It is possible for Dutch people who want to buy a house in France to take out a loan there. Borrowing money in France is sometimes done in a different way. For example, most people there do not take out a mortgage, but a so-called caution. It is also possible to take out a mortgage with Dutch banks when you buy a house there.
Borrow in France
In France, just like in the Netherlands, it is possible to take out a loan to buy a house. However, the Dutch word mortgage has a different meaning in Dutch than the French word of the same name. In the Netherlands it is almost synonymous with taking out a loan to purchase a house. In France they prefer to talk about ‘pret immobilier’. This purely concerns the conclusion of a loan and it does not necessarily have to be the case as a mortgage for the house. On the contrary. In France, hardly any loans are taken out for a house. This usually concerns a normal loan and private individuals also take out insurance in case they cannot repay the loan. The borrower puts a certain amount into this and he or she will largely get this amount back when the loan has been repaid. If this does not happen, the bank will be reimbursed from this fund. This guarantee fund is called ‘caution’.
Take out a mortgage in France
If someone does not qualify for a caution, they can always take out a so-called mortgage. This must always be recorded with the notary. The costs are approximately the same as the caution, but the difference is that you will not get these costs back. Furthermore, you are less flexible when it comes to renting or selling your house, for example. There are strict regulations around this in France. It is possible for foreigners to borrow money from a French bank, but always ask for a caution first and not for a mortgage.
If you do take out a mortgage, it is important that you pay part of the purchase price yourself. Then you should think of approximately twenty percent of the purchase price. Banks often ask this, even though there are exceptions. They do this to ensure that the borrower pays off his debt. They think there is a better chance of this if the borrower also has money in the house. That house obviously serves as collateral. Via a site such as www.meilleurstaux.com it is possible to get an overview of all loans that French banks provide.
Take out a loan in the Netherlands
If you speak French poorly, there are also options to borrow from a Dutch bank. Rabobank and ABN Amro, among others, have made it possible for a number of years to take out a mortgage for homes abroad. The commission costs are probably slightly higher than when you buy a house in the Netherlands. Moreover, the conditions are stricter compared to a mortgage for a house in the Netherlands.