Remortgage with Cash Out

Refinance your French mortgage to get a better interest rate or lower monthly payments and take cash out to use for other projects at the same time.

The new loan amount must not exceed 50% of the value of your French property with a minimum loan amount of 300,000 eurosMany banks require an annual household income of 50,000 euros or more to qualify. Please note we are not able to offer remortgage with cash out for leaseback properties. Note that most banks require the existing mortgage on the property to be no more than 30% of the new mortgage. For example, if you have a new mortgage of 300,000 euros, your existing loan must be no higher than 90,000 euros and the value of your apartment must be at least 600,000 euros.

To qualify for cash out when refinancing, you must declare a coherent project for the cash.

For example :

  • purchase of residential real estate outside of France
  • renovation, interior furnishings
  • repayment of money used for completed renovation to savings
  • purchase of car, boat, plane, works of art
  • financing children's education

Here are some examples of projects are NOT approved :

  • repayment of existing debts
  • purchase of commercial real estate
  • investing in pension plan, mutual fund, bonds
  • commercial use such as working capital for a business
  • purely speculative investments

You will be required to make a signed declaration for the use the of funds.

Before applying, it's important to have an estate agent provide a conservative valuation of the resale value for your French property. French banks require this before considering your application.

There are also transaction costs to plan for when considering if your current property value is high enough for the project to make sense.

  • Prepayment penalty on your existing loan - check your loan offer to see if this applies, the maximum any French bank can charge is six months interest on the amount repaid, not to exceed 3% of the oustanding capital.
  • Notary costs - in most cases, a French notaire must change the charge registered on the title of your property from the old bank to the new bank, the cost of this tends to be about 1.5% of the new loan amount.
  • Bank and broker fees - this will depend on your specific project and the bank chosen, plan on 1.5% of the new loan amount for estimation purposes.

Example

Value of your French property = 600,000 €

Outstanding balance on your existing French mortgage = 100,000€

Additional funds to be borrowed = 200,000€

Prepayment penalty on your existing French mortgage = 2000€

Notary costs = 4500€

Bank and broker transaction costs = 4500€

Total new loan amount = 300,000€ (50% of property value)

Cash received less transacation costs = 189,000€

Please note that you will be required to provide a complete mortgage application and must financially qualify for the mortgage. The French bank will analyse your debt to revenue ratio, your net assets and your monthly disposable income when considering your request.

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Testimonials

David, South of France, Equity release on home in France

"...The process was simple, effective, and quick... France Home Finance have proven to be outstanding in their service and flexibility... they even negotiated a rate reduction after the bank had made an offer at a higher rate. Now that's incredible!"

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Resources

Best French Mortgage Rates

Find the best interest rates available on the market for your French mortgage here:

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French Interest Rate Indices

Check the latest Euribor and other key French mortgage rate indices here:

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Case Studies

Equity release to renovate your French Home

The Reynolds decided to refinance their 250 year-old farmhouse to recover cash they had invested in renovations.

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