in-depth knowledge of the French property market
FAQ > Mortgage Financing
Can I secure a mortgage in France?
Do I need to have a French bank account?
How long does it take to get approval for a loan?
What happens if I cannot secure the loan under the conditions stipulated in the Compromis de Vente?
How long does the process take between the initial Preliminary Act and the signing of the final deeds?
Is there a period of reflection for the buyer once the ‘Compromis de Vente’ has being signed?
Can I secure a mortgage in France?
It is recommended to take out a French mortgage in order to finance a property purchase. French mortgages allow buyers to offset interest on the loan against any rental income received.
Do I need to have a French bank account?
If a French mortgage is required the borrower is obliged under law to open a French bank account. Most banks will open an account on behalf of the client when processing the loan.
How long does it take to get approval for a loan?
The loan approval process takes approximately 6 weeks once all required documents are lodged with the bank.
What happens if I cannot secure the loan under the conditions stipulated in the Compromis de Vente?
It is possible to add a conditional clause ('clause suspensive') to the Preliminary Sales Agreement which outlines the minimum terms of a loan that the client is willing to accept in order to purchase the property. Ordinarily the client will have 45 days from the signing of the Preliminary Sales Agreement to secure financing. If he/she is unable to do so the agreement is automatically cancelled. The client is thereafter excused from purchasing the property and the 10% deposit will be refunded.
How long does the process take between the initial Preliminary Act and the signing of the final deeds?
The process takes approximately three months from the signing of the Preliminary Sales Agreement to delivery of the property keys.
Is there a period of reflection for the buyer once the ‘Compromis de Vente’ has being signed?
The law provides for a seven-day 'cooling off' period in the case of private individuals buying residential property. During this period the buyer can withdraw from the acquisition of a residential property without incurring any financial penalty.
