If you’re an expat looking to get a mortgage in France for a property, the current investment climate is marked by considerable turbulence. The ongoing conflict in Ukraine, supply chain instabilities, and the lingering impacts of COVID-19 have all taken their toll on the market. Inflationary pressures have given rise to new trends that are putting a lot of pressure on the liquidity available to international property buyers. In this blog post, we explore the challenges facing international property buyers and offer valuable insights on how to navigate the complex landscape of international mortgages in France.
Challenges Facing International Property Buyers when Getting a Mortgage in France
Mortgages for international clients in the French market are less developed than you might expect. Access to high-quality service can be very hard to come by due to the following reasons:
- The international mortgage industry in France is a small niche with few stakeholders, indicating a significant barrier to entry for new players in the market.
- To claim expertise in international mortgages, it is necessary to have a broad network of partnerships and lenders. The speaker’s brokerage provider, Carte Financement, has almost 50 international lenders, indicating that having a wide range of partnerships is crucial to success in this industry.
- Many brokers claim to do international business, but without a robust network of partnerships, it is difficult to offer a comprehensive service. This suggests that the key to success in the international mortgage industry is not just claiming to offer international mortgages but having a strong network of partnerships to back up that claim.
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Partnering with a Consultant for Successful Property Financing
Success in obtaining an international mortgage in France requires partnering with a consultant who can provide valuable guidance through the complex lending system. French brokers are multi-bank, providing a significant advantage in finding the best lending solution for each client’s unique situation. The diversity of projects in the international mortgage industry keeps professionals engaged and challenged, with no two applications being the same. Therefore, those who thrive in this industry must have a flexible and adaptable approach to meet the diverse needs of their clients.
The Impact of French Lending Regulations
French lending regulations have caused a slowdown in the mortgage market, specifically due to the legal usury cap rate, which is applied to each mortgage. This rate is calculated by taking the average of the three last months of mortgage release, which means that the rates currently applied may not accurately reflect the current market conditions. These variables can cause significant fluctuations in the APR, making it difficult for borrowers to secure mortgages even if they have substantial assets. The French government has updated the usury cap rate every month instead of every quarter or six months, allowing the market to be more fluid and adaptable to changing conditions.
Thierry's Top Tips for Successful Property Financing
In short, presenting strong assets and cultivating a partnership mindset with banks are crucial strategies for successful property financing. Showing assets, such as properties, incomes, and savings, to banks can greatly improve the chances of obtaining property financing. Treating banks as partners rather than simply tools for obtaining financing can lead to long-lasting relationships and more profitable and mutually beneficial relationships between banks and clients.
Meet Thierry Jean
Thierry Jean, a leading mortgage specialist at Carte Financement, is renowned for providing comprehensive mortgage solutions to international clients looking to invest in the French real estate market. Based in Bordeaux, Thierry has extensive experience working on a diverse range of mortgage applications, from small to large-scale projects. Whether you are a first-time buyer, looking to secure a second home, or expanding your real estate portfolio, Thierry can provide expert advice and guidance on the best mortgage.
To learn more about how Thierry and Carte Financement can assist you with your mortgage needs, please feel free to contact him at tjean@cartefinancement.com or call him at +33 7 61 50 30 13. With his assistance, you can secure the financing you need to make your dream of owning a property in France a reality.
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