Mortgage loans in France

Dreaming of buying a property in France? We can help you.
- Handelsbanken

We'll help you make your dream come true

Buying a property in France is very different from the way things work in Sweden or Norway. We know the French housing market and have established collaborations with French estate agents and notaries. This means that we'll be able to provide contacts and professional advice throughout the entire mortgage process.

Mortgage loans in France

For private individuals, our offering includes mortgage loans to buy a property, renovate an existing property, or re-financing of an existing mortgage loan. Your mortgage loan will be registered with Handelsbanken Luxembourg, with the property in France as collateral. Unlike French banks, we don't require life insurance for those who wish to borrow money.
In order for us to be able to assist you, you'll need to be a customer with Handelsbanken in Sweden or Norway. If you’re not already a customer, we can help you establish contact with one of our home branches.

The important role of the notary

In France, notaries play an important part. For all property purchases, the buyer, the seller, and the Bank, have one notary each. The notary fee is approximately 7.5 per cent of the purchase price.

This is how it works – step by step

  1. Apply for a committed loan offer at your Handelsbanken branch in Sweden or Norway. 
  2. Once the committed loan offer has been approved, contact us at Handelsbanken Luxembourg.
  3. The notary draws up a preliminary sales agreement.
  4. We arrange a valuation of the property.
  5. Handelsbanken verifies the valuation, approves the credit, together with your branch in Sweden or Norway, and sets the terms and conditions.  
  6. You will need to open an EUR account and fill in a direct debit mandate in order for the quarterly payments to go through. (Your branch in Sweden or Norway will help you with this if you don’t already have one.)
  7. We will send you the loan documents for signing.
  8. We will pay out the loan directly to the notary. 
  9. Completion takes place at the notary's office.
The French mortgage process with us in Luxembourg normally takes 6-8 weeks, but the total buying process normally takes up to 2-3 months.

Some facts regarding mortgage loans in France

  • Minimum mortgage amount: EUR 500,000
  • Term: 10-25 years (the loan must be repaid by the year you turn 80 at the latest)
  • Straight repayment
  • Loan-to-value ratio: 60-75 per cent of the lower value of the purchase price or the valuation
  • Interest rate: Based on Euribor floating 3-month rate with an interest rate floor of 0% plus the Bank’s margin 
  • All the buyers must be borrowers 
  • The property must be valued by a valuer that has been approved by Handelsbanken. You are responsible for the valuation costs (approx. EUR 800-2,500) 
  • Arrangement fee: Starting at EUR 1,500
  • A mortgage fee for registering the loan will be charged. This will vary, depending on the loan amount

For purchase of new builds, the purchase process and costs are different. Please contact us for more information.

How can we help?

customer service

Do you have questions or would like to apply for a mortgage in France, Portugal or Spain? Contact us at the Mortgage Banking Desk for more information. We can assist you in the following languages: Swedish, French, English, German and Spanish.

Mortgage Banking Desk
Tel: +352 274 86 41 22

Åsa Starfelt, Head of Mortgage Desk:
Tel: +352 274 86 83 61