When searching for a French mortgage, it is important to know that there are three main types of costs associated with obtaining a mortgage in France. The three main costs are: the mortgage deposit, bank arrangement fees and notaire/legal fees.

The mortgage deposit is the initial down payment required by the French banks on the mortgage loan. The amount required is determined by a borrower’s income taxes, revenues, outstanding loans, other mortgages, nationality and country of residence, and much more. For most non-residents, the minimum amount required for the deposit is at least 20% of the purchase price of the French property.

French banks also require bank arrangement fees for organizing and providing French mortgages. Usually, this fee is around 1% of the purchase price, but it varies from bank to bank. This is usually negotiated down by your French mortgage broker.

The notaire and legal fees are approximately 7-8% of the purchase price for an existing property and 5% for a new property. There are also agency fees involved in the process, but negotiations can occur over whether it is the buyer or the seller who pays the agency fees.

An important decision when dealing with French mortgages is choosing a fixed mortgage rate or a variable mortgage rate. Both types are very popular, but your final decision depends on whether you want more security or more risk. If you’re looking for security and guaranteed monthly payments, then you would most likely want a fixed mortgage rate, but it comes at a higher rate. On the other hand, if you’re interested in an initial lower mortgage rate, you would prefer a variable rate. However, there is more risk involved with this option because the mortgage payments are not be as stable.