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Brochure Buying Home France PDF
Brochure Buying Home France PDF
in France
Welcome
to France!
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HSBC France will help you with Our English-speaking
the mortgage process and specialists will take care of you
make it easier for you. through every step of your
project and give you all the
Our Buying a home in France necessary advice. You will be
offer is for non-residents who introduced to English-speaking
need to finance their residential relationship managers in your
property in france. There is desired location.
no need to come to France for Welcome to France!
your mortgage: all documents
can be completed before
your arrival.
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HSBC France
in every step
of your project
As you would expect from a member of the
HSBC Group, one of the largest banking and
financial services organisations, we offer practical
assistance with the purchase of your property.
Benefit from the Buying a home in France process.
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General
Buying a home in France.
Currency: EURO.
Repayments:
- Existing property: Repayment of capital and interest will be
required in monthly instalments. The first instalment will be
dependent on the date of the first drawdown of the loan.
- Property under construction: the first instalment will be
payable within one month of the first drawdown of the
loan. The instalments are based on the amount of funds
released. A maximum of 24 months deferred payment of
capital may be granted on that occasion.
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Documents
required for mortage
arrangement:
Property details:
- Preliminary contract
Evidence of income:
- Last 3 pay slips and a letter
from your employer confirming
your salary, position and length of
service (if self-employed, please
provide your last 3 years audited
accounts)
- Latest income tax return (if self-
employed, please provide your
last 3 tax returns)
- Evidence of other income (rent
agreement or bank statements
for investment income)
- Last 3 months Bank statements
Proof of identity:
- Personal identification (passport,
Currency risk:
birth and marriage certificates must
It is worth considering how
be certified by an HSBC officer or a
to protect yourself against
legal authority).
currency risks. The foreign
- Confirmation of address: copy of
exchange market can be
gas, electricity or phone bill (not
unstable and anyone looking to
mobile phone) showing present
undertake a large transaction
address (dated within last 3
should be aware of the risks.
months), also must be certified by
an HSBC officer or a legal authority.
Changes in the exchange rate
may increase the sterling
equivalent of your debt. For
more information, or to set up
our forward contract facility,
please, contact us.
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Main criteria Yearly income of more than Euro
100,000 net after taxes or GBP
- Self-employed: you must have
run your business for at least
for mortgage 120,000 gross, and financial
investments or savings of more
3 years.
You want to repay your You want to balance the risk? How much can I borrow?
mortgage with constant Our advice: Benefit from the mix Under French legislation HSBC
monthly payments? of a fixed rate for part of the France has to check: the income
Our advice: You should choose amount and a variable rate for level, its stability over the duration
a FIXED RATE mortgage. When the rest. You will then be able to of the mortgage, and the amount of
the mortgage is signed, a constant balance risk and security: your the regular outgoings. This process
rate is calculated on the basis of mortgage is divided into 2 parts is done to be sure of the borrowers
current bond prices. The rate is (all details on fixed and variable capacity to repay the mortgage.
fixed for the term of the mortgage. rate mortgages are explained For this purpose, HSBC France
The rate, the term and the amount above) verifies that the total loan
of monthly payments are fixed. You repayments (including the
will know exactly how much you You want to take advantage of requested mortgage) and charges
will have to pay each month until a good interest rate while you do not exceed 33% of your net
the end of your mortgage. You will decide upon maximum monthly monthly income. We suggest you
not have to worry about it. payment in case the rate to complete our request and we will
Early repayment (partial or increases? contact you very shortly. The final
total) can be done at any time. Our advice: You should choose decision and quotation are given
A fee equivalent to 3% of the a CAPPED VARIABLE RATE ; by our Direction du Crdit, based
amount repaid will be charged. a yearly revision of the mortgages on many criterias. Each mortgage
rate is made, based on the request is analysed on a case by
You want your monthly benchmark rate with a guaranteed case basis.
payments to be in line with ceiling rate of +2%.
current interest rates? Principle: This is a good
Our advice: You should choose compromise between a variable
a VARIABLE RATE ; this rate is and a fixed rate since you can
linked to the Euribor 12 months. benefit from a decrease in rates
The rate is revised yearly on and have security in case of rate
the date the mortgage was increases. Note that you cannot
completed. On the one hand, switch to a fixed rate during
if the rate decreases, your the mortgage.
monthly payments and the Early repayment (partial or total)
cost of your mortgage will be can be done at any time, a fee
reduced. On the other hand, if equivalent to 3% of the amount
the rate increases, please note reimbursed will be charged.
that your monthly payments
will also increase. You can
switch to a fixed rate at any
moment without any fees.
