The Profile

Buying in: Paris 8ème
Property price: €3,557,000
Mortgage amount: €2,861,600
Mortgage type: Repayment
Mortgage term: 20 years
Interest rate: 2.54% fixed
Loan-to-value: 80%

The Context

Our client had a very good profile. However it was a bit difficult because he had withdrawn less funds from his Self-Employed activity than he had the previous years.

French mortgages are calculated on a DEBT TO INCOME ratio which generally cannot exceed 30-33%. That means that the total of your monthly commitments (personal loans, car loans, student loans, mortgages or rent) cannot exceed more than 30-33% of your monthly income.

Our client’s debt ratio actually reached 40%.

Our Approach

Thanks to our panel of banks, we managed to get THE French bank that would allow a debt ratio to exceed the 33% limit and go up to 45% depending on the profile, all this without requiring Assets Under Management (or collateral). The client ended up with a 80% loan to value mortgage (2,861,600 €) for a fixed rate of 2.54% on a repayment basis over 20 years.

Cerise sur le gâteau, we negotiated the bank fees to… 0€!