It is sometimes more complicated to be loaned money by a bank to invest in real estate when you live abroad. However, there are good practices that any investor should know. Discover our advice and put the odds on your side to find a mortgage. In the case of เงินกู้นอกระบบ this is important.
Choose your tax status
Not being resident in the country is not prohibitive for obtaining credit, but let’s be clear, it makes it a little more difficult. It is not so much the physical presence that counts but the tax status. Many banks refuse to lend money to people who are not officially resident in the national territory (including all online banks). As for those who are likely to do so, it will only come at the price of a slightly higher rate of 0.2 to 0.5%. Despite this increase, in most cases, French rates are more advantageous than those offered in other countries.
It is preferable to avoid – as far as possible – the employment contract under local law, which subjects the employee to the tax regime of the country of expatriation. It is offered in many expatriation cases, such as international availability. It will be all the easier for an investor to find a bank to finance it in good conditions that we have a French employment contract (and robust by its duration). However, obtaining credit for these two types of contracts is entirely possible.
You could also read: The 4 steps to obtain a mortgage in the country when you are expatriate
Use a broker
Have you thought about hiring the services of an intermediary to be sure of getting your hands on credit at the best rate? This is done a lot with our British neighbors and is developing rapidly in the country today. In the real jungle that mortgage lending has become in recent years, this is not always a miscalculation, far from it. Even if this represents an additional expense, a credit broker will save you considerable time since he will know who to turn to, because as we have seen all the banks do not lend to expatriates.
The broker will of course also be able to negotiate for you the terms of your loan with the bank (rate, duration and type of loan). Here again, as we have seen, these conditions can be a little more drastic for non-residents, the bank compensating for the risk linked to your status by a (very) slightly less favorable rate and by requiring a higher initial contribution. (sometimes up to 30%, compared to 10% for residents). So many points to negotiate hard. Easily reachable online, brokerage agencies call back the potential client within 24 or 48 hours following their request for information. Their fees usually correspond to 1% of the loan amount, but sometimes these are paid on commissions from partner banks.
Special cases: Banks are reluctant to lend to French expatriates in certain countries. Indeed for the French residing in Lebanon, in Israel, in Iraq, in Morocco, in Tunisia or in Algeria, it will be necessary to have a French contract to be able to borrow. Also, the contribution should preferably be in the country, because money transfers are difficult or even impossible between these countries and the country. If these conditions are not met, it will be difficult for a non-resident to borrow in the country.