Living abroad and you’d like to invest in real estate in France? You’ll need to convince a bank to go along with your project. With interest rates as low as they are today, how can anyone pass up on the opportunity? The only problem is that it’s sometimes harder for an expat to get a mortgage. Harder, but not impossible! With My Expat’s help, discover how taking out a loan as an expat.
Think About Your Personal Situation
Before even looking at your income or how much deposit you can put down, a bank will want details of your professional situation abroad. The best position to be in to get a mortgage easily? Having a French employment contract and being seconded abroad. If that’s the case for you, a bank will go along with you almost without even looking. If you have a local employment contract, it all depends on which company you’re working for. Working for a big group or multinational corporation? No problem. A bank will see that as being guarantee enough. If you work for a lesser known SME on the other hand, you’ll have to find other arguments to win your bank over. And if you’re on a temporary employment contract or in your trial period, you should wait until you’ve signed an indefinite term employment contract before even going to see your bank!
If you went to university, you’ll be able to negotiate better interest rates. And, of course, having a good relationship with your bank and being a client of the same bank for other financial services will also increase your chances.
Weigh Up Your Financial Situation
To assess your borrowing capacity, a bank will look closely at the state of your finances. Your salary is, of course, important, but so are your outgoings. The lower your ratio of outgoings:income is, the easier you will find it to obtain a higher sum. If, on the other hand, the ratio exceeds 35%, you will find it very difficult to obtain a mortgage, even a small one. Your family circumstances can also come into play, especially the number of children you have, and your partner’s income level.
If you’re not paying rent or alimony and not repaying any loans, your ratio is probably very low and the chances are you’ll find it easy to borrow a generous amount of money.
Your bank has rejected your application ? Put your back-up plan into action!
If banks feel that, like lots of expats, your personal or financial situation doesn’t measure up and just doesn’t provide enough guarantees, you can always find other ways of financing your project.
My Expat, who’s speciality is helping expats invest in real estate in France, can put you into contact with brokers. This often applies to expats living in the U.S. who tend to be written off by French banks because of FATCA (the Foreign Account Tax Compliance Act). But, they’re able to find financing and make secure and profitable rental investments through My Expat, thanks to our networks of brokers.