A French mortgage for your real estate investment in France

Apart from good weather, France also benefits from a good climate to ease the process of acquiring a property!

You have decided to acquire a property in France, you may wonder: “What is the best way to make a real estate investment in France? ”



It will be easier to find you a mortgage if you are living in France, but there are many solutions for people living abroad.

In this post, I will outline the main reasons why it is a great moment to get a French mortgage to buy a property in France.

Low interest rates environment

Cash or mortgage? Which is better?

Of course, it depends on your level of wealth and the amount of cash you have at your disposal. But for many, it will not be an option, as it would be difficult to gather several hundred thousand euros at once.

However, even if you have the right amount to buy a property in cash, you need to take into consideration the opportunity to benefit from the low interest rate environment.

France is one of the last defendants of the fixed interest rate! You may obtain a fixed mortgage rate of 1% to 3% over 20 years. Depending on your situation, you could even get a 100% loan to value (LTV).

An opportunity to keep your savings fresh

With the low level of interest rates in France, it is interesting to reduce the deposit at its minimum when buying a villa, an apartment or shares of an SCPI (French equivalent to REIT).  By doing so, you would maintain your savings at a high level and then be able to invest in other financial products that could offer a higher rate of return than the mortgage cost.

In this context, a good mortgage broker should both help you in obtaining the best interest rate and negotiating the lowest amount of cash deposit.

Main advantages of buy-to-let:

If you do not intend to live in France, or even if you are a resident and do not wish to occupy your future property, you will benefit from:

  1. A secured legal framework (though biased towards tenants: you will need professional guidance if you don’t opt in for SCPI)
  2. You will be able to diversify your income with monthly rents paid in Euros
  3. By law, you will be able to review yearly the amount of the rent based on the “Cost of Construction Index”
  4. You can deduct the interest costs from rental revenues according to the French tax law

If you want to invest in the French real estate market and benefit from all the advantages of the French mortgage deals, OptiFi can assist you in every stage of the process.

If you have any questions related to your financial affairs, please contact us by filling in the form below.


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