Private banking in France
Private banking rates for French can be as low as 1.8% fixed for 5 years or 1% on a variable basis depending on the size of your relationship with the bank.
Private banks generally use the carrot of a mortgage on a French property as a way to gain new relationships. For a mortgage on the property the minimum assets to be transferred to the bank will be 1M.
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|Pure Rate||APRC |
|1.50%||2.21%||20yrs||70% (100% LTV with 30% collateral)||Variable rate|
|1.55%||2.13%||20yrs||70% (100% LTV with 30% collateral to be held in €)||Rate fixed for the term|
|1.85%||2.41%||20yrs||85%||Fixed for 3 months at 1.85% then Euribor 3 months +2.15%|
|2.20%||2.78%||20yrs||70%||Rate fixed for the term|
|2.55%||3.10%||25yrs||85%||Rate fixed for the term|
|Pure Rate||APRC |
|1.87%||2.58%||5 yrs||100% (min AUM of €1m)||Fixed rate for the term|
|2.30%||2.96%||14 yrs||75%||Tracker 3 month Euribor + 2.60%|
|2.59%||3.11%||10 yrs||100% (min AUM of €1m)||Rate fixed for the term|
|2.55%||3.35%||7 yrs||75%||Rate fixed for the term|
Current Private banking rates in France
These structures are available for straight forward purchases, to refinance your existing mortgage or to release equity from your property in France.
Using these kinds of structures for new build or development work will require increased collateral until the property is complete.
Private Banking – Why people us this option
Our clients choose to take a loan from a Private Bank when they do not wish to liquidate the investments they have in order to buy the property. Our clients see the value of the loan in terms of the low interest rate and how it can be used to optimise the purchase from both and income tax and French Wealth tax perspective. Some might say it is a version of having your cake, eating it too whilst losing some weight.
Transaction of a month
2.45% over a fixed rate of 25 years
€640,000 apartment Courchevel,
French Alps – March 2017
It was great to see fixed rates back to these historic lows. A fixed rate for 20 years at 3.25% creates a lot of value over the long term. This was a 70% loan on a leaseback property in Les Menuires in the Three Valleys priced at €330,000 excluding VAT. The property has a guaranteed rental income of 3.3% and a week in high, medium and low season.
French Mortgage Guide
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