Author: Blue Sky

Yes — you absolutely can make overpayments or early repayments on a French mortgage. From our experience at Bluesky Finance, this flexibility is a valuable tool for internationally mobile high‑net‑worth clients acquiring property in France. Below we explain how it works, what the legal framework provides and what you should keep in mind.

Overpayments & early repayments: fully permitted

Under French law, a borrower retains the right to repay all or part of their mortgage ahead of schedule. Whether you wish to increase your monthly instalments or make a lump sum payment, the contract and statutory framework allow you to do so. The relevant consumer‑credit provisions provide that even if the loan agreement includes prohibitions on partial repayment, the borrower may still terminate the contract by repaying the full outstanding sum, or repay part of it, subject to the lender’s conditions.

Therefore, making a larger payment than your standard monthly instalment — or even paying off part of the loan ahead of schedule — is entirely permissible.

The limits on costs for early repayment

While overpayments are permitted, you should understand the cost‑structure potential:

• The lender may apply a compensation fee (early repayment charge) if you repay early, but this is strictly capped by law. The maximum is the lesser of:

  1. Equivalent to six months’ interest on the repaid amount (calculated at the loan’s average rate), or

  2. 3% of the capital outstanding before the repayment.
     These provisions apply particularly for fixed‑rate loans.

• In many variable‑rate mortgage contracts, the early repayment charge may be zero or minimal. If your loan is variable or capped, you may have more freedom to overpay without cost.

• Regarding increasing monthly instalments (rather than one‑off lump sums): many French lenders accept this, provided you remain within the contract’s terms and the bank agrees the amendment. Some contracts explicitly allow a “modulation” of repayments, meaning you can raise your monthly amount by a defined percentage (for example +30%‑50%) without being treated as a partial repayment event triggering full legal early repayment rules.

Thus, from the Bluesky Finance standpoint, over‑paying monthly instalments or making occasional lump‑sum payments is financially and legally feasible — and the cost penalty is effectively capped.

Strategic considerations for overpayment

As a buyer of French real‑estate financing via a mortgage, the following strategic points should be examined:

• Check your contract early: When you sign the mortgage offer, review the “clause de remboursement anticipé” (early repayment clause) and “modulation des échéances” (instalment adjustment) to understand permitted overpayments and any costs.

• Monthly instalment increases: If you want to elevate your monthly repayment (e.g., moving from €2,000 to €3,000 per month), you may be able to do so without triggering the entire early‑repayment regime — many lenders allow a flexible increase of 30‑50% in monthly payments while keeping the amortisation schedule intact.

• Lump‑sum payments: If you have capital available (for example from another liquidation or asset sale) and plan to make a large one‑off overpayment (e.g., €100,000 on a €500,000 loan), ensure you request the calculation of the compensation fee and check whether your loan is variable or fixed. Doing so can help optimise the timing and cost.

• Currency exposure: If you earn in non‑euros and your loan repayments are in euros, you may still want to accelerate repayment when your currency is strong, locking in lower cost in your home currency.

• Tax & wealth‑planning: Early repayment may affect your leverage, tax positioning and wealth‑tax exposure (e.g., your net debt on the property reduces your taxable base). Discuss with your advisor how overpayment aligns with your broader portfolio strategy.

• Lender communication: Notify the bank in writing of your intention to overpay or adjust the payment schedule. For lump‑sum payments, you typically apply in writing and receive a calculation indicating remaining capital, interest saved, and any indemnity fee.

• Long‑term benefit: Overpaying reduces interest cost over the term and accelerates equity accumulation, giving you more flexibility (e.g., refinancing, selling, repositioning). For HNW clients with global portfolios, this aligns well with wealth‑efficient structuring.

Bluesky Finance’s verdict

In summary: yes, you can make overpayments on a French mortgage. Whether you elevate monthly instalments or make a lump‑sum payment, the French legal framework supports this and the costs are capped meaningfully (six months’ interest or 3% of outstanding capital). For borrowers focusing on strategic wealth planning, currency timing, or accelerated equity build‑up, this flexibility is a strong advantage.

At Bluesky, we encourage you to incorporate overpayment strategy into your mortgage plan at the outset. We can assist you in reviewing your mortgage contract, projecting savings from overpayment scenarios, and aligning your repayments with your broader portfolio and currency exposure.

