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A mortgage-backed loan lets you raise capital from a property you already own in France, without selling it. This simulator gives an indicative monthly repayment and the amount you may borrow. You can borrow up to 70% of the property value, from 100,000 euros, at 5.7% per year over up to 25 years.
Before using it, check the eligibility criteria below. They determine whether the figures apply to you at all.
Eligibility criteria
You are eligible if all of the following apply.
You are a tax resident in France and you live in France. Owners domiciled abroad are not eligible.
Your property is in metropolitan France and worth at least 300,000 euros.
You want to borrow at least 100,000 euros, up to 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.
The property is held in your own name, not through an SCI.
The title is clear and registered. Any existing mortgage is listed for repayment or refinancing.
Rates, fees and duration
Rate 5.7% per year for an amortising loan, up to 25 years. Rate 6% per year for an interest-only structure (in fine), up to 15 years. Arrangement fee 8.5% of the amount borrowed, in both cases.
Worked examples
Property worth 300,000 euros, loan of 100,000 euros over 10 years. Monthly repayment 1,095 euros. Arrangement fee 8,500 euros, so you receive 91,500 euros. Loan-to-value 33%. Required household income: at least 4,000 euros per month.
Property worth 1,000,000 euros, loan of 200,000 euros over 25 years. Monthly repayment 1,252 euros. Arrangement fee 17,000 euros, so you receive 183,000 euros. Loan-to-value 20%. Required household income: at least 4,000 euros per month.
Property worth 1,000,000 euros, loan of 500,000 euros over 20 years. Monthly repayment 3,496 euros. Arrangement fee 42,500 euros, so you receive 457,500 euros. Loan-to-value 50%. Required household income: at least 10,488 euros per month, since income must be three times the repayment.
That last example shows why the income rule matters. A property worth a million euros does not, on its own, allow you to borrow half a million. The repayment has to be serviceable.
How a mortgage-backed loan works
The property serves as collateral, which allows higher amounts and longer durations than consumer credit. You keep full ownership throughout. The notary registers a mortgage lien as a guarantee, nothing more.
You choose between an amortising structure, with monthly instalments of principal and interest, and an interest-only structure, where you pay interest monthly and repay the principal at maturity.
Each loan is authenticated by a French notary, registered in the national land registry, and governed by mortgage law. Funds flow through notarial escrow. See mortgage-backed loan in France and safe equity release in France.
Using the simulator
Enter the market value of your property, the amount you wish to raise, and the term. The simulator displays an indicative monthly repayment and the fees.
These are preliminary figures. An adviser confirms them after independent valuation, compliance checks and notarial review. The valuation may come in below your estimate, which reduces the amount available.
What the funds can be used for
There is no obligation to justify the purpose, provided it is lawful. Owners commonly use a mortgage-backed loan to settle a tax liability, equalise an inheritance, fund a divorce settlement, finance renovation, provide working capital for a business, or bridge the purchase of a new property.
See get cash from property in France and need cash urgently in France.
If you live abroad, or your income does not qualify
A mortgage-backed loan requires French tax residency and sufficient income. If either condition is not met, this simulator does not apply to you.
If you are selling your French property, or intend to sell it, a deferred-price sale may apply instead. It is assessed on the property, not on your income. Your country of residence is not an obstacle, and it can be structured on a property held through an SCI.
See non-resident mortgage in France and the deferred-price sale simulator.
Points to anticipate
The main risk is affordability. This is why income is assessed alongside property value: a loan you cannot service is not a solution.
Early repayment triggers a standard penalty. A longer term lowers the monthly cost but increases the total interest paid over the life of the loan.
Timeline
File opening and eligibility check. Independent valuation and legal audit, around one week. Structuring and presentation to partner banks, one week. Notarial deed and signature, two to three weeks. Mortgage registration and release of funds.
Average total: eight to ten weeks. See how equity release works in France.
About PraxiFinance
PraxiFinance has specialised exclusively 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. See best equity release companies in France.
Call +33 1 85 09 70 40 to confirm your eligibility.
FAQ
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.
How much can I borrow?
Up to 70% of the property value, with a minimum of 100,000 euros. But the amount is also capped by your income: the monthly repayment cannot exceed one third of your household income.
Are the simulator results binding?
No. They are indicative and confirmed after valuation, compliance checks and notarial drafting.
What is the interest rate?
5.7% per year for an amortising loan, 6% per year for an interest-only structure.
What are the fees?
8.5% of the amount borrowed.
Can I use a property held through an SCI?
Not for a mortgage-backed loan. Properties held through an SCI are eligible for a deferred-price sale.
Can I repay early?
Yes, with a standard penalty specified in the notarial deed.
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