Asking for a loan to buy an apartment in France

Property & Home
1

Hi,

I’m currently planning to buy an apartment in Paris. Its selling price is at 315k and the frais de notaire is around 23.6k making the total of 338.6k to purchase the apartment. I currently have 300k of my apport personnel and would like to ask a loan from the bank for the rest to be able to afford this. Do you think it’s possible or should I lower my apport personnel and loan more? Thank you.

2

That’s an excellent situation to be in! Yes, it is absolutely possible to secure a loan for the remaining balance. In fact, your large personal contribution (apport personnel) puts you in a very strong position with French banks.

Here is a breakdown of your current situation and the best approach.

Your Current Financial Situation

Item Amount (€) Percentage Notes
Apartment Price 315,000 93.0% of Total Cost This is the value of the property.
Frais de Notaire 23,600 7.0% of Total Cost These are the acquisition fees, typically 7-8% for existing properties in France.
Total Acquisition Cost 338,600 100% The full amount you need to finance.
Your Apport Personnel 300,000 88.6% of Total Cost This is your down payment.
Loan Needed 38,600 11.4% of Total Cost The remaining balance.

Is It Possible to Get a Loan for €38,600?

Yes, it is highly likely that a bank will approve a loan for €38,600.

Your €300,000 apport personnel is equivalent to 88.6% of the total cost (€338,600). This is far above the typical minimum deposit requirements in France:

  • Minimum Apport: Banks usually require a minimum contribution of 10% of the total acquisition cost (to cover the frais de notaire and other fees). In your case, that would be around €33,860.
  • Ideal Apport: An ideal contribution is often considered to be 20% or more.
  • Your Contribution: At 88.6%, your contribution is exceptional.

Key Advantages of Your Position:

  • Low Loan-to-Value (LTV): The required loan of €38,600 represents only about 12.25% of the property price (€315,000). Banks love a low LTV because it drastically reduces their risk.
  • Excellent Borrower Profile: This level of savings demonstrates strong financial stability and a proven ability to save, which makes you a highly attractive borrower.
  • Negotiating Power: You can leverage your high contribution to negotiate a better interest rate and potentially more favourable loan conditions.

Should You Lower Your Apport Personnel and Loan More?

It’s highly recommended to keep your contribution high as planned (€300,000) and only loan the minimum amount (€38,600).

While banks will generally lend up to 80-85% of the property value, borrowing more is usually not in your best financial interest in this scenario.

Reasons to Keep the Loan Low:

  1. Lower Total Cost: By borrowing less, you will pay significantly less interest over the life of the loan. This is the single biggest advantage.
  2. Shorter Term: You can likely secure a very short loan term (e.g., 5 to 7 years) for a small amount like €38,600, which will further reduce the total interest paid and keep your monthly payments manageable.
  3. Future Flexibility: Keeping a larger portion of your remaining savings (the amount over the €300,000 you plan to put down) in a separate reserve is wise for:
  • Contingency Fund: Covering any unexpected costs during the purchase, renovations, or emergencies after moving in.
  • Investment: Keeping some liquid funds for potential future investments.

In summary, your initial plan is excellent. Proceed with asking the bank for a mortgage of €38,600 (plus any small ancillary bank fees like frais de dossier that may apply, which are usually minor). This is an easy loan for them to approve, and it is the most cost-effective solution for you.

(Not my own work. Trust it at your own risk :wink: )

1 Like
3

Do you have earnings that you can prove to support the loan?

4

I have a current job with a CDI contract with a monthly salary of about more than 2000 euros. Would that work?

5

Of course. In fact if my own experiences are anything to go by, the bank may well suggest you keep some savings in reserve and borrow more than you’d originally planned.

6

thank you so much for the reply! how much did u reserve and borrow, if you could give a rough estimate? :slight_smile:

7

I agree with @Helenochka , if the bank is happy to loan more I’d keep back 15,000€ or something anyway as there is always unexpected costs with a new property.

8

I don’t know much about French mortgages but is the bank likely to ask about the origin of the 300k?

1 Like
10

If you’re already talking to the bank, could you not ask them the question you asked us?

3 Likes
11

In general French banks are very cautious. It will help if you have been a customer for a while. And sometimes they prefer to loan larger amounts than smaller ones, so son’t be surprised if they say their minimum loan is €100,000. I don’t understand why but this has happened to non-French people I know.