Yes, it is possible to release equity from a property in France, but the pathway is not as straightforward or widely available as it might be in other jurisdictions. Unlike the UK or U.S., where equity release is a well-established financial product, in France the concept exists within a narrower regulatory and institutional framework. At Bluesky, we regularly advise high-net-worth clients on how to navigate these complexities and leverage their French assets efficiently.

Equity Release in France: It Does Exist

While not common, equity release options are available in the French market. These typically take the form of a secured loan or refinancing arrangement rather than the standard “equity release” products familiar in other countries. French lenders may allow you to borrow against your property’s value, particularly when the asset is in a prime location and the borrower’s financial profile is strong.

The most common approach is a second mortgage or secured refinance, where the property is used as collateral. This enables the owner to extract capital from the property while retaining ownership. It can be done either after the initial purchase is complete or as part of a restructuring of an existing loan.

Why Equity Release is Not Widely Offered

Despite its availability, equity release is not a mainstream proposition in France. There are several reasons for this:

• Regulatory caution: French financial institutions are governed by conservative lending rules. They are generally reluctant to offer loans that are not directly tied to a purchase or that do not include regular amortisation.

• Limited risk appetite: Lenders view secured loans that are not associated with a property transaction as higher risk, particularly for non-residents or older borrowers without local fiscal ties.

• Debt servicing concerns: Banks must ensure that the borrower can reliably service the debt. Even with substantial equity, income remains a key factor — and many equity release applicants struggle to meet these requirements under French underwriting standards.

Who Can Successfully Release Equity?

While access is limited, certain client profiles are far more likely to be successful. In our experience, the strongest candidates include:

• Fiscal residents in France: Being tax resident simplifies due diligence, enhances transparency around income, and opens the door to more flexible lending structures. Lenders are more willing to entertain equity release applications when they are dealing with a resident borrower.

• Owners of high-value properties (€1 million and above): Properties in this category offer better security for lenders and are generally more marketable. This makes lenders more open to releasing funds secured on the asset.

• Clients with assets under management: For non-resident borrowers in particular, some private banks will agree to an equity release if assets are placed under management with them. This mitigates the lender’s risk and often leads to better loan terms.

Key Requirements and Considerations

If you are considering releasing equity from your French property, be prepared to meet the following conditions:

• A formal property valuation: The lender will require a professional valuation to confirm the current market value of the asset.

• Evidence of income: Regardless of the available equity, you will need to demonstrate a sustainable income stream to meet the monthly repayments.

• Conservative loan-to-value ratios: French lenders will typically not lend above 50–60% of the property’s current value for equity release purposes, particularly in non-resident scenarios.

• Clear purpose for the funds: The intended use of the released equity – whether for investment, portfolio diversification, family gifting, or liquidity — must be disclosed and may influence lender appetite.

• Strong documentation: You will need to provide detailed financial documents, including tax returns, income statements, and proof of ownership. For non-residents, translated and certified documentation may be required.

Bluesky Finance’s Verdict

Yes, you can release equity from a French property,  but success is conditional. The French market does not routinely offer equity release products, especially not in the flexible, client-driven form known elsewhere. However, for high-value properties and well-prepared clients, it remains a viable route to unlock capital.

At Bluesky, we specialise in structuring equity release transactions for clients who meet the right criteria, typically owners of properties worth €1 million or more, those who are fiscally resident in France, or those willing to work with private banks under an assets-under-management model. Our role is to assess your position, guide you through the lender landscape, and execute the transaction discreetly and efficiently.

If you’re considering equity release, we recommend a full profile review to establish feasibility – we can support you in designing the most appropriate strategy tailored to your asset, income and residency situation.

Yes — you absolutely can still arrange a mortgage in France even if your initial sales contract states that you will pay “cash”. At Bluesky Finance, we have structured transactions for internationally‑mobile buyers who chose to enter the contract without a loan contingency, and then elected to borrow either before completion or even up to a year after the purchase. Here’s how it works and what you must pay careful attention to.

The buyer’s choice of purchase method

When you sign a Compromis de Vente or Promesse de Vente, you are free to indicate that the purchase will be made in cash (i.e., without making the sale conditional on obtaining financing). This is entirely your decision and reflects your strategy, rather than a requirement of the French market. Choosing “cash” simply means you are opting not to include a mortgage‑condition (“clause suspensive d’obtention de prêt”) in the contract.

What you must understand:

• If your contract does not include a mortgage clause, you do not have the automatic protection of a financing condition. That means if you cannot secure a loan, the deposit you paid (commonly 5‑10 % of the purchase price) is at risk — you may forfeit it or be obligated to complete the purchase regardless.

