Mortgage Loan in France – Commercial Real Estate
Mortgages in France for the Russians – at first glance, the enterprise is rather risky. Before anyone who intends to take a loan in Europe for the purchase of housing, there are a lot of questions: what documents are needed? How long to wait for the decision of a financial organization? Where to go for help?
In this article, we tried to tell as much as possible about the procedure for applying to a French bank for a mortgage loan.
Any foreign citizen who has a stable income can expect to receive a loan from a bank in France. It can be issued both for an individual and for a company.
Credit for the purchase of real estate in this state is issued for five to thirty years. In this case, you must make a deposit in the amount of 40–50% to the bank where you apply for money.
Property in France in the mortgage can be purchased in the event that your monthly payments on the loan will not exceed 33% of all your income. That is why the most important condition for cooperation with a French bank is the presence of a permanent and decent income.
How to get a mortgage in France
To buy an apartment in France in the mortgage , you must perform the following steps:
- Choose a bank, get acquainted with its lending programs.
- If necessary, consult with specialists of the law firm ArendaLazur TM (Cofrance SARL).
- To collect a package of documents.
- Contact the bank with the application and wait for an answer.
Credit Rates in France
There are several types of lending rates in the country.
- The fixed rate is about 3–3.5% per year. It is quite reliable, because from the moment of registration of the loan you know how much you need to pay monthly.
- Mortgage interest in France at a floating rate is 1.3-2%. This rate depends on the values of Euribor – Euro Interbank Offered Rate.
- Mixed interest rate: the point is that the first years, about seven to ten years, you pay the mortgage at a low fixed rate.
List of documents for obtaining a mortgage in France
Get ready for the loan you need the following paper:
- A photocopy of the current passport and the original.
- Certificate of Civil Status.
- Help that you have accommodation in France.
- Employment contract, salary information.
- Bank statement.
- Information about loans in other banks – if any.
- Documents on the payment of taxes.
- Information about the property you are renting is subject to availability.
- The preliminary (!) Contract of sale.
- Bank details.
After you create the file and submit it to the bank for consideration, you need to be patient: the financial institution has the right to consider your application for a mortgage within a month. The bank has the right to request additional documents from you, to ask to insure your life.
If you suddenly change your mind and decide to withdraw the application, you can do it within ten days after contacting a French bank.
Do not forget that all documents on the mortgage must be translated into French, which can be done with the help of certified translators Cofrans SARL.
Remember about such additional expenses as the administrative fee of the financial institution for working with your documents, which is approximately 0.25–0.5% of the loan amount.
Now you know a lot more about how to get a mortgage in France . Feel free to call Cofrance SARL and ask your questions. We will undertake all the work with documents, and all that remains for you is to happily enter your new home. Successful financial transactions!