Early repayment (partial or total) can
be done at any time without any
charges.
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Everything you
need to know
before starting
your project
Steps towards
your French property
The purchasing process
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1. Consult HSBC France By notifying your decision by a Finally, sign the documents
website (www.hsbc.fr) to fill registered letter with return receipt and send it to your HSBC
in the online request form. Our within 7 days, you will not have to Relationship Manager who will
specialists will contact you to pay any penalties. From the day send a copy to the Notaire.
discuss your project. following the withdrawal, you must
be refunded within 21 days. 6. The Notaire prepares the
2. Find the right property in the deed of sale to be signed and
right area. You may have already 4. Fill in the Buying a home will request the mortgage funds.
decided on a specific area or may in France account opening, As soon as you have signed the
have a French region in mind, the mortgage application and relevant documents, you are
perhaps having been there on the life cover subscription. the owner of a French property :
holiday. Once completed, send it to your Welcome to France!
Relationship Manager with all the NB: the length of time between
3. Sign the preliminary contract requested documents. You will the initial sale cont ract and
(preliminary sales agreement), be issued with a mortgage offer completion can vary but it is
once you have found the right (subject to HSBC France approval normally around 2 to 3 months.It
property. An initial deposit should on your mortgage and insurance is highly recommended that you
be made (usually 10% of the applications). ensure your new home is insured
purchase price). Please note that in against damage. The policy must
France the law on Urban Solidarity 5. Once you have received the be effective from the same date as
and Renewal protects the buyer: if mortgage offer, you must wait at the signing of the deed of sale.
you have changed your mind, you least 10 working days (not more
can withdraw within 7 days after than 30) before signing and
the day following the presentation accepting the offer (conditions
of the letter notifying the deed. of Consumer Law in France).
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The role of the
notaire
In France, the conveyancing process is undertaken
by a notary.
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Rates and
Taxe foncire (land tax):
The amount of the Taxe foncire depends on the size
and the location of the property. The tax is paid by the owner
taxation
of the property on the 1st of January of each year with
payment due in the final quarter of the year (owners of new
constructions are exempt of tax payment for the first two years).
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Glossary
Acte de vente: Deed of sale.
FNAIM: The initials of the Federation Nationale des Agents
Immobiliers et Mandataires which is the main French national
Useful french
association of estate agents.
Maitre doeuvre: Master builder.
Agent Immobilier: Real estate agent.
Town Should you have details about the property or have signed
a preliminary contract, please join them to this application
Department and Post Code
Nature of Business
Established since Under your control since
Turnover Gross Profit Net Profit
Lastest complete
financial year
Year prior to above
Year prior to above
Existing Mortgages:
Other Loans
Legal Payments (eg. Maintenance)
Signature Signature
Date Date
Please send to: bhf@hsbc.fr or PID - 103 avenue des Champs-Elyses - 75419 Paris Cedex 08 or Fax on 00 33 1 40 70 35 00
HSBC France
Socit Anonyme au capital de 337 189 135 euros - SIREN
775 670 284 RCS Paris - Sige social : 103, avenue des
Champs-Elyses - 75008 Paris - Banque agre par lAutorit de
Contrle Prudentiel - Publi par HSBC France
HSBC France
Socit Anonyme au capital de 337 189 135 euros
SIREN 775 670 284 RCS Paris
Sige social : 103, avenue des Champs-Elyses 75008 Paris
Banques et socits de courtage en assurance immatricules
auprs de lORIAS (Organisme pour le Registre des
Intermdiaires en assurance
www.orias.fr).