In France, the solutions for financing a property often seem to be limited to borrowing from a bank or from one’s own family. But the means of financing the purchase of real estate are actually more varied than that.
I hardly need to introduce it to you as this means of financing is, by far, the first recourse that we think of to buy a house or an apartment. The initial contribution is in most cases a factor that has a huge impact on the rate of the loan. Playing competition between banks can have an effect on the interest rate although overall your bargaining power is limited. The “cost” of money is conditioned by the rates imposed by the ECB. It is therefore up to you to stay on the lookout for the central bank’s directives to obtain the most interesting loan. Do not miss my article on “The steps to follow to find a loan without proof”.
This is certainly a less expensive method than the previous one. But be careful: it is not because you do not go to a bank that you have to do without formal procedures. Asking your family for money is risky because it puts your ties with your loved ones at risk. By going through a notary to formalize the contraction of the debt, you save yourself any potential misunderstanding on the repayment deadlines or even on the amount of the loan. Writing is even mandatory when the amount exceeds €1,500.
The mortgage is relatively unknown in France and yet more than common among our Swiss neighbors. This is a loan that engages part of the property you already own. In particular, this allows you to free up funds from a bank when you have been refused a conventional loan. In France, the mortgage system is very supervised to avoid the abusive creation of funds. In Switzerland, the mortgage is a traditional method of financing whose rates evolve according to your bargaining power and according to the market.
There are also special programs that support you in your purchasing process. We can note, for example, the zero-rate loan that can be granted to first-time buyers, developed within the framework of the PTZ+. You can also turn to the CAF which offers assistance programs.