Borrow Against Property in France

Can you borrow against a property you own in France instead of selling it? Yes, if you are a tax resident in France. You can borrow up to 70% of the property value while keeping full ownership. PraxiFinance, specialist in property-backed finance in France since 1990, structures the file and presents it to its partner banks.

What it means to borrow against property

Borrowing against property means using real estate as collateral to secure financing. Instead of selling the asset, you leverage its value to obtain liquidity. Lenders evaluate the market value of the property and finance a percentage of it, known as the loan-to-value ratio.

Compared with unsecured borrowing, property-backed lending provides larger amounts, longer repayment horizons, lower interest rates and greater structural flexibility. For many owners, it is the difference between restructuring their finances comfortably and being forced into a premature sale.

For the full mechanism, see how equity release works in France and mortgage-backed loan in France.

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Eligibility criteria

You are eligible if all of the following apply.
You are a tax resident in France and you live in France.
Your property is located in metropolitan France and is worth at least 300,000 euros.
You want to borrow at least 100,000 euros, up to a maximum of 70% of the property value.
Your household income is at least 4,000 euros per month, and at least three times the future monthly repayment. Income is assessed in full. Property value alone is not enough, whatever the value of your home.
The property is held in your own name. Properties held through an SCI are not eligible.

Worked examples

Property worth 1,000,000 euros, loan of 200,000 euros over 25 years. Interest rate 5.7% per year. Monthly repayment 1,252 euros. Arrangement fee 8.5% of the amount borrowed, or 17,000 euros, so you receive 183,000 euros. Loan-to-value 20%.

Property worth 300,000 euros, loan of 100,000 euros over 10 years. Interest rate 5.7% per year. Monthly repayment 1,095 euros. Arrangement fee 8.5%, or 8,500 euros, so you receive 91,500 euros. Loan-to-value 33%.

If you live abroad

If you are domiciled abroad, both fiscally and physically, borrowing against your French property is not available to you. French banks lend against French property to French tax residents. Foreign banks do not lend against foreign assets. No amount of documentation changes this.

There is, however, one solution built for exactly this situation.

If you are selling your French property, or intend to sell it, a deferred-price sale lets you receive an advance now rather than waiting for a buyer. The property is sold to an investor at an agreed price below market value, and you receive the funds immediately. When the property is resold on the open market, you receive the difference between the resale price and the initial price, less the investor's fee.

It is assessed on the property, not on your income. Your country of residence is not an obstacle. A deferred-price sale can also be structured on a property held through an SCI, unlike a mortgage-backed loan.

Eligibility: the property is in metropolitan France and worth at least 300,000 euros, held in your own name or through an SCI, and you are selling or intend to sell.

See non-resident mortgage in France and the deferred-price sale simulator.

Why owners borrow against property in France

Certain patterns appear consistently.

Unlocking illiquid wealth. French real estate has appreciated substantially over recent decades. Many owners hold significant unrealised gains but lack accessible cash. Borrowing mobilises that capital without disrupting ownership. See property rich but cash poor in France.

Financing a new acquisition before selling the current property, avoiding rushed negotiations and protecting long-term value.

Managing financial pressure. Tax obligations, inheritance settlements, divorce arrangements. Temporary liquidity needs arise even among financially disciplined households. See need cash urgently in France and get cash from property in France.

Supporting retirement. Owners in retirement often prefer leveraging property rather than liquidating investments during unfavourable market cycles. See using property to fund retirement in France.

How much can you borrow?

Up to 70% of the property value, with a minimum of 100,000 euros. The exact amount depends on the property, the valuation, and your repayment capacity.
Prudent borrowers focus less on the maximum available and more on sustainable levels aligned with a long-term strategy. Liquidity should strengthen resilience, not create vulnerability.
To explore alternative structures, see refinance your property in France and equity release vs remortgage in France.

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Advantages

The main strength of property-backed borrowing is that it preserves optionality. Rather than triggering a capital gain, disrupting inheritance plans, or exiting a strong real estate position, you retain control while accessing funds.

Selling is irreversible. Borrowing is not.

Risks to understand

Market fluctuations, interest rate movements and long-term repayment capacity must all be considered. Over-leveraging is the most common mistake. Property should act as a stabilising asset within a broader wealth strategy, not as a source of financial strain.

This is precisely why income is assessed alongside property value. A loan you cannot service is not a solution. See safe equity release in France.

Borrowing or selling: a strategic decision

Selling converts property into cash immediately but eliminates future appreciation and control. Borrowing maintains exposure to the asset while solving a short-term liquidity need.
The right choice depends on your time horizon, your attachment to the property, and your broader wealth allocation.
If your property has been on the market without an offer, see what to do if your property is not selling in France.

About PraxiFinance

PraxiFinance has specialised in property-backed finance in France since 1990, with offices in Paris and Nice. The firm is registered with ORIAS under number 13005512 and operates within the regulatory framework of the ACPR.

It processes more than 4,000 financing requests per month and publishes the only recurring barometer of the French property-backed lending market. It is regularly cited as a market reference by Les Echos, La Tribune, Le Monde and BFM. See best equity release companies in France.

English-speaking advisers handle files for international owners resident in France.

Call +33 1 85 09 70 40 to check your eligibility.

FAQ

Can I borrow against my house in France?

Yes, if you are a tax resident in France, your property is worth at least 300,000 euros, and your household income is at least 4,000 euros per month.

How much can I borrow?

Up to 70% of the property value, with a minimum of 100,000 euros.

Can non-residents borrow against a French property?

No. A mortgage-backed loan requires French tax residency. If you live abroad and are selling, a deferred-price sale may apply.

Is my income really assessed, even if my property is valuable?

Yes. Your household income must be at least 4,000 euros per month and at least three times the monthly repayment. Property value alone is never sufficient.

Can I use a property held through an SCI?

Not for a mortgage-backed loan. Properties held through an SCI cannot be used as security for this type of financing. A deferred-price sale, however, can be structured on a property held through an SCI. If your property is held this way and you are selling, this route remains open to you.

Is borrowing better than selling?

It depends on your objectives. Borrowing preserves ownership and future appreciation. Selling provides immediate liquidity but is irreversible.