• If you include a mortgage clause, the contract typically allows you to withdraw (without penalty) if you cannot obtain the financing within a specified period. Without that clause, you accept the risk.

Timing and the possibility of borrowing after purchase

Even if you contract for a cash purchase, you can still arrange a mortgage subsequently. In practice:

• Many French lenders allow you to apply for a mortgage after the Acte de Vente (completion) or after the property purchase has been settled.

• In fact, it is possible to secure the mortgage up to 12 months after the date of purchase, as long as the bank’s underwriting criteria are satisfied and the property remains unchanged and unencumbered by other debt.

• The benefit of this approach is flexibility: you may complete swiftly in “cash” from your own funds or foreign currency liquidation, and later choose to leverage the property with a euro‑mortgage under attractive terms.

Key considerations and how Bluesky Finance advises you

To proceed smoothly when borrowing after a “cash” purchase, keep these points front of mind:

• Ensure the property is mortgage‑eligible: The property must meet the lender’s criteria (location, use, condition, valuations) just as if you had applied beforehand.

• Check for encumbrances: A mortgage applied later must not conflict with another loan or second‑charge secured on the property unless arranged and approved by the lender.

• Timing of application: Submitting your mortgage application early — ideally before any significant changes to the asset or your financial profile — helps secure competitive terms.

• Currency of debt vs asset: If you borrow in euros and your income/assets are denominated in another currency, you still need to satisfy lender affordability tests and demonstrate capacity to service repayments in euros.

• Tax and registration consequences: Leveraging the property via a mortgage may alter certain tax or wealth‑tax positions; your adviser should check implications for your cross‑border structure.

• Deposit risk awareness: Remember, having no loan clause means your deposit is not protected. Proceed only if you are comfortable with the risk and have a clear plan for financing the acquisition.

Bluesky Finance’s verdict

Choosing to use your own funds for the purchase (i.e., “cash”) and subsequently arranging a mortgage is entirely viable — and for many HNW and internationally mobile buyers it is a strategic move. You may complete the acquisition swiftly without waiting for a loan approval, while preserving the option to borrow afterward in euros under favourable conditions.

However, it is essential to recognise that by foregoing a mortgage‑contingency clause you assume a higher contractual risk: failing to secure financing later will not automatically release you from the purchase contract or refund your deposit. With the right planning, documentation and lender‑alignment, this structure can serve your wider portfolio and liquidity goals.

If you like, we can review sample lender policies on post‑purchase borrowing and prepare a scenario based on your profile (purchase amount, asset location, timing) to show how this might work for you.

Yes — you can absolutely secure a mortgage in France even if you are relocating and not yet living there full‑time. At Blue Sky, we frequently advise internationally mobile clients who are transitioning to France and wish to finance a property. The key is that you demonstrate a sustainable source of income and give the lender assurance of your financial reliability.

Why relocation does not prevent mortgage eligibility

If you are planning to move to France — whether to live permanently, semi‑permanently, or as part of an international relocation — French lenders will consider your case as long as you satisfy core underwriting standards. Crucially:

• You must show you have recurring income and a stable financial base (this may be earned in euros via a French employer, or from a foreign entity or investment income).

• You must be able to service repayments in euros (since the loan will be euro‑denominated).

• Documentation of your income, assets and liabilities must be clear and credible.
  So relocation is not a barrier — it’s the income profile and financial track record that matter.

Income qualification – what relocation applicants should prepare

When applying for a French mortgage under a relocation scenario, you will typically need:

• Evidence of employment by a French employer or written offer/contract if moving to France. Or, if you will earn from a foreign entity, documented contracts or service agreements showing continuity of income in foreign currency (which the lender will convert and assess).

• Recent bank statements, tax returns or equivalent to demonstrate global income and that it is sustained and predictable.

• If your income is in a non‑euro currency, lenders will evaluate the currency risk and your capacity to meet euro repayments.

• A French bank account may be required for repayments and to facilitate local relationship.
  At Bluesky Finance, we advise relocation clients to build their dossier early: secure the employment contract or income source, open the French account, and compile any foreign income contracts well in advance.

Why this works for relocating buyers

• Euro‑denominated debt matched with a euro‑asset: Taking a mortgage in euros while purchasing French property aligns currency exposure and property currency — a strategic advantage.

• Income from abroad is acceptable: Whether your income is earned in euros or a foreign currency via a foreign entity, a French lender will consider it — provided you can demonstrate it’s reliable and ongoing.

