Financing Options

Financing a Leaseback

An important consideration for French banks in the raising of finance is the applicants "debt ratio". Monthly debt payments including those related to a new mortgage cannot be more than one-third of regular monthly income.

Axis Property Consultants, in their capacity as mortgage brokers, assist investors in securing pre-approved borrowing terms from banks before entering into leaseback agreements.

Obligatory Life Insurance

French banks insist that investors take out a life insurance policy to cover the value of the mortgage; the bank therein must be assigned as the beneficiary of the policy.

Borrowing Conditions

Financing can be obtained for up to 25 years at either variable or fixed interest rates. The interest rate will depend on the buyer's financial profile, the duration of the loan and the initial "down payment".

Banks offer finance to foreign investors of up to a maximum of 85 percent of the value of the property. Axis Property Consultants through its network of international banks, assist investors in the opening of a French bank account from which mortgage payments can be debited.

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