at the end of the mortgage term, the full amount of the debt has been repaid

Interest Only

Interest-only loans are popular ways of borrowing money to buy an asset that is unlikely to depreciate much and which can be sold at the end of the loan to repay the capital. However the banks in France require you have assets in excess of the loan amount to be able to pay of the mortgage anytime and without having to sell the property.
You can only finance holiday home or investment propeties with this type of mortgage.
Affordability calculations are done with the repayment mortgage instalment.

Hybrids

A combination of Repayment and Interest Only. The requirement to have assets in excess of the amount interest only.


Type of projects you can finance

Acquisition

The most common is the acquisition mortgage, this is to finance part of the purchase of a French property for a principal or holiday home or for an investment property.

Refinance

While the rates are at historical lows, it is highly recommended to refinance your mortgage on a fixed rate for the term.
A full mortgage application has to be done with a valuation of the property done by the bank's assessor.

Post Finance

You purchased you property cash. You can post finance it up to 6 months after its purchase at the same conditions as if it was an acquisition mortgage.

Equity Release

You can release equity from your property if:
  • You are salaried or retired - not self employed
  • If your property has at least 30% equity left after operation
  • If your project to release funds meets the banks criterias
  • Contact our consultants to find out more


Type of available rates

Fixed rate for the term

The rate doesn't change for the life of the mortgage. It is the safest product available. French banks typically apply an early redemption penalty with fixed rates.

Variable rate

Ideal for short term operations where you will pay off the mortgage early.

Capped rate

A good compromise on a safe product and flexibility.




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