• Relocation‑friendly lending: French banks understand that internationally mobile borrowers may be in the process of relocating and still view the case favorably if the fundamentals are in place.

The Bluesky Finance Insight

For high‑net‑worth clients relocating to France, the mortgage is very much feasible. At Bluesky Finance we emphasise that the lender’s assessment focuses on your income sustainability, currency exposure, and financial profile, rather than your current address. By structuring your relocation with a clear income base (either from a French employer or a credible foreign contract), and preparing your income documentation early, you position yourself strongly for a French mortgage.

Having the right specialist adviser and broker in France is also key, as they will ensure your submission aligns with the lender’s expectations and support you through the cross‑border aspects of the move.

If you are considering relocation and buying property in France, we would recommend a structured review of your income source, currency exposure and timing — we at Bluesky Finance can help you design that plan and present to lenders with confidence.

Yes — you absolutely can secure a mortgage in France even if you’re not salaried. At Blue Sky we routinely guide entrepreneurs, company directors and self‑employed individuals through the process, and we know the roadmap works. The key lies in presenting a well‑structured dossier showing sustainable income, reliable historic accounts, and strong overall financial standing.

Why non‑salaried status isn’t disqualifying

If you operate your own business, hold a directorship, or draw income from dividends or freelance work, French lenders will lend to you — so long as the profile is transparent, well documented and meets their underwriting criteria. What lenders seek is not whether you’re salaried, but that you have recurring income, financial stability and the capacity to service the debt.

What you’ll need to qualify

From our experience working with high‑net‑worth clients, the following are standard prerequisites for self‑employed / director applicants:

• Three years’ accounts: Lenders expect to see audited (or at least formally prepared) accounts for the last three financial years, showing consistent performance and profit.

• Tax returns: You must provide your personal tax returns (and sometimes company returns) for the same 2‑3‑year period, linking your income source with your declared profits.

• Sustainable income evidence: The bank will assess that the level of income can reliably continue — this may come from business profits, dividends, consultancy income or equivalent.

• Affordability assessment: Even as a non‑salaried borrower, your total debt commitments (including the proposed mortgage) should not exceed the lender’s debt‐service threshold, typically around a third of your declared income.

• Strong ancillary profile: Stability of your business sector, asset base, savings or investments all strengthen your file. A non‑salaried applicant with a robust business history is often viewed as less risky than one with variable income streams or unproven business activity.

How to position your case for best terms

Here are some strategic elements to focus on:

• Ensure your business has been operating for at least three years and shows consistent profitability — newer businesses may be treated as higher risk.

• Keep your company structure and income streams straightforward and well documented (i.e., avoid overly complex ownership structures or undeclared income).

• Maintain clear differentiation between business funds and personal funds — personal bank statements, investment performance and clear income flows matter.

• For international clients: if your income or business is outside France, make sure translation of documents, certification and recognised accounting standards are in place — lenders will review foreign‑income streams carefully.

• Consider larger down‑payments or more conservative loan‑to‑value (LTV) ratios to improve terms — as a self‑employed applicant you may gain a more favourable margin if you reduce the lender’s risk.

• Engage specialist mortgage brokers with experience in non‑resident & self‑employed French mortgage cases: they can pre‑screen your profile, identify which banks are comfortable with your structure and optimise the submission.

Bluesky Finance’s verdict

If you’re self‑employed or a company director planning to purchase property in France and arrange a mortgage — you are very much eligible. The absence of salaried employment is not a barrier. What matters is the clarity, longevity and reliability of your income; the integrity of your accounts; and your ability to satisfy French lenders’ underwriting standards.

At Bluesky Finance we believe the strongest applications for non‑salaried borrowers include three years of audited accounts, verified tax returns, a clean debt‑to‑income profile, and a business model that provides confidence in future earnings. Presenting your case this way enables you to secure euro‑denominated borrowing on competitive terms, aligned with your international portfolio and ambitions in France.

If you are ready, we can at your convenience review your business accounts and tax history and position you for the lenders most receptive to self‑employed and director mortgage clients.

At Bluesky Finance, we frequently support globally mobile clients in retirement who ask: “Can I secure a mortgage in France even though I am over 60 and dependent on pension income?” The firm answer: yes—absolutely. Retirement or age beyond 60 need not be a barrier to arranging a mortgage in France, but you must structure it to meet lender criteria that are tailored to your stage of life.

