Tips on applying for a mortgage in France
APPLYING for a mortgage in France is not too difficult as long as you follow some simple advice, and have your paperwork prepared.
Mortgages or home loans (hypothèque) are available from all major French banks with Crédit Agricole the largest lender.
Borrowing in France is regulated and the financial establishments have to abide by certain rulings.
For example mortgage instalments cannot exceed more than one third of your average monthly income, this can vary and some banks are more flexible than others.
Many French people check with their bank in advance how much they can borrow before looking for a home, so they can be sure when they make an offer.
It is advisable to apply for your mortgage when you have signed or about to sign your preliminary contract, the Compromis de Vente.
And remember you are legally allowed to have a get out clause, or clause suspensive, in your Compromis for obtaining finance.
Applying for a mortgage does involve a large amount of paperwork here is a checklist of documents you may need to provide:
1. A copy of your passport.
2. A copy of your birth certificate.
3. A copy of your marriage certificate or divorce papers, if applicable.
4. A copy of your three most recent months continuous personal bank statements showing regular income and everyday outgoings, both in France and abroad.
5. A reference letter from your foreign bank (if you are not currently resident in France).
6. A copy of any loan statements.
7. A copy of any annual mortgage statements.
8. A copy of your most recent credit card statement.
9. A copy of your three most recent months pay slips and P60.
10. A letter from your employer confirming professional status, length of service, annual gross salary and your bonuses.
11. The last two years company accounts, profit & loss and balance sheets if you are self employed.
12. Your last two most recent personal tax returns if you are self employed.
13. A letter from your accountant confirming your income for the last three years and the source of this income.
14. Confirmation of the rental income that you receive (rental agreement, rent receipt, letter from the management agency).
15. Confirmation of the future rental income that you receive (rental agreement, letter from the rental agency).
16. A copy of the Compromis de vente (once this has been signed).
You may well find that the banks require other information depending on your personal situation.
For an initial, no obligation chat with a mortgage advisor who has detailed knowledge of the French system please fill out the following form.