In order to take out a loan from abroad, you must take several steps and certain conditions must be respected. You must consider the legislation in force in the country in which you reside and opt for certain guarantees.

A loan from abroad is possible if:

  • You want to buy a property from a country other than France
  • Looking for an attractive rate available in French banks
  • You buy a property located in France

However, you must be in agreement with the law and not only look at the mortgage rate offered to you.


Legislation on foreign loans

Legislation on foreign loans

The law is not the same for all countries regarding non-resident mortgages. As a general rule, the law that is applied to obtain a loan is that of the country where the bank is located, which is why it is important to know which bank to choose and therefore the law that will apply. .

In some countries, such as Germany, early repayment can not take place before ten years. In addition, if a loan is denominated in a currency outside the euro zone, a revaluation clause must be included to cover the exchange rate variation.

The Scrivener Law (10 January 1978) on information and consumer protection for lending operations can be applied. This law protects the borrower and co-borrowers, it targets consumer loans and real estate work obtained by individuals for a period of more than 3 months and an amount ranging from 200 to 75,000 euros.

Foreign loan simulation

European legislation protects the borrower

European legislation protects the borrower

Signing a loan abroad can be done with a financial institution or a mortgage broker, this support is done with European standards that can reduce the risk of unpleasant surprises. It is important to know what the Annual Percentage Rate is:

The APRC defines the overall amount of a loan abroad over a repayment period. This scheme targets loans with interest granted by individuals and professionals ranging from 1,000 to 80,000 euros with a repayment of more than one month. The Global Effective Rate (TEG) is an important variable for a loan offer abroad.

The APR makes it possible to compare different offers, the creditors must inform the borrower abroad in a transparent way, the rates must not be erroneous or exceed the rate of wear.

Guarantees and guarantors for a loan abroad

Guarantees and guarantors for a loan abroad

The lending organization granting you international credit may ask you for a money back guarantee. Guarantees can be:

  • IPPD: Registration of the Denominator Privilege
  • Deposit with a guarantor
  • A mortgage of the good bought with the loan obtained

The IPPD is not used in all countries, it is therefore necessary to know which law is subject to the credit so that the lending organization can benefit from the registration of the Privilege of Denier of Deniers, even if it is present in the ‘loan agreement.