Buying property in France
When searching for property in France, you can
- either purchase directly from the seller by looking through advertisements on your own,
- or you can go through a real estate agency.
Real estate agencies can provide you catalogues of properties to consult. They usually have a thorough knowledge of their sector and can advise you on your purchase. They also negociate the selling prices and plan the various properties’ visits for you. Agencies receive a commission on the selling price of the house or apartment.
When you find a property that interests you, you make an offer to the owner. If accepted, you sign a sales agreement specifying the property's price and date of availability. You may be asked to make a deposit of 5-10 % of the selling price. At this point, the property is reserved on your name while the necessary administrative, banking and notarial procedures are completed (about 3 months). Should you change your mind about purchasing the property without meeting one of the associated legal clauses (7-day retraction period, loan refused by the bank, property non-compliant with urban development rules, etc.), the owner gets to keep the security deposit.
The deed is signed before a notary public, who makes sure that the necessary diagnostic verifications have been performed (asbestos, termites, natural risks, etc.).
Financing your purchase
If you do not have the cash funds to purchase the property or prefer to hold on to your savings, you may ask your bank for a property loan. We can offer you numerous financing solutions, combining, according to your project and situation, standard loans, at fixed, adjustable or combined rate, so-called regulated loans - Prêt à Taux Zéro Plus (Zero Rate Plus Loan), Prêt à l’Accession Sociale (Social Home Acquisition Loan), Prêt Épargne Logement (Housing Saving Loan), etc.
The amount of the loan will depend on the overall cost of the project, the borrower's income and the duration of the loan.
In France, the borrowers' expenses (including the monthly loan repayment) may not exceed one-third of their income. The maximum duration of a property loan is usually 25 years and can vary depending on the borrowers' age. The interest rate is either fixed (monthly payment and duration set in advance) or variable (the monthly payment may increase or decrease within pre-defined limits). Borrowers must also have death and invalidity insurance, and the bank requires the loan to be backed by a guarantor or a mortgage. Your Branch Adviser will take you through a personal simulation and guide you through the financing process.
Buying and reselling a property: the buy/resell solution
This enables you to acquire a new property before you have sold the old one. The bridging loan involves a partial advance based on the sale of your current property. This loan may be provided in addition to another loan for the financing of your new acquisition.
Planning a rental investment ?
This can be a beneficial option to diversify your assets while also benefiting from an attractive tax framework. Your Relationship Manager will be able to guide you through the numerous existing possibilities under, for example, the Scellier and furnished rental laws.