Five steps to take before applying for a mortgage in France

1. Get an agreement in principle 

Before you even start looking at properties, it is worth “doing the leg work” and obtaining an agreement in principle, Mr de Monclin advises.

“This will let you know exactly what your options are and what it is going to cost you in terms of a down payment, in terms of cash flow,” he says. 

“It does increase your chances and your bargaining power because it shows that you’ve done your homework… you would be more credible than someone who is shopping around and hasn’t even looked at the financing aspect.”

2. Property location and condition matters

The property you want to buy, and its location, can affect how much, or even whether, a bank will offer to lend you money. 

“The primary consideration is what and where you are buying – the location and purchase price and whether it requires any renovation,” says Mr de Monclin. 

“Properties in fairly remote or rural areas can be a bit more challenging to finance than those located in so-called prime areas” such as Paris and other big cities, and the Côte D’Azur.

He urges buyers to ensure the property they want to buy is not a “turn-off” for lenders.

3. Is it worth applying for a mortgage before you move to France?

Because non-residents can apply for French mortgages, it is worth considering if you might be in a better financial situation to borrow before you move, while you are still working and bringing in a regular salary. 

This could be an option if you are moving to France to be self-employed, to retire or are planning to look for a job once you arrive – all situations that could hinder your ability to get a mortgage.

“You will qualify for a loan much easier (from abroad) than being new in France with no job and no salary,” says broker Martin Heathcote. 

Buyers considering this would have to make sure they are in a financial situation to take out a mortgage, remembering banks will not lend to anyone whose financial liabilities (rent, mortgage, loans) exceed 35% of their income. 

“The key message is if you are thinking of moving to France and you’ve got a job right now is to get in touch with a broker and talk about it up front and see whether it makes sense to do it now versus when you move to France,” says Mr Heathcote.

4. Do a tax return as soon as you move to France 

If you are planning to get a mortgage after your move to France, you should aim to file a tax return as soon as possible after you arrive. 

“I always say do a tax declaration as soon as you can because at least you are then in the system,” says Mr Heathcote.

5. Take your time

It might not be worth rushing into buying when moving to France, councils broker Martin Heathcote. 

“For some people it makes sense to not rush into it, take your time, and rent for a year,” he says. 

“Have a look around and not just on the mortgage side of things but get to know what you want – what you like and what you don’t like. People are sometimes in a rush to buy and we say look, it’s not the right time.” 

The application process

• Apply for a mortgage in principle (accord de prêt or accord en principe) 

• Find a property and sign a sales agreement (compromise de vente) with the seller once you have agreed a purchase price 

• Send your mortgage application, including all supporting documents, and apply for life insurance 

• The bank will send a mortgage offer – you must wait for a “cooling-off” period of 11 days before you can accept. Some offers expire after 30 days so be aware of the timescale 

• Complete the sale - sign the Acte de Vente - in front of a notary 

Mortgage offers can take 12-14 weeks from application to approval.