How to Finance: €510,000 property in Paris

paris

The Profile

Buying in: paris 11ème
Property price:
€510,000
Mortgage amount: €408,000
Mortgage type: Repayment
Mortgage term: 15 years
Interest rate: 1.80% fixed for the duration
Loan-to-value: 80%

The Context

The client wanted the highest LTV possible at the best possible rate as she was limited with her personal contribution since she had just paid off the mortgage on another secondary residence.      

The bank accepted to tick all of her boxes,  however it did  not accept to finance the real estate agents fees. These must be paid from the client’s personal funds.     

Our Approach

In order to reduce the deposit at its maximum, we asked the real estate agent and the vendor if we could re-write the compromis de vente and add the real estate agent fees to the purchase price. Though it increases a little bit the notary fees / mortgage tax and the amount of interest paid over 15 years (by a few thousands), it allowed the client to keep about 20,000 € of her personal funds at the moment of the purchase, funds she could allocate to actually decorate the property.

The client was very pleased by the solution as we answered her short term issue. The extra interest paid could be solved by repaying the mortgage early later on.