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How to make a mortgage in France?

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  1. #1

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    How to make a mortgage in France?

    I don't work there, so I can't make a mortgage with a French bank. I can't even if I open a company and try to do a mortgage through this company.

    Does anybody have any idea how I can make a mortgage for the purchase of a house in France?

    Thank you


  2. #2

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    I did last year and it was terrible ! Bank don't fucking brother to reply ...
    I contact expat broker specialised but most start to ask so many documentation that it was impossible.

    In the end i manage to do it with LCL in France as i had a bank account with them for over 30 years... But even that was terrible, as to postpone the deal date twice as they were so slow to respond lucky the seller was nice.

    If you really want to go with it contact Marjorie from https://www.credit-expat.fr/ she is in Hong Kong and will probably be you best bet to get a mortgage.

    shri, CharSiuNow and john_1122 like this.

  3. #3

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    @Beuze do you have income denominated in euro in France ?
    I thought the directives 2018 provide you can't get a mortgage unless you do. I went through this exercise in 2017 and approached LCL (long term customer same as you although my account has been largely empty for the last 25 years) and they turned me down, best they would offer is a useless mortgage fully collateralised by money-market funds managed by them. HSBC France offered the same "deal".
    Did you get your mortgage solely on the thrust of your relationship with LCL or any special term you had to agree to? Thanks

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  4. #4

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    Thank you!!


  5. #5

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    @jrkob I don't have any income in France.

    The only thing i agree was not to move the life insurance i have with them for 2 years. The value of the life insurance was roughly a year of mortgage.

    The place i bought is use as an Airbnb and my relationship manager in LCL fill the paper saying it will be a full monthly rental property maybe that help.

    " La banque postal" also approve my loan on the condition i open a premium account with them. I then proceed to open the account but this account come with credit card which i was not allow as i am a non-resident. I told them i didn't want the credit card anyway i just wanted the saving account ... But computer say no if you want the premium account you need the credit card ... After two weeks of insane chat with every time someone new. I gave up.

    If you think Hong Kong bank are terrible try french ones ...

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  6. #6

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    Quote Originally Posted by Beuze
    my relationship manager in LCL fill the paper saying it will be a full monthly rental property maybe that help.
    Gulp.
    Ok, I guess that's what they treat as the euro-denominated income needed.

    Interesting that non-residents can't get a credit card, thanks for the info (I have one of the more common Visa debit card).

    What LTV did you get?

  7. #7

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    Quote Originally Posted by jrkob
    Gulp.
    What LTV did you get?
    70% including tax and notary cost. With a 15 years loan.
    jrkob likes this.

  8. #8

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    Oct 2012
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    I have a French passport, and wanted to see if I could get a mortgage in France. I was in Paris in 2018 and I went to BNP Paribas (with appointment at one of the branches catering to international clients, I think the one in Opéra). I explained my situation (expat in HK, no French or EUR income), and they said it was no problem to get a mortgage and gave me a (long) list of paperwork they needed. I don't remember all the items on the list (I can try to find the papers if someone is interested), but all of it was manageable.

    So I'm a bit surprised by these experiences as it differs from my own. There are also quite a few "property finding" companies for expats that will arrange mortgages for French expats as part of the package, and I spoke to them too (investissement-locatif, myexpat) - they all said mortgage was easy, just that the rate is a bit higher than foe locals. (Note this isn't a recommendation, I didn't use them, but can confirm they have a real physical presence with quite a big team!)

    In the end I didn't buy anything, so I can't comment on whether the mortgage would actually get approved when it came down to it, but I walked away thinking it would be fine if I wanted to proceed.

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  9. #9

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    Interesting presentation here from a former French banker:

    https://www.youtube.com/watch?v=GPO7Qz1rtRk


  10. #10

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    I've seen this video, and watched quite a few of his videos actually. (I'm going to derail the thread a bit now.) In fact, it seems there are a ton of people doing what he does - see vlogs like Pierre Ollier, Olivier Seban, Esprit Riche, and many many others, all inspired by Robert Kiyosaki. They are all supposedly "millionnaires" owning a ton of properties, but out of the goodness of their hearts, they are selling "training courses" so you can become a millionaire too. The whole premise seems suspicious, but having said that, a lot of the advice they give in their free videos does seem reasonable. They all sell more or less the same formula: maximize your yield and minimize your taxes by finding old apartments in bad shape, negotiate hard, renovate, and rent them out as "LMNP" (french term for a long term furnished rental), or sometimes short term via AirBnB and the like. Claim back your renovation costs from taxes, deduct depreciation, and you are able to rent your property tax-free for great many years. Together with other yield-enhancing tips (split large apartments into smaller units, etc) they claim that you can achieve rental yields in excess of 10% (usually in small-to-medium towns), often claiming outrageous yields of 15-20% even, which means the investment is entirely self-financing: you put down a minimal amount, like 10%, or even nothing, and then the rent more than covers the mortgage. Rinse and repeat until you are rich. It's hard to separate fact from fiction in all this though - the tips themselves are generally good, but can you really "create" these 10%+ yielding properties in a location with reasonable prospects, good tenants that pay rent, etc? I don't know the answer to this (but I'm curious), though it seems some people do succeed... maybe.


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