Having a holiday home in a sunny location or a place that is rented out to collect an additional monthly income… There are many reasons that can make you want to buy a property abroad. But what about the home loan. Is it possible to subscribe in France and if not, what are the other options?
The financing of a property abroad:
The first solution is to mobilize equity; that is, having enough money on hand to be able to dispense with a credit application. But few people can afford it.
The second solution is to apply for a home loan in a banking establishment. You have two choices: contact a French bank or a bank in the country where you wish to acquire your property.
Here again, it is necessary to distinguish the countries bordering on France, where you can find interlocutors quick to help you unlock the funds. There will nevertheless be a guarantee request, as does, for example, to ask a mortgage, on a property located on French territory. But if the good is located in a more distant country, how to do it?
Buying a property far from French territory, the solutions:
It is often the case when you want to acquire property in another country to open a bank account. This will greatly facilitate the process of applying for a home loan if the country is favorable to this type of transaction, which may not be the case. Not being a resident can make this type of purchase more complex.
Please note, if the country you have chosen is outside the USD zone. You would then be dependent on the exchange rate. This can have a significant impact on the amount to be reimbursed, particularly over time.
Can a broker help me carry out the procedures for a property purchase abroad:
A broker can be the ideal person to facilitate this type of loan. He can, firstly, thanks to his professional network, find a bank in France or in a country of the USD zone which will agree to follow the buyer in this project.
Before that, of course, he will have to check the solvency of his client and the guarantees he can provide to reassure banking establishments.
In this context, he will study his income but also fixed costs, in order to calculate his debt ratio. Finally, he must check, according to the property to be acquired, whether the debt ratio does not exceed 33%. All this information can reassure a bank, but the mortgage on the principal residence can also be requested, in addition, to maximize the chances of having a positive answer.
Finally, depending on the country, he can popularize the terms, so that the buyer understands the ins and outs of the content of the loan: repayment period, the rate charged, amount of monthly payments.