Why it is possible

French lenders will lend to borrowers who are retired, provided that they can demonstrate a recurring, reliable source of income (even if no longer employed). Acceptable income for underwriting may include:

• Pension income (state pension, private pensions or annuities)

• Rental income from property holdings

• Income generated from retirement investment accounts (dividends, interest, systematic drawdowns)

As long as you can evidence this income chronologically and show that it supports the loan repayments, your retirement status does not automatically exclude you from mortgage eligibility.

Key age‑and‑term criteria you must meet

From our experience advising high‑net‑worth international buyers, the critical age‑related criteria French lenders apply are:

• The loan must be fully amortised by a specified maximum age—often around 75‑80 years at the end of the term.

• Lenders typically calculate the allowable mortgage term so that the borrower’s age today plus the mortgage termdoes not exceed the lender’s age ceiling (for example: if you are 63 now, and the bank’s limit is 80, the maximum term would be ~17 years).

• The debt‑service capability must fit within your income and liability profile—including your retired status and any other repayments

How to structure the mortgage successfully in retirement

Here are the key levers you should focus on to ensure a favourable outcome:

• Term shortening: Be prepared for a shorter term than a younger borrower might take. If the age ceiling is 80, and you are already 65, you might only be able to secure a term of ~15 years rather than 20+ years.

• Fully amortising repayments: Lenders expect the loan to be repaid (principal + interest) by the end of the term—interest‑only structures are much less common for older borrowers unless they have significant alternative collateral.

• Stable income stream documentation: Provide proof of pension payments, rental history, investment income statements, or other recurring income for the past few years and projected forward.

• Affordability check: The bank will stress‑test your repayments relative to your overall income and outgoings, accounting for potential age‑related cost increases (health, maintenance, currency risk if income is non‑euro).

• Insurance or security: The bank may require life‑insurance cover (assurance emprunteur) or additional security, especially due to older age. Ensure the cost of insurance is factored into your cashflow plan.

The Bluesky Verdict

For clients aged over 60 and retired, securing a French mortgage is very much viable—provided the deal is structured appropriately. The scariest constraint for many is not the age itself, but the term length: lenders expect the debt to be cleared by an upper‑age threshold. That means your planning must reflect realistic term limits, solid recurring income, and clean affordability.

In our view:

• Age alone does not disqualify you.

• You should expect a shorter term than younger borrowers.

• Capital + interest repayment (amortising) is the preferred format.

• Clear, recurring income (pensions, rentals, etc) is the essential qualification.

If you are retired and planning a property purchase in France, now is a strategic moment. Interest rates remain attractive, and the leverage of borrowing in euros against a euro‑asset still offers meaningful benefits. Bluesky Finance stands ready to assist you in navigating the lender landscape, preparing the right documentation and structuring the offer so that your age‑status works for you – not against you.

From our experience advising high‑net‑worth international clients, the simple answer is: holding a European passport does not guarantee better terms when securing a mortgage in France. What truly drives mortgage terms are where you are fiscally resident, the property location, the duration of the loan, and the size (and structure) of the borrowing. Below we explain why.

Why passport nationality is not the primary factor

While some potential borrowers believe that an EU passport might unlock preferential mortgage conditions, in practice French lenders and private banks focus far more on risk factors tied to your residency and financial profile:

• Fiscal residence is the lead consideration. Lenders want to know in which country you are tax‑resident and therefore subject to regulatory and enforcement regimes they understand.

• Property location matters. Whether the property is in Paris, the French Riviera or a quieter département, lenders assess its resale value and liquidity.

• Loan duration and size are key. A long‑term fixed euro loan of several hundred thousand euros carries different risk than a shorter or smaller loan.

• Your overall financial profile (income/asset base, debt service ratio, currency exposures) remains central.

Therefore, while a European passport may simplify verification or reduce administrative complexity, it does not by itself result in materially better interest rates, higher loan‑to‑value or looser underwriting for smart international borrowers.

What actually determines mortgage terms

At Bluesky Finance we observe the following criteria as decisive when negotiating or structuring a French mortgage:

1. Fiscal residence status
   If you are tax resident in France, the UK, the US, Hong-Kong, Singapor, Switzerland, or the Netherlands your file is often more straightforward to underwrite. If you’re resident outside the EU, banks may impose higher margins or larger down payments—not because of your passport, but because of the relative “remote” risk profile.

