Get a Home Loan to Buy Abroad

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:

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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:

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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:

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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.

Are You Looking For A Low Interest Rate Loan?

If you are looking for a loan with a low interest rate, you should always seek a loan comparison in advance. The loan calculator will tell you the cheapest provider for your desired combination of loan amount and term, free of charge and without any obligation.

Loan with a low interest rate has an important advantage

Loan with a low interest rate has an important advantage

In the database of a reputable credit calculator, countless credit institutions with different loans are recorded, and there are also separate calculators for special loans (for example, a car loan), which can then be used to obtain loans on special terms. The use of a reputable credit calculator is always completely free of charge for the prospective borrower, since they are financed through a commission from the lender. A loan with a low interest rate has an important advantage for the borrower, which is why the loan calculator should actually be used.

Because the lower the interest rate, the lower the total cost of the loan. Therefore, a borrower can save a lot of money on financing through the cheap or low interest rates, without the loan amount or other factors deteriorating. Of course, the savings on a loan with a low interest rate are particularly high if the loan amount is also very high.

This circumstance simply results from the fact that the interest rate is always given as a percentage value, which is why the costs incurred for interest increase evenly the higher the total loan amount. The key to borrowing should therefore, at least from the perspective of the borrower, always be the use of a low-interest loan.

Attractive conditions for borrowers

Attractive conditions for borrowers

The easiest way to take out a loan with a low interest rate is to look for the relevant bank beforehand. In addition, your creditworthiness should be at least average, otherwise banks will have to compensate for a poorer credit rating with a later high return. This would only make the loan more expensive for you, which is why a low interest rate is most likely to be achieved by people with average or high incomes.

The interest rate is ultimately given annually, i.e. per year, and is expressed over the entire term of the loan. Accordingly, the percentage remains the same, but the interest will decrease if the term is chosen to be as short as possible. A short term is only possible if your monthly income also offers enough scope for paying off the monthly installments, because the lower the term, the higher the monthly installments, of course, since the entire amount will then be paid off over a shorter period .

In order to submit the loan application for the low interest rate loan as quickly as possible and get it approved, all documents should also be handed over to the bank completely and truthfully. This is the only way to process the loan application as quickly as possible, which of course also shortens the time until the loan amount is paid out.