LOANS

There are two basic types of bank loans, or prêts, in France:

• Crédit consommation: This is designed to finance the purchase of a particular item. It can be a personal loan or a form of revolving credit for an indefinite period of time. Generally speaking, loans of this type are for personal use only for a term greater than 3 months and cannot exceed €21,500.
• Crédit immobilier: This is a French mortgage, specifically designed for buying property. French banks will not normally lend more than 85% of the price of a property, and 80% is more standard. Ordinarily, Expats shouldn't experience any more difficulty than French citizens in securing this amount of financing, but you must be a resident of France to do so. Under French law, banks are required to check your income level and to conduct ongoing income and expense verifications over the duration of the mortgage. Total loan payments and charges should not exceed one third of your monthly net income. You can normally opt for a mortgage at a fixed rate of interest or a variable rate. For variable rates, your rate will generally be lower if you make a larger down-payment.

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Buying a home in France brochure for more details on: HSBC mortgages, the French purchasing process, the role of the notary, rates and taxation.