The process to obtain a mortgage in France for the expats is not easy and can be very long if you are not in touch with the write contact.
Most of the French banks do not finance the Expats as this is a non-usual situation for them, and they do not want to take any risk. However, some departments of certain banks offer this service, but not only, we can as well negotiate very good conditions.
The real estate investment is the only investment which enriches you with loan. There are no banks who loan you money to invest in the stock exchange market or for a life insurance as an example.
So, it allows you to benefit from the leverage « effet de levier ». The leverage is a mechanism in which we multiply the power the invested capital. The leverage allows you as well to use the bank money to finance your own property, but which will be reimbursed by the tenant of your property. The reimbursement of the mortgage will be mainly compensated by the rental income and also by personal saving effort.
The mortgage is possible with 10% down payment + the adding fees such as notary fees. Of course, it always depends about your personal situation and how we present your file.
The borrower insurance follows your investment for a better defense of your family regarding your investment. If previously you were not able to choose your insurance as you were obliged by the bank to get their own insurance, you can now choose any insurance and negotiate the best price.
It is also possible to change the insurance during the first year, if the new insurance offers the same guaranties for a most competitive price.
The new French law “Sapin 2” is under negotiation, to allow you to change your insurance each anniversary date of your contract. We will inform you once this new law will be effective.
In december 2017, we have been offered mortgage rate between 1.25% for 15 years and 1.45% for 20 years (excluding insurance). For exemple, in Portugal, the rates are more than 3% or even 8% in Mauritius Island where we have clients. So the difference is really favourable for investors who wants to invest in French property.