Main Points French Mortgage
As a general rule of thumb, you can borrow 5 times your individual or combined (spouses/ partners) income for a repayment mortgage in France, less the value of your existing mortgage balances.
The maximum loan to value is usually 85% for outright properties or 70% for leaseback properties.
French banks usually calculate 33% of your disposable income as the maximum they will lend you. The formula is: (annual gross income + 80% of any rental income) x 33% / 12. Basically if you have 3,000€/month disposable income you can borrow to a maximum 1,000€/month in French mortgage repayment.
– Salaried income
– Dividends with a three-year track record
– Other regular income from investments
– Income from partnerships
– Pension income
– Rental income with tenancy agreement
some common French Mortgage Refusal Reasons
If you are self-employed or a company director the French bank will ask to see three years of tax returns if you are self-employed or run a company. For some cases where the client has plenty of cash but no 3-year record, private banking can be an option. In return they will insist on the client to deposit a minimum of 500K with them.
If a life insurance is required with the French mortgage and the client is unable to obtain one due to medical conditions this is a case for French mortgage refusal.
French banks will require the client to have sufficient funds on the side once French mortgage is accepted. It is usually equivalent to 12 months of French mortgage repayments or 15,000-20,000€.
More Information about obtaining a french mortgage
Please contact our team for questions and advice about purchasing a ski property with a French mortgage.
Our consultant will quickly inform you how much you can borrow and send you simulations.
looking for a ski property?
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