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 euros. Many 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 :
Here are some examples of projects are NOT approved :
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.
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.