French Mortgage Rates

Most French mortgagees provide up to 80% of the value of your property, and in some cases, it is possible to borrow more. It is important to remember that loan values in France are always linked to the valuation of the property, not the purchase price. Although most French mortgages are related to a percentage of valuation, they cannot exceed the price declared on the title deed.

Properties in France usually include the agents fees and are quoted in this manner: ?89,000, FAI - meaning "Frais d Agence Inclus". Usually the buyer pays the agents fee, although this is not always the case. The property price exclusive of the agents fee is called the "net vendeur" price.

If the property was constructed less than five years before the sale, value added tax (TVA) of 19.6% is applicable. In this case, the buyer will pay slightly lower fees and registration costs.

The notaires fees payable by the buyer can be as much as 10% of the value of a low-priced property but is normally around 7% of "net vendeur" price.

The stamp duty payable to the notaire is usually 0.6% of your French property value if it is less than 5 years old, otherwise it is 6%.

A French land registry fee of about 5.09% is payable on completion (much lesser for new properties) together with mortgage registration fees of between 1% and 2%. On signing of the final Acte de Vente, the notaire collects transfer taxes from the buyer on behalf of the various local authorities - departementale (4.2%), communale (1.2%) and regionale (1.2%). Transfer taxes, land registry and stamp duty usually add on approximately 7-7.5% to the purchase price.