Expat Forum For People Moving Overseas And Living Abroad banner

1 - 12 of 12 Posts

·
Registered
Joined
·
7 Posts
Discussion Starter #1
Hello! We are US citizens and currently renting a home in the Brittany area of France. We are retired with a good, secure pension. We'd like to buy a home, but do not have enough funds for a cash purchase. Any recommendations and/or advice regarding finding a home mortgage lender? Thanks, in advance, for any help!
 

·
Registered
Joined
·
207 Posts
Hello! We are US citizens and currently renting a home in the Brittany area of France. We are retired with a good, secure pension. We'd like to buy a home, but do not have enough funds for a cash purchase. Any recommendations and/or advice regarding finding a home mortgage lender? Thanks, in advance, for any help!

Although this was some time ago (2006), we used a mortgage broker to help us find a lender. Coincidentally, the best deal was then from HSBC, with which we already banked in the US. The broker, CAPFI, appears to have offices throughout France. http://www.cafpi.fr/


Sent from my iPad using Tapatalk
 

·
Registered
Joined
·
207 Posts
Also, you mention that you are retired and receiving a pension. One thing to keep in mind is that many, if not most, French banks have an upper age limit on borrowers, usually 75. I believe this is tied to the ability to qualify for the mandatory life insurance benefiting the lender that is required in connection with all French mortgages, unlike “credit insurance“ in the US required only if you are only marginally qualified for the loan. For us, this resulted in a 22-year mortgage term so that the loan is paid off in the year I turn 75.


Sent from my iPad using Tapatalk
 

·
Registered
Joined
·
4,890 Posts
Try your local bank. If your own bank is not interested then try further down the street. Local banque directeurs have quite a lot of independence re loans etc. From experience.,I've bought and sold several properties in France, there are 2 types of directeur.

The first does not want the difficulties of understanding non French documents and non French banks, pensions etc, nor take the risk of "fly by night" foreigners. Others welcome the business, recognising that ex pats know other expats who need loans etc, and who want to improve their English.

A word of warning, it is very easy to get an "illustration" of a loan It does not give ANY implication of actually granting a loan. My dog could ask for an illustration and get one, but is unlikely be granted a loan.

You are more likely to be successful if you already have an account with your local bank. Again from experience you are more likely to be successful if you have some sort of rapport with the directeur. French retail banking is often based on person to person understandings,

DejW
 

·
Administrator
Joined
·
48,479 Posts
The usual approach is to talk to your French bank first of all. It would be much better if whatever pensions you are receiving are deposited directly (or via transfer) each month into your French bank account - as that is the sort of thing the banks base their credit decisions on.

You should expect a shorter loan period (i.e. 15 years max - with the caveat about insurance that dpdapper mentions) and whatever period you are looking at, you will only be allowed to borrow an amount that makes your payments at most about 30% of your monthly income.
 

·
Registered
Joined
·
18,312 Posts
I would just point out that it has become very difficult to secure a mortgage in France, unless you have significant assets here. Even for French citizens who have all their assets, be the real property and or financial, in France. Banks and other financial institutions are increasingly covering their backs. Also associated interests rates may well be higher and terms shorter than would have been the case 12 or even 6 months ago.
 

·
Registered
Joined
·
2,279 Posts
You can also ask the real estate who ends up selling you the house you want to buy. It is in their interest (no pun intended) for the sale to complete.
 

·
Registered
Joined
·
120 Posts
I would just point out that it has become very difficult to secure a mortgage in France, unless you have significant assets here. Even for French citizens who have all their assets, be the real property and or financial, in France. Banks and other financial institutions are increasingly covering their backs. Also associated interests rates may well be higher and terms shorter than would have been the case 12 or even 6 months ago.

Coming from an American perspective where 20 year loans are currently 2.9 % there is a chance they could still be offered a loan at below that, considering ( I believe), that French loans now hover around 1.3%.
 

·
Registered
Joined
·
4,890 Posts
I honestly believe, young, dear Berky that you are LYING.

You DID intend this to be a pun, you naughty boy. I suppose that you are trying to borrow my techniques? Capital, but try harder next time, it may yield better results.

Morally upright and with a straight face...DejW

You can also ask the real estate who ends up selling you the house you want to buy. It is in their interest (no pun intended) for the sale to complete.
 

·
Registered
Joined
·
18,312 Posts
Coming from an American perspective where 20 year loans are currently 2.9 % there is a chance they could still be offered a loan at below that, considering ( I believe), that French loans now hover around 1.3%.
The actual interest rate you eventually are offered (and an offer is subject to things such as the amount of deposit, where the home is, its condition, whether sales in the area are strong, whether prices in the area are falling, stagnant, or increasing, and many other factors). If you have a good sized deposit that effectively covers the risk etc. and are not considered a particular liability on the basis of age, the term is not long, etc., you could get a better rate. If a bank or financial institution tells you would get a loan of x Euros over x years at x interest rate without it being based on a specific home, this is unlikely to be a firm agreement to give you a mortgage but rather an estimation. There is alway the possibility of using a courtier and if you cannot or do not wish to find a courtier yourself, many agents will put you in touch with one - as berkinet says it is in their interest to do so.
 

·
Registered
Joined
·
2,279 Posts
...You DID intend this to be a pun, you naughty boy. I suppose that you are trying to borrow my techniques? Capital,...
No, interest.

People who pun, should be punished.
 
  • Like
Reactions: DejW

·
Registered
Joined
·
7 Posts
I would just point out that it has become very difficult to secure a mortgage in France, unless you have significant assets here. Even for French citizens who have all their assets, be the real property and or financial, in France. Banks and other financial institutions are increasingly covering their backs. Also associated interests rates may well be higher and terms shorter than would have been the case 12 or even 6 months ago.
This is our experience - the mortgage in principle was a doddle but the rules have tightened up so much since Covid that we're not sure we'll even get a mortgage. They want to see no other borrowings which is a challenge! also struggling to find banks that will lend as little as we're looking for - about 90,000 euros at 80%.
 
1 - 12 of 12 Posts
Top