Investing in real estate in France: the advantages of a financing certificate for foreigners

Since January 2023, the statistics have been edifying: almost 50% of loan applications are rejected, particularly for first-time buyers aged between 30 and 55 looking to acquire their main residence.

French real estate remains an attractive target for international investors, but obtaining financing is often a major challenge.

That's why the teams of real estate agents at Côte d'Azur Sotheby's International Realty recommend that their buyers apply for a financing certificate, helping to smooth and facilitate the purchasing process.

In what situation should you request a financing attestation?

The current economic climate is creating difficulties in obtaining financing for everyone, and sometimes more particularly for foreign buyers considering the acquisition of a second home or investment property in France.

Faced with these difficulties, it is crucial for non-resident borrowers to benefit from expert guidance and define a clear strategy to save time and optimize their resources.

The financing attestation is not compulsory, but it demonstrates the borrower's meticulous preparation to his real estate agent and seller. It offers a clear understanding of his borrowing capacity and available personal contribution.

What information should be provided to obtain a financing attestation?

A trusted broker will require the following information to validate a non-resident's financing application:

- Confirmation of future ownership structure and borrowers for the project.

- Copies of identification documents for all borrowers.

- Confirmation of borrowers' residency.

- 3 years' income verified by an independent chartered accountant or employer's certificate with additional information (payslips, employment contract, bonus plan, etc.).

- Proof of personal contribution or liquid assets (savings accounts, investment portfolio, etc.).

- Confirmation of assets (property, unvested shares).

- Confirmation of liabilities (fixed and variable).

- Currency variations depending on country of residence of acquiring borrowers and country of acquisition.

- Mortgage insurance or loan facility commitments.

- Property location - each lender applies a loan-to-value (LTV) / risk ratio.

- Property condition - subject to independent appraisal above €2,000,000.

The advantages of the financing certificate

The advantages of the financing attestation for foreign borrowers

While investing in a luxury property abroad may seem complex for international customers, there are nevertheless certain advantages to obtaining a financing attestation when you're a borrower:

- Stand out from other buyers with a solid financing certificate.

- Access to the resources and expertise of a reputable mortgage broker.

- Establish a relationship of trust and build a reputation as a qualified and reliable buyer with your real estate advisor for potential market opportunities.

- Have a clear understanding of your budget and personal financial situation.

Benefits for real estate advisors

For real estate professionals, presenting a property to a buyer in possession of a financing certificate means:

- Ensuring the quality of the potential buyer to whom we present the property under mandate, which is often confidential and highly prestigious.

- Ensure that the transaction is carried out correctly when the funds are transferred.

- Promote your professionalism among industry leaders.

The attestation of financing is therefore a crucial tool for buyers wishing to invest in French real estate, and particularly for international investors.

Côte d'Azur Sotheby's International Realty regularly works with Fortier Finance - an independent mortgage broker - to help its international buyers and borrowers find financing solutions adapted to their situation. With this certification, foreign buyers can successfully navigate the French real estate market and complete their investments with confidence.

To find out more, contact our prestige real estate experts, who will be happy to advise you and refer you to a qualified professional if necessary.

+33 (0)4 92 92 12 88

info@cotedazur-sothebysrealty.com