Borrower - expatriate: 3 essential points to check to avoid a loan refusal crédit immobilier

If you're French but living abroad, and you're planning to own a property in France, you'll need to take out a loan with a bank. 

So far, so simple.

However, like all borrowers, expatriates must take out insurance for any crédit immobilier loan, which is required by the lender. And it's at this stage that many borrowers living abroad run into difficulties. 

What are the most important points to check with your insurer if you are an expatriate?

• The insurance offered by the bank covers your country of residence.

In fact, the covers contracts offered by banks often only cover French or European residents and do not take into account the risks associated with your country of residence. 

• If you work with an insurer outside the bank, make sure that the proposed contract is irrevocable.

This means that if you change your lifestyle or move house during the term of your loan insurance contract, your rate cannot be increased and the terms of the contract remain the same.  

• Finally, ask your insurer beforehand if the proposed contract provides for additional premiums or exclusions from covers depending on the length of your stay or country of residence deemed to be at risk.

This is an extremely important point, as in some countries the surcharges applied can considerably increase the insurance premium, even doubling or tripling it. 

The increase in the amount of insurance can in turn cause another problem:refusal of your loan because the usury rate has been exceeded! 

The usury rate is a statutory rate above which a loan cannot be granted by the bank. In 2023, the usury rate continued to fall and became the main reason for refusal of crédit immobilier in France.

How can you lower your usury rate?

• Compete for a better (loan) interest rate
• Negotiate fees with your bank 
• Play on borrowers' loan-to-value ratios (50/50% or 70/30% instead of 100%)
• Lower loan insurance costs with policies tailored to your expatriate situation 

If you wish to be supported in the choice of the insurance contract, you can use a specialized broker such asValorama.

Contact one of our experts on +33 3 26 87 82 05

or request a quote online https://www.valorama.fr/devis-en-ligne/