French mortgages for non-residents: how banks actually decide

Overseas buyers regularly tell me the same story: they approached a French bank, were told the application was interesting, and then heard nothing for six weeks before a flat refusal with no reason. It feels arbitrary. It is not — French underwriting simply follows rules that are rarely explained to a non-resident.

I am Audrey Hurelle, an independent mortgage broker on the French Riviera. Here is what actually happens inside the bank, and what determines the answer.

1. There is no single French mortgage market

Every bank sets its own non-resident policy, and it changes. Some lend only to residents of the European Economic Area. Some accept income in a foreign currency, others apply a discount to it or refuse it outright. Some finance rental investments for non-residents, others only main or second homes.

2. Affordability is calculated with a strict French rule

French lenders assess a maximum debt-to-income ratio, applied to your total worldwide credit commitments — including a mortgage on your home abroad, car finance and personal loans. Regulators allow limited flexibility above the standard threshold, but banks use it sparingly and reserve it for strong files.

Two consequences for overseas buyers. First, existing borrowing abroad counts fully against you. Second, the cost of the compulsory loan insurance is part of the monthly payment used in the calculation — so a poorly negotiated insurance premium directly reduces how much you can borrow.

3. How foreign income is read

• Salaried employment with a permanent contract is the easiest profile, wherever the employer is based.
• Bonuses and commission are usually averaged over several years, and sometimes only partly counted.
• Self-employment and company directorships require two to three years of accounts; a recent change of structure is a common cause of refusal.
• Rental income is generally counted at a reduced percentage, not in full.
• Income in a currency other than the euro may be discounted to absorb exchange-rate risk — the size of that discount varies enormously between lenders.

The presentation matters as much as the numbers. A file that reconstructs three years of income clearly, with the tax returns that support it, gets read very differently from a bundle of documents left for the underwriter to interpret.

4. Deposit and available funds

A non-resident is normally expected to put in more than a French resident, and purchase costs — notaire fees, guarantee, broker fee — are paid on top of the deposit, not from the loan.

Banks also look at what remains after completion. Retained savings reassure an underwriter far more than a slightly larger deposit that leaves you with nothing. If you have a choice between the two, keep the reserve.

Source-of-funds documentation is mandatory and non-negotiable: a sale, a gift, savings history, all must be evidenced. Gathering it early prevents the most common late-stage delay.

5. Loan insurance is where the real money is

France requires borrower's insurance in practice on every mortgage. It covers death and disability, and its cost depends on your age, health, occupation and whether you smoke. On a long loan it can represent a very significant share of the total cost of credit.

You are not obliged to take the bank's group policy. You may choose an external insurer offering equivalent cover, and you can switch at any time. For a healthy borrower this is usually the largest single saving available on the whole file — larger, often, than a rate negotiation.

6. What a French bank counts as a good file

• Stable, documented income over three years, in a currency the lender accepts.
• Low existing debt worldwide.
• A deposit above the minimum, with savings retained after completion.
• A property that is easy to resell — a criterion that quietly matters a great deal.
• A single, complete application arriving through one channel.

7. The timetable, honestly

From application to formal loan offer, expect six to eight weeks for a non-resident file, sometimes more when documents need translating or a foreign tax authority is slow. Once the written offer arrives, French law imposes an eleven-day reflection period before you can accept it — that delay is fixed and cannot be shortened.

Build this into the mortgage condition in your compromis. Agreeing to a short period to please a seller is the single most avoidable risk in the whole purchase.

8. Common reasons a non-resident file is refused

• Approaching a bank whose current policy excludes your country of residence.
• Existing debt abroad that pushes the ratio over the threshold.
• Income in a currency the lender heavily discounts.
• A recent change of employment or company structure.
• Incomplete source-of-funds evidence.
• The same application submitted through two intermediaries.

Almost all of these are identifiable before the file is submitted. That is the whole point of the preparation stage.

Next step

If you are buying on the Côte d'Azur from abroad, book the free 30-minute call. We will go through your income, your existing commitments and your deposit, and you will know which lenders realistically fit your profile before you make an offer.