2. Location of the property
   Prime‑location, high‑liquidity markets (e.g., central Paris, Côte d’Azur, the French Alps) are easier collateral for banks. These properties tend to carry a lower risk premium, and thus more competitive terms. The property’s marketability matters more than the client’s passport.

3. Loan size and term
   Larger amounts and longer durations increase lender risk exposure. The longer the term, or the higher the amount relative to the borrower’s income/assets, the more likely stricter conditions will apply. Conversely, more modest loans, shorter terms or higher client contribution may unlock better terms.

4. Borrower’s financial strength & currency exposure
   Regardless of nationality, your income stability, asset liquidity and ability to service repayments are fundamental. If you earn outside euros and borrow in euros, the borrower’s currency risk and debt‑service ratio become core risk factors—for which banks will factor in extra margin or impose stricter terms.

When a European passport may help (but marginally)

In rare cases, holding an EU passport may offer minor practical benefits — such as more familiar regulatory frameworks, past banking relationships in Europe or ease of document verification. But this should be seen as a logistical convenience, not a decisive factor in securing materially better terms. The financial and underwriting metrics still dominate the outcome.

What to focus on if you want the best terms

For clients aiming to optimise their borrowing terms, here are the key levers to emphasise:

• Use a property in a sought‑after location with strong resale potential—this helps banks assess collateral risk favourably.

• Keep the loan‑to‑value (LTV) conservative (e.g., < 70‑75 %) and the loan term reasonable; these reduce lender risk and improve pricing.

• Demonstrate solid global income and assets, regardless of currency—focus on affordability, risk buffer and stability.

• Align your borrowing currency with your asset (in France that means euros) and plan for currency risk and repayment capacity in your home currency.

• Work with a French mortgage specialist who understands how lenders view non‑resident or cross‑border cases, to present your file optimally.

Final thought — Bluesky Finance’s verdict

While holding a European passport might ease administrative hurdles, it is not a primary driver of better mortgage terms in France. A lender’s decision rests on your fiscal residence, the property location, the size/term of the loan and your financial profile. For internationally mobile, high‑net‑worth clients, focusing on these substantive factors is far more meaningful than passport status in isolation.

Should you wish, we can help you evaluate specific lenders and market terms in the French mortgage space for your profile, so you can understand what you might realistically expect in today’s environment.

At Bluesky, we are often asked by internationally mobile clients, particularly U.S.-based individuals,  whether it’s possible to arrange a French mortgage without earning income or holding assets in euros. The answer is yes. In fact, not only is it possible, but it is increasingly common among globally positioned buyers acquiring property in France for investment, vacation use, or future repatriation.

Below, we outline the key parameters that apply, the strategic advantages of euro-denominated borrowing, and the practicalities Non resident clients should understand before proceeding.

French Mortgages Are Available Without Euro Income

French banks are open to non-resident borrowers, including U.S. citizens and residents who earn in dollars or other non-euro currencies. There is no requirement to earn income in euros to qualify for a mortgage in France. However, French lenders do conduct a rigorous affordability assessment to ensure that foreign income is sufficiently stable and that the borrower has adequate capacity to service the loan in euros.

Lenders will assess your global income, liabilities, and often expect you to maintain a debt-to-income ratio below approximately one-third of gross monthly income. Supporting documentation — typically including Tax Teturns, proof of salary or dividends, and bank statements — will be required, and the underwriting process can be more detailed than borrowers are accustomed to in their home jurisdictions.

Loan-to-Value: Up to 85% is Achievable

For non-resident clients, borrowing up to 85% of the property’s purchase price is feasible. This upper range is generally reserved for borrowers with strong financial profiles and applies to both classic residential mortgage products. US residents can borrow up to 75% of the purchase price.

In some cases, particularly where the borrower demonstrates significant disposable income or a robust asset base, retail banks can offer up to 80-85% loan-to-value (LTV) without requiring assets under management. The remaining 15-25% of the purchase price — along with notary fees and related acquisition costs — must be funded from the borrower’s own resources.

There is no obligation to deposit financial assets with the lending bank, although certain private banking arrangements may offer more favourable terms in exchange for such a commitment. Many of our clients, however, secure high-LTV loans without tying up liquidity.

Strategic Advantages of Borrowing in Euros

Opting for a euro-denominated mortgage — even as a non-euro earner — offers a suite of financial benefits that are often underestimated.

1. Interest Rate Arbitrage

French mortgage rates remain comparatively attractive in the global context. Even amid fluctuations in the European Central Bank’s policy stance, long-term fixed mortgage rates in France are generally lower than equivalent products in markets such as the U.S. or UK. This can translate into meaningful cost savings over the life of the loan.

