Buying a Home in France

A tailor-made mortgage loan for HSBC Premier non-residents customers with:
• Dedicated bilingual team
• Practical assistance in every step of your project
• Remote process : fill and sign all the documents from abroad, including the account opening form.
• Tailor-made quotation (fixed or variable rate)
• Request on line
• Contact within 48hrs with a Buying a home in France specialist

Apply now!

Download our Buying a home in France brochure for more details on : HSBC services,  non-resident mortgages, interest rates, the French purchasing process, the role of the “notaire”, rates and taxation.
Download the brochure.

• A bilingual team is dedicated to HSBC Premier non-residents customers who want to buy a property in France. They can be contacted by phone and e-mail.
• Our specialists will assist you in getting started, during your buying process and at every key stage of your project.
• All “Buying a home in France” documents are in English or translated into English to allow for a better understanding (account opening + mortgage, application form, life cover subscription, mortgage contract).
• Our team has contact with English-speaking professionals (notaires, solicitors etc..): they can put you in touch with them should you require them to do so.
• No need to come to France to fill in or to sign the forms: all the documents regarding your mortgage and your HSBC France account can be completed  from abroad.
• Your HSBC France account can be used to pay the direct debits for taxes, electricity, telephone or gas bills.

• Mortgage main features
• Eligibility criteria
• Interest rates : your tailor-made quotation

Buying a home in France mortgage

• Capital + interest repayment EURO mortgage.
• Loan to valuation ratio: up to 70% of the purchase price or our valuation whichever is lower (excluding legal fees).
• Minimum Amount: EURO 50,000.
• Maximum term: 25 years.
• Interest rate: fixed, variable or capped rate.
• Early repayment can be done at any time. A penalty equivalent to 3% will be charged for fixed rate mortgage.
• Mortgage insurance :
     - Security: first legal charge (mortgage).
     - Life cover is mandatory and provided by HSBC Assurances. This insurance pays off all or part of your remaining mortgage amount in the event of death or permanent incapacitation. Insurance cost is monthly calculated on the outstanding capital.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.   Currency Risk : It is worth considering how to protect yourself against currency risks. The foreign exchange market can be unstable and anyone looking to undertake a large transaction should be aware of the risks. CHANGES IN THE EXCHANGE RATE MAY INCREASE THE STERLING EQUIVALENT OF YOUR DEBT.

Eligibility main criteria

• Applicants must be aged over 18 and the loan have to be fully repaid before you reach 75 years.
• Affordability - up to 33% (fixed monthly commitments including the requested mortgage loan repayments compared to the net income per month) or a sufficient disposable income.
• Yearly income of more than EURO 100,000 NET (after tax).
• Regular and stable income :
     - Salary applicants: we normally require you to have worked for the same company for at least 12 months.
     - Self-employed: you must have run your business for at least 3 years.

Interest rates : your tailor-made quotation

Your relationship Manager will be happy to assist you in making the best choice depending on your personal situation.

• Fixed rate (maximum term 20 years): repay your mortgage with monthly fixed payments. When the mortgage is signed a constant rate is calculated on the basis of current bond prices.
The rate, the term and the amount of monthly payments are fixed.
Early repayment can be done at any time. A penalty equivalent to 3% will be charged for fixed rate mortgage. No penalty with the variable rate.

• Variable rate (maximum term 25 years): your monthly payments are in line with current interest rates.
The rate is linked to the Euribor 12 months or 3 months and revised yearly or quarterly on the date the mortgage was completed. If the rate decreases your monthly payments and the cost of your mortgage will be reduced. If the rate increases, you can switch to a fixed rate at any moment without any fees.

• Mix of a fixed and variable rate: balance the risk.
Your mortgage is divided into 2 parts : a fixed rate for part of the amount ( for security) and a variable rate for the rest (for flexibility).

• Capped variable rate (maximum term 25 years): a guaranteed ceiling rate of +2 %.
A good compromise between a variable and a fixed rate : you benefit from a decrease in rates and have security in the case of a rates increase. Please note that you cannot switch to a fixed rate during the mortgage.

1. Fill in the request form. It only takes 10 min.
A specialist will contact you to discuss your project within 48 hrs.  Apply now.

2. Find the right property in the right area!

3. Sign the preliminary contract (preliminary sales agreement), once you have found the right property.

4. Your HSBC France Relationship Manager will send all the documents translated in English :
• account opening,
• mortgage application forms,
• life cover subscription,
• mortgage contract.

Once completed, send it to your Relationship Manager with all the requested documents. You will be issued with a mortgage offer (subject to HSBC France approval on your mortgage and insurance applications).

5. Once you have received the mortgage offer, you must wait at least 10 working days (not more than 30) before signing and accepting the offer (due to the conditions of consumer law in France).

Finally sign the documents and send it to your HSBC France relationship Manager who will then send a copy to the Notaire.

6. Your mortgage funds are transferred to the Notaire.

The Notaire prepares the deed of sale to be signed and will request the mortgage funds. As soon as you sign the relevant documents, you become the owner of a French property.

NB : the length of time between the initial sale contract and completion can vary but it is normally around 2 to 3 months.

Welcome to France!