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Remortgaging your French Property

If you are already the owner of a house or apartment in France and have taken out a French mortgage, you can take advantage of low french interest rates by refinancing your existing mortgage.

Depending on the terms of your existing French mortgage, it may be more or less advantageous to look at a remortgage.

There will be transaction costs associated with the operation which can be broken into three areas :

1) Pre-payment penalties on your existing French loan

It is usual for banks to apply an early repayment penalty if a competitor bank is refinancing your loan.  Your original loan offer will detail the charges applicable but the maximum that a bank can apply is 6 months interest on the amount outstanding, not exceeding 3% of the capital outstanding.

2) French notary costs

In most cases the French notaire will need to change the charge (lien) registered on the property, from the old bank to the new bank.  This will typically cost 1.5% of the new loan amount

3)  Bank and Broker fees

Depending on your specific project and the bank chosen, these dossier fees will vary but count on around 1.5% for estimation purposes.

 

Note that the new bank will still ask you to provide documentation of your personal finances and they will check that you qualify for the mortgage according to their underwriting rules.