Mortgage criteria
Rules are Rules
Understanding the bank criteria for French mortgages can be daunting. At first glance the bureaucracy can seem bewildering, and the amount of paperwork required for submission can be huge. However, our experience enables us to cut right through the red-tape and speed up the underwriting process from start to finish.
points to consider
Eligibility
Life Assurance is still a major requirement of mortgage lending here in France. Past medical conditions may hinder the acceptance of a new French life policy, leading to a declined mortgage application. ICE Finance offers unique solutions.
Age
Your age at the start of the mortgage should be 25 - 60 years. old The maximum duration for a mortgage is typically 25 years. In general, most French banks wish for the mortgage to be finished by the eldest client’s 75th or 80th birthday.
Income
Types of income taken by the underwriters include salary, dividends, self-employed income, pensions and rental income from properties already owned. All income declared must be shown on national tax documents - always.
% Ratio
Borrowers should not use more than 1/3 of their monthly taxable income, to cover all existing monthly loan repayments and the new € mortgage. Total commitments must one-third or less of income. To help you, let ICE Finance work this calculation out.
Assets
As mentioned elsewhere on this website, certain banks look at net assets before income, particularly Private Banks and for Interest Only mortgages. Clients who may be ‘income poor asset rich’ appreciate this more favourable underwriting approach.
Nationality
Many French banks have different lists as to who they will lend to and how much - it is based on your country of tax residency, and also your nationality. Typically 50% - 85% loans are available for overseas international clients. Enquire within.
