The French mortgage checklist for international buyers

International buyers are often surprised by the gap between being able to afford a property and being financeable by a French bank. The credit committee is not only testing income. It is trying to understand the full transaction: where the buyer lives, how wealth was created, which currency supports the loan, how the property will be held and what liquidity remains after completion.

The first objective is therefore clarity. A strong file lets a banker understand the borrower and the requested structure in a few minutes, then verify that account through the supporting documents. Sending a large, unstructured data room usually slows the process rather than strengthening it.

For a €1M+ acquisition, establish borrowing capacity and the likely bank route before negotiating around a specific loan amount.

Three separate cash commitments are regularly confused. The equity contribution is the part of the purchase price not financed by the bank. The preliminary-contract deposit is an amount paid when the promesse or compromis is signed and is normally credited toward the price at completion. It is negotiable and may be set at up to 10% of the price. Acquisition costs sit outside the price and must also be funded.

For an existing French property, acquisition costs are commonly around 7% to 8% of the purchase price; qualifying new property is usually closer to 2% to 3%. Legal structuring, valuation, mortgage-security, broker and renovation costs may sit on top. The deposit must not be counted twice in the final budget, but its payment date creates a real liquidity requirement before the loan is released.

Take a €2M existing property with an indicative 20% equity contribution. The buyer should plan for €400,000 of equity, approximately €140,000 to €160,000 of acquisition costs, and any financing or advisory costs. If a €200,000 deposit is due at the preliminary contract, it forms part of the price rather than an extra €200,000—but it must be available earlier.

French lending rules use a 35% maximum effort ratio and a maximum maturity of 25 years as their central reference, with limited flexibility available to banks. For an international borrower, the important question is how the bank calculates the inputs. Variable compensation may be averaged, company distributions may be discounted and income received in another currency may be stressed.

Existing mortgages, private loans, maintenance obligations and recurring commitments are included even when they sit abroad. Rental income is not always taken at face value. A large asset base is helpful, but it does not automatically replace demonstrable repayment capacity unless the file is being considered through a private-banking or asset-backed structure.

The bank must be able to identify every borrower, beneficial owner and acquisition entity. Names and addresses should be consistent across the file, and any change in residence or nationality should be explained rather than left for compliance to discover.

• Passport and recent proof of residential address for each borrower
• Marriage certificate, matrimonial regime or civil partnership information where relevant
• Tax identification numbers, tax-residence declaration and recent personal tax returns
• Company, trust or holding-company documents if an entity participates in the acquisition
• A concise note explaining dual residence, an imminent relocation or a complex ownership chain

A salaried executive, a founder and a portfolio investor should not be presented in the same way. The bank wants repeatability, not merely a high figure in the latest year. The file should separate fixed salary, variable compensation, dividends, carried interest, rental income and one-off capital gains.

• Salaried buyers: employment contract, recent payslips, annual compensation statements and two to three years of tax returns
• Entrepreneurs: three years of company accounts, current management figures, ownership chart and an explanation of salary and dividend policy
• Partners and founders: vesting schedules, liquidity events and evidence separating recurring cash income from paper equity value
• Investors: custodian statements, distribution history and the tax treatment of recurring portfolio income

If this year's income differs materially from prior years, explain why in one paragraph and support the explanation with evidence.

The asset statement should show what is owned, where it is held, in which currency and whether it is liquid. The liability schedule should use the same level of discipline: lender, outstanding balance, monthly payment, maturity and security. This lets the bank see both net worth and the commitments competing with the proposed mortgage.

Source-of-wealth and source-of-funds checks are not an afterthought. Sale contracts, inheritance documents, audited company accounts or investment statements may be needed to evidence the origin of the contribution. Transfers through several accounts immediately before completion create avoidable questions; plan the route of funds early.

The bank is also underwriting its security. Supply the signed preliminary contract when available, the diagnostics, floor area, intended use, works budget and details of any lease. For a villa, co-ownership apartment, listed building or property acquired through an SCI, the bank may require different documents and legal review.

The financing condition in the purchase contract must reflect the financing being sought: amount, duration, rate assumptions and a realistic deadline. A generic clause can leave the buyer poorly protected if the application later changes. The notaire and the buyer's legal adviser should settle the drafting; the financing adviser should make sure it matches the intended bank strategy.

A well-prepared eligibility review can usually establish whether the profile is credible within 24 to 48 hours. Structuring, compliance and placement with suitable banks often require three to six weeks. Formal approval, valuation, insurance, the binding offer and the statutory steps before funds release add further time.

For a cross-border prime transaction, eight to sixteen weeks from a complete file to completion is a sensible planning range rather than a promise. Summer holidays, year-end committees, translations, entity structures and valuation questions can extend it. A short contractual deadline does not make the banking work shorter.

The strongest submission begins with a two-page credit memorandum: borrower profile, transaction, requested loan, income, assets, liabilities, contribution, property and key risks. The supporting documents then follow the same order and use clear English or French file names. Every number in the summary can be reconciled to a source document.

Before approaching banks, resolve inconsistencies, missing tax years and unexplained transfers. Decide which information genuinely needs translation. Most importantly, approach institutions that can consider the borrower's country, ticket and income profile. A perfectly assembled file sent to a bank that cannot take the risk is still the wrong application.