Looking to buy a home in France? Need to renovate your existing property? Crédit Agricole offers a range of competitive fixed and variable rate mortgages to turn your French property dreams into reality.
Anyone can apply for a Crédit Agricole mortgage to buy, renovate or build a home. All we ask is that you make a deposit towards the purchase price and that your total monthly mortgage and credit commitments, including the new mortgage, don’t exceed one third of your net monthly income. (1)
Whether you prefer the reliability of a fixed rate or the money-saving potential of a variable rate that tracks changes in the financial markets, Crédit Agricole has a mortgage plan to meet your needs.
With our flexible fixed rate mortgages, you can increase your monthly repayments by 10 to 20% each year. With a variable rate mortgage, you can increase your repayments by up to 30% each year! And we’ve not forgotten the rainy days – with our mortgages, you can also reduce your monthly payments if you need to.(2)
Good to know: our flexible fixed and variable rate mortgages allow you to modify your repayment schedule if your circumstances change. On each anniversary of your loan agreement, you can reduce or increase your monthly repayments, or switch from a variable to a fixed rate.
Buying a property in France: a guideThe process for obtaining a mortgage in France is probably different from the process used in your home country. Read our quick guide to the different stages:
You can apply for a French mortgage with Crédit Agricole if:
- you are buying (including buy-to-let), renovating or building a property,
- you have a minimum deposit of 20% of the purchase price,
- - your total monthly mortgage and credit commitments (including the new mortgage) do not exceed one third of your net monthly income.
A fixed rate mortgage is the best choice if you’re looking for peace of mind. The interest rate on your loan does not vary and your monthly payments are agreed in advance.
With a flexible fixed rate mortgage from Crédit Agricole, you can increase your monthly payments by 10 to 20% each year. You can also reduce your monthly payments if you need to tighten your purse strings.(1)
Crédit Agricole proposes variable rate mortgages capped at 1%, 2% and 3%. With a variable rate capped mortgage, the interest rate is fixed for the first year and will never rise by more than 1%, 2% or 3%, depending on the type of capped rate mortgage you choose. The rate is reviewed and adjusted in line with the EURIBOR base rate (within the limits of the cap) on each anniversary:
- if the EURIBOR rate goes up, your mortgage payments will increase, although they will never pass the cap,
- if the EURIBOR rate goes down, your mortgage payments will decrease.
You can increase your monthly repayments by up to 30% each year, or reduce your monthly payments if you need to.1 You can also choose to convert to a fixed rate mortgage on each anniversary of the loan.
The interest rate for a fixed rate mortgage is agreed at the time you take out your mortgage. Whatever happens to the economy – good or bad – your interest rate will stay the same. It’s the best option for people who like to know exactly where they stand.
Variable rate mortgages are fixed for the first year. Thereafter, they fluctuate in line with the EURIBOR base rate. If interest rates drop, you’ll enjoy the benefits in the form of lower mortgage payments or a shorter loan term. If they rise, you can choose to pay a little more each month or extend the life of your mortgage. Variable rates are best for people who enjoy taking a calculated risk (fortunately, our capped rates mean it’s never too risky!)
If you repay a fixed rate mortgage or a variable rate mortgage capped at 1% or 2% before the end of the fixed term, you will be charged an early repayment fee equal to 3% of the outstanding balance of the loan or 6 months’ interest. In France, this fee is known as an “IRA” (indeminités de remboursement anticipé).
There is no penalty for the early repayment of variable rate mortgages capped at 3%.
All Crédit Agricole mortgages allow you to make partial repayments during the life of the loan. Our flexible mortgages also allows you to increase or reduce1 your monthly payments every year, without paying any fees.
PEL and CEL: the winning combination for property projects PEL and CEL are the perfect partners if you’re saving to buy or renovate a new home. As well as tax-free savings, they give preferential rates on your mortgage! > Learn more about the PEL > Learn more about the CEL
All Crédit Agricole mortgages are secured on the property.
Two types of security are available. There are different fees and redemption charges associated with each option, so make sure you discuss your choice with your bank adviser.
- The PPD (Privilège de Prêteur de Deniers) can be used to buy an old or new property that involves a transfer of ownership. It gives the mortgage lender priority over other creditors with regard to the property.
- The contractual mortgage (hypothèque conventionnelle) is used if there is no transfer of ownership, for example if you are refinancing an existing loan or requesting an equity release, or if you are purchasing a property under construction.
Fees for registering the property purchase and the PPD or hypothèque are paid to your notary. These fees are calculated on the basis of the value of the property and the amount borrowed and are financed as part of the mortgage. Notary’s fees are legally established by the Chamber of Notaries and are usually non-negotiable.
Good to know: your notary will estimate the cost of registering your property and your PPD or hypothèque – the exact cost is only calculated once the sale has gone through. Notaries slightly over-estimate these fees to make sure they’ll have enough money to pay. If there’s any money left over, they’ll send it back to you!
You need two kinds of insurance when you purchase a home in France:
- building and contents insurance that covers the property,
- life insurance (including total and irreversible loss of independence) that covers the borrower(s) for the total amount of the loan.
Building and contents insurance is obligatory: the policy must be in place before you sign the deed of purchase. Your notary will ask for a copy of the policy when you sign the deed of purchase.
You are not obliged to take out a life insurance policy to cover the amount value of your mortgage, but most French banks do not offer loans without this insurance. In most cases, the mortgage protection policy and the mortgage application are treated simultaneously.
If you take out a mortgage with us, you’ll need:
- mortgage protection from Crédit Agricole,
- building insurance from Crédit Agricole.
Mortgage protection covers:
- the remaining capital due in case of death for non-residents,
- the remaining capital due in case of death or disability for residents.