# Obtaining a Mortgage in France



## Stephen51

I am a 72 year old retired US citizen. I would love to buy a property near Pau. What are the chances of getting a Mortgage in France or will I need to pay Cash?

Thank You.


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## BackinFrance

Stephen51 said:


> I am a 72 year old retired US citizen. I would love to buy a property near Pau. What are the chances of getting a Mortgage in France or will I need to pay Cash?
> 
> Thank You.


The Bank of France has placed severe restrictions on mortgages that impact all borrowers. If you can fund the entire amount of the purchase, that will save you no end of problems.


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## Stephen51

Like most, I don't like to part with my Cash. I think I would buy less house if I need to pay Cash. I heard that at my age they don't make Mortgages.


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## dpdapper

Unless the rules have changed, when we obtained a mortgage they would not lend to any one over 75 years old. At the time, that meant a 22-year mortgage, maturing or paying off when I turn 75. In addition, regardless of your creditworthiness, you will also be required to obtain life insurance in the amount of the loan benefiting the lender (like credit insurance in the US). That may be what dictates the 75-year-old limit on mortgages as it is understandably difficult to obtain life insurance if you are over 75. FWIW, we used a loan broker to obtain our mortgage: cafpi.fr.


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## Bevdeforges

Don't forget that under French inheritance law, the heirs inherit both the assets and the debts of the deceased. Plus, the heirs have the right to reject the inheritance if they so choose (usually done because they don't want to take on the debt repayment). Making a mortgage loan to a retiree (especially one over 75) exposes the bank to a pretty hefty risk - especially when you're dealing with a foreigner retiree who doesn't fully understand the French inheritance laws (or the French laws on making loans, which are very very different from the way things work in the US).


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## BackinFrance

Cafpi have an interesting article on the Taux d'usure, what it is, how to calculate it etc.


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## 255

@Stephen51 -- While the only legal age restriction to getting a mortgage is you have to be 18 or older. As @dpdapper posted 75 is usually the limit that most lenders enforce. Although, any potential borrowers over age 60, will have to jump through hoops to obtain a new mortgage. Good luck -- but buying a place outright is probably your best bet. Cheers, 255


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## BackinFrance

All borrowers in France now have to jump through the Taux d'usure hoop.. It is not easy to do.


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## Aloysius_

After spending a considerable amount of time assembling documentation of our financial assets, pensions, and so forth, followed by a fairly brief meeting with my French bank conseiller, we concluded that pursuing a mortgage in France would be a waste of time and energy with an exceedingly low probability of success. 

We paid cash for our house.


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## BackinFrance

Just to be clear, the Taux d'usure is not to do with with wear and tear, but rather how much you can borrow, at what rate and perhaps most importantly how much the BdF considers you can 'afford' to repay based on their own unyielding calculations. It really hit the headlines here in July, the last time it changed (it changes every quarter) because of the extent of the change. Financial institutions in France are subject to massive fines if they don't comply.


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