2. Long-Term Fixed Rate Stability

French lenders are well known for offering fixed-rate terms of 15, 20 or even 25 years. This provides repayment certainty and shields borrowers from future interest rate volatility — an increasingly valuable feature in today’s macroeconomic climate.

3. Currency Alignment

By borrowing in euros against a euro-denominated asset, you reduce currency mismatch risk. This alignment means the loan liability and the underlying asset move in parallel. In effect, your exposure to adverse exchange rate movements is limited to monthly repayments, not the full capital value.

4. Tax Efficiency

Financing a French property through debt can be more tax-efficient in some cases, particularly for clients with exposure to French wealth tax (Impôt sur la Fortune Immobilière). Mortgage liabilities reduce the net taxable value of the property, which can offer significant long-term advantages for portfolio planning and inheritance structuring.

5. Preserving Liquidity and Investment Flexibility

Using leverage to acquire French property enables clients to retain capital in other investments. This is especially pertinent in an environment where global equities, private markets, or yield-generating assets may offer superior returns relative to the cost of debt.

What to Expect in Practice

While the financing environment is favourable, the process demands preparation. Documentation must be comprehensive and precise. Lenders will expect clarity on income streams, personal liabilities, and the source of funds for the deposit. The timeline to secure a mortgage approval typically ranges from four to eight weeks, depending on the complexity of the case.

Clients should also account for potential currency fluctuations when planning repayments, though mechanisms such as forward contracts or multi-currency banking facilities can help mitigate this risk.

The Bluesky Finance Perspective

For globally mobile clients and expatriates, financing French real estate with a euro mortgage — even without euro income — is not only viable but strategically advantageous. Our team specialises in structuring such solutions, ensuring access to competitive terms while preserving financial flexibility and mitigating cross-border complexity.

If you are considering acquiring property in France, we recommend an early-stage conversation with our specialists to assess feasibility and begin positioning your profile for optimal mortgage terms.

All the documents non-residents need for a successful French mortgage application

Applying for a mortgage in France as a non-resident can feel like navigating a maze. French banks are meticulous, and their documentation requirements go beyond what many buyers are used to in their home country. Having a complete file prepared in advance is the best way to avoid delays — and to demonstrate that you’re a strong, serious borrower.

Below is a comprehensive checklist of what French lenders typically expect.

1) Personal Identification

• Valid passport(s) for all applicants.

• Proof of current address (utility bill or official correspondence, less than three months old).

• Marriage certificate, divorce decree, or civil partnership documentation (if applicable).

2) Income Verification

For Salaried Employees

• Employment contract(s).

• Last three months’ payslips.

• Most recent annual income statement (such as a P60 in the UK or a W-2 in the US).

• Last two to three years of tax returns.

For Self-Employed or Business Owners

• Last three years of personal tax returns.

• Last three years of company accounts (P&L and Balance Sheets)

• Recent management accounts or interim figures if the latest year’s accounts are not finalised.

3) Banking & Credit History

• Recent bank statements (last three months) for all current accounts.

• Statements for savings and investment accounts.

• Mortgage or loan statements for any existing debt.

• A credit report from your home country (e.g., Experian, Equifax, TransUnion).

4) Deposit & Funds Evidence

• Proof of available funds for the down payment (apport personnel).

• Documentation showing the origin of funds — whether from savings, sale of an asset, inheritance, or transfer.

• Evidence of funds to cover notary and registration fees (usually 7–8% on a resale, 2–3% on new builds).

5) Property Documentation

• Signed purchase agreement (compromis de vente or promesse de vente)

• Diagnostic Survey Pack

• Draft deed or reservation contract (for new builds).

• Property details including floor plans, price breakdown, and location.

6) Insurance Requirements

French banks usually require life and disability insurance linked to the loan. For this, you’ll need:

• Completed medical questionnaire.

• Recent medical reports (if requested).

• Identification details for beneficiaries.

7) Additional Notes for Non-Residents

• Consistency is critical: Lenders often want documents translated into French by a certified translator.

• Currency stability matters: If your income is not in euros, banks may stress test your repayment capacity against exchange rate shifts.

• Timing: Many lenders require that all documents be dated within the last three months, particularly payslips and bank statements.

