Financing a second home in France
A holiday house, a bolt-hole: a second home is financed with an ordinary mortgage, whether you live in France or abroad. The bank usually asks for a slightly higher deposit than for a main home, and checks you can carry two properties. Here is the essential.
General information. This is not an offer of credit or personalised advice, and no rate is guaranteed. Yann Nachtrieb, registered mortgage broker (COBSP) and insurance broker (COA), and financial investment adviser (CIF), ORIAS no. 26009903.
Yes, it can be financed with a loan
You do not have to pay cash for a second home. French banks finance this kind of purchase with a mortgage, for residents and non-residents alike. The main difference is the deposit, often a little higher than for a main home, and the fact that the bank checks you can carry two properties at once if you already have a loan running.
The debt rule is the same: all your loan repayments, main home included, should stay around 35% of your income.
What if I let it part of the year?
Many second homes are let in season. Be aware, though: for a purchase classed as a second home, banks generally count little or none of the expected rental income when working out your borrowing capacity, because it is seen as uncertain. The financing therefore rests first on your own income.
If the project is really a rental investment, that follows a different logic, with part of the rent taken into account. We separate the two clearly from the start to build the right file.
Second home: the benchmarks
| Point | Typical benchmark |
|---|---|
| Financing | Ordinary mortgage |
| Deposit | Often a little higher |
| Two properties | The bank checks you can carry both |
| Rental income | Generally little or none counted |
| Non-resident | Higher deposit, as elsewhere |
General, indicative benchmarks that vary by bank and profile. No acceptance or rate is guaranteed.
Frequently asked questions
Do I need more deposit than for a main home?
Often a little more, as the bank sees the risk as slightly higher. For a non-resident, the deposit is in any case higher. It depends on the bank and the file.
Does seasonal rent count in my file?
Generally little or none, for a second home, as it is seen as uncertain. The financing rests mainly on your income. A true rental project follows a different logic.
Can a non-resident finance a second home?
Yes, and it is a common case, especially for UK buyers. The terms are those of a non-resident mortgage, with a larger deposit.
A holiday home in mind?
Book a free 45-minute call, in English. Tell me the project and your situation; we see whether the financing holds, and on what terms.