The Deposit Dilemma: How Much Down Payment Is Really Needed?

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.