Final Thoughts

The French mortgage process may feel paperwork-heavy, but it’s designed to give both lender and borrower security. By preparing these documents in advance, you’ll not only shorten the approval timeline but also position yourself to negotiate stronger terms.

How BlueSky France Finance Can Help

We know exactly what French banks look for in a non-resident file. Our advisors can pre-check your documentation, highlight gaps before you apply, and structure your file in the format lenders prefer. This saves you time, avoids costly delays, and helps you secure the right mortgage on the right terms.

EU vs. non-EU buyers, and how collateral changes the equation

Buying in France comes with two “deposits” that are often confused. One is the booking deposit at the pre-contract(typically 5–10% held in escrow by the notaire or agent), and the other is your down payment (apport personnel)—the cash you contribute alongside (or instead of) a mortgage. They serve different purposes and follow different rules.

1) The Two Deposits Explained

• Booking deposit at signing (compromis/promesse): Usually 5–10% of the agreed purchase price, held safely in escrow. This is credited toward your purchase at completion. It’s refundable if you withdraw during the statutory cooling-off period or if financing is declined under a suspensive clause.

• Down payment to the bank (apport personnel): Your equity contribution. This determines the loan-to-value ratio (LTV) and is the piece lenders focus on when assessing your file.

A practical point: your down payment is separate from acquisition costs such as notary fees and registration taxes (typically 7–8% on a resale property, 2–3% on a new build). Many banks expect non-resident buyers to cover these costs entirely from cash.

2) How Much Down Payment Do Lenders Expect?

EU or French Residents

• Generally benefit from higher LTVs and lower equity requirements.

• Strong profiles may access 70–85% LTV, and in some cases up to 90% or more with the right guarantees.

Non-EU / Non-Residents (e.g. US, Australia, Singapor, Hong Kong, UAE)

• Lenders are more conservative, usually offering 50–60% LTV.

• This translates to a 30–50% down payment, with variation depending on nationality, income currency, and property type.

• For American buyers, compliance rules narrow the pool of willing banks, which can increase documentation requirements and equity expectations.

3) What Drives the Bank’s Decision?

• Residency status and currency of income – euro-based income is usually favoured.

• Debt-to-income ratio – French lenders apply strict affordability caps.

• Property type and valuation – banks lend against their own valuation, not just the agreed price.

• Quality of documentation – complete and transparent files often secure higher leverage.

4) Collateral: Beyond the Property Itself

French banks always require a primary guarantee on the loan, usually through a mortgage registration or a third-party guarantee. But additional collateral can improve terms:

• Pledge of assets (nantissement): Life insurance policies, cash accounts, or securities portfolios can be pledged instead of, or in addition to, property. This can allow a higher LTV or reduce the required down payment.

• Life/disability insurance: While not legally mandatory, in practice it is almost always required to secure a loan approval, particularly for non-residents.

5) Typical Buyer Scenarios

• EU resident with euro income: 15–30% down payment plus fees. Strong cases may access 90–95% LTV or more.

• UK and Swiss resident: 15–30% down payment plus fees.
• Non-EU, non-resident: 25–40% down payment plus fees is typical. Some lenders will go up to 70–80% LTV for robust profiles, but many cap lower.

• Private banking route: High-net-worth individuals can sometimes negotiate higher leverage or interest-only structures when pledging assets under management.

6) Five Ways to Reduce Your Cash Outlay

1. Separate acquisition fees from your down payment—most banks expect you to pay fees in cash.

2. Use collateral creatively—pledging life insurance or securities can offset a lower apport.

3. Choose banks carefully—policies vary widely by nationality and income currency.

4. Strengthen affordability by reducing other debts before applying.

5. Ensure the property valuation supports your loan size—banks rely on their own appraisers.

7) Quick Glossary

• Apport personnel – your down payment or equity.

• Caution / Garantie – a third-party guarantee instead of a mortgage registration.

• Hypothèque / PPD – registered real estate security (mortgage).

• Nantissement – pledge of an asset (life insurance, cash, securities) as collateral.

The Bottom Line

• EU and UK residents usually need less equity thanks to higher LTVs.

• Non-EU buyers should plan for 30–40% down, plus fees, though collateral can help reduce this.

• The right combination of equity, guarantees, and pledged assets can significantly improve approval chances and loan conditions.

How BlueSky Finance Can Help

We work with clients across Europe, the US, and beyond to model realistic down payment requirements based on nationality, income profile, and target property. By exploring both traditional mortgage options and collateral-based solutions, we can help structure financing that balances equity, risk, and long-term goals.