HSBC France

The main questions to ask yourself
when buying a property

How much can you borrow?

It is essential to evaluate how much you can afford before thinking of buying a property. Start first of all by estimating your personal contribution (savings, family gifts, help from your company, etc.). This contribution must cover the notary's fees and the guarantee fees, then work out with the bank how much you need to borrow.

What kind of loan should I apply for?

There are different types of property credit. Your bank will advise you on the financial arrangements required for your plans. However, it is best to know exactly what is being talked about before signing an agreement.

  • Fixed-rate mortgages guarantee monthly payments and total mortgage costs that are established at the time the mortgage is being arranged
  • Variable-rate mortgages offer the customer a choice of monthly payment amount or mortgage period based on interest-rate developments
    Generally, with this type of credit, there is no limit as to how much the rate can drop whereas there is a ceiling for interest rate increases set at a certain level effective from the signing of the contract (capped variable-rate mortgage)
  • Subsidised mortgages are regulated by the Government. The banks are at liberty to set some of the rates within the limits of caps fixed by the State

Which insurance should I take out?

  • Loan insurance
    When you take out a mortgage, you are obliged to take out loan insurance. It insures you for the outstanding repayments due on your mortgage in the event of death or total irreversible loss of autonomy (TILA). With temporary total incapacity to work (TTIW) or total permanent disability (TPD), you are also protected as your loan repayments are taken care of.

The lender will offer you the policy that it has taken out, which will provide you with frequently negotiated rates and cover.

  • Unemployment insurance
    Additionally, there are insurance policies which provide cover in relation to your monthly repayment if you lose your job.

Which bank guarantees should I choose?

To ensure that your credit is repaid in the event of a problem, the bank will ask you for guarantees.

  • Crédit Logement, a French financial institution which specialises in credit guarantees, may be suggested to you if your application meets certain criteria and subject to you being accepted by the establishment.
  • Privilège du Prêteur de Deniers (PPD) guarantees (a Fund-Lender's lien on the property) or a traditional mortgage both constitute immovable security on the financed property.
    The Privilège du Prêteur de Deniers is preferable if the loan is to finance the purchase of the property. A mortgage is used if the Privilège du Prêteur de Deniers cannot be used: this is the case if the loan is not to be used for the purchase of a property (works) or if payment is to be made by subsequent fundraising (Vente en l'Etat Futur d'Achèvement or off-plan sales).

    If required, additional guarantees are available in the form of personal surety or a pledge of income from savings or financial assets.

HSBC has a lot of know-how to share with you to help you make your property plans a reality. Why wait? Contact your local bank advisor right away.

A loan is binding and must be repaid. Please check that you are able to make the repayments before committing yourself.

* Dial +33 810 246 810 from abroad.