SHARE
COPY LINK
For members

PROPERTY

Courtier: Should you hire a broker when buying property in France?

If you're researching the French property market, you might have come across mentions of 'courtiers' - here's what they do and whether they are necessary.

Courtier: Should you hire a broker when buying property in France?
(Photo by FRED TANNEAU / AFP)

The French ‘courtier‘ is usually translated as a broker, and the Notaires Association describes their role like this: “the broker is a true intermediary in banking operations. His/her role is to negotiate the best rates for you, but not only that: they will also find the most advantageous financing conditions for the realisation of your project.”

Essentially they act as an intermediary between you and the banks, so they’re only required if you need a mortgage or a loan in order to buy your French property. 

Their job is to research the best deals for you and then to help you put together your application and ensure that all your paperwork is correct – unlike the notaire, instructing a courtier is not a required part of the process, so the decision on whether to instruct one is up to you. 

So is it worth it?

Among French buyers, around 30 percent of mortgages are obtained using the services of a courtier, and this rises to 60 percent among young, first-time buyers, who generally find it harder to access credit.

Some of things to consider are your level of French and confidence in negotiating French bureaucracy, your financial situation (since French mortgage lenders tend to be stricter than those in the UK or US) and whether you currently live in France or not (since there are extra hoops to jump through for overseas buyers).

READ ALSO Is now a good time to buy a home in France?

“Things have changed,” Trevor Leggett, group president of Leggett International estate agents, told The Local. “It’s now more important than ever to work closely with a reputable broker.

“In France it is all paper-based, very old-school and extremely bureaucratic, a different world entirely to the UK. Preparing the client “dossier” so that it will be accepted is an art form.”

READ ALSO MAP: Where in France can you buy property for less than €100k?

He advised non-resident international clients, particularly, who may not be au fait with the French system to seek the help of a broker who knows the ropes.

“The question is no longer really about savings,” he said. “It is about finding a bank that can actually lend to the client profile, interests rate are secondary. 

“It occasionally happens that one bank can be played off against another, or to shop around, but it’s a rare event nowadays.”

READ ALSO Revealed: The ‘hidden’ extra costs when buying property in France

And he had no hesitation in recommending that prospective buyers find a broker to sort out the financing.

“The lending market has tightened for international buyers and a good one is worth their weight in gold,” he said.

READ ALSO EXPLAINED: Time-frame for buying and selling property in France

In France, you make an offer on a property and then you begin the mortgage process (while in the UK it’s the other way round) so problems in getting your mortgage approved could lead to you losing your dream property.

“[Using a courtier] can be the difference between buying and not,” added Trevor.

“It’s not just any possible language barrier – but understanding the process and the different players in the market.”

How much?

The cost of hiring a courtier is borne by the buyer – but how much do they charge?

The courtier usually charges a percentage of the total mortgage amount – fees must be fixed in advance and are only payable once your mortgage application has been approved. 

Fees vary between different areas and different businesses, but the average fee is €2,000, which amounts to around one percent of the purchase price.

Many brokers set a minimum amount – around €1,500 – for smaller loans, and take a percentage of larger loans, so how much you pay depends on your property budget. 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

MONEY

How France’s bid to tackle ‘wild’ budget deficit could impact you

With France's budget deficit rapidly rising and described as 'wild' by one economist, the government is facing the necessity of painful budget cuts. Here are the services likely to be targeted and how that will affect daily life in France.

How France's bid to tackle 'wild' budget deficit could impact you

On Tuesday it was revealed that France’s budget deficit is now €154 billion – or 5.5 percent of GDP and set to rise even further over the next two years unless action is taken.

Both president Emmanuel Macron and his finance minister Bruno Le Maire have ruled out tax rises, and say that the money can be found through cuts to state spending.

OPINION France has been in denial for decades about its ‘magic money tree’ spending

Le Maire will present a package of cuts to ministers of April 17th, entitled the programme de stabilité (PSTAB).

Here’s what we know so far about the proposed cuts;

Unemployment benefits 

France’s generous unemployment benefit system has already seen several reforms in recent years to cut both the amount of money given and the length of time that people can stay on the maximum rate. This year saw further tinkering, abolishing the allocation spécifique de solidarité (ASS) allowance for some job-seekers.

But there may be further cuts to come, especially to how long people can claim the benefit for.

Finance minister Bruno Le Maire has been pushing for a change, saying: “We need to reduce the length of the benefit period to encourage people to return to work.”

Training budget

French employees benefit from a handy little thing called the Compte personnel de formation (CPF) which allocated up to €800 a year for professional development and training programmes (which, for foreigners, can include French classes). This has already been cut, with employees now having to contribute 10 percent of the cost of the training.

Health costs 

The out-of-pocket costs of a medical appointment have already been doubled from 50 cents to €1 and other aspects of the health budget are being examined closely.

Le Maire in an interview with RTL ruled out any changes to payments for people with long-term medical conditions, but added that “people who are in good health and use medicines or have a lot of medical tests should probably contribute more”.

READ MORE: Why medical costs are rising in France in 2024

Sick leave 

The system of arrêt de travail, or taking sick leave from work is being touted as an area where savings could be made, with proposed cuts to the rate of sick pay given, as well as cuts to daily allowances for people with long-term medical conditions. 

French media is reporting that the idea of making certain medical reimbursements means tested has already been rejected.

Patient transport 

The cost of patient transport services – in which patients can obtain a prescription for a free or discounted taxi ride to non-emergency medical appointments – has risen sharply in recent years and is now considered a prime target for cuts.

A limited reform, linked to the reimbursement level given to taxi drivers, has already provoked months of protests from taxi drivers, including blockades at Toulouse and Bordeaux airports.

Local government and state bodies

Local governments and state-funded bodies will also be asked to make savings, Le Maire has said, saying that all branches of government need to “carefully examine their finances”.

He also said that he will be writing to state-funded organisations such as the Centre national du cinéma and Business France asking them to prepare budget savings plans.

Strikes and protests

An indirect effect of any proposed budget cuts on daily life in France is that some of these measures are considered controversial and are likely to result in strikes and/or protests.

Changes to the system of unemployment benefits during Macron’s first term as president provoked widespread protests and any significant cuts would be likely to trigger union action up to and including strikes.

SHOW COMMENTS