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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. 

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LIVING IN FRANCE

MAP: The 20 cheapest French towns and cities to live in

The cost of living is a hot topic in France and across Europe right now - so where are the cheapest places to live?

MAP: The 20 cheapest French towns and cities to live in

At a time when purchasing power has never been so central to French people’s concerns, French daily Le Parisien has compiled a list of towns and cities where your money will go the furthest.

In order to produce this ranking, Le Parisien compiled the average salary in each location and then looked at the price of the average supermarket shop, the cost of transport (fuel as well as public transport), property prices (to buy or rent), property tax rates and the cost of a cinema ticket. 

READ ALSO Food, fuel and transport: Which prices will rise in France in 2023?

And it turns out smaller is better.

Of the 96 towns and cities tested, Niort, in the département of Deux-Sèvres in south west France (population around 60,000) came top,

Laval, in Mayenne (population around 50,000) was third; Saint-Brieuc, in the Brittany département of Côtes-d’Armor (population around 45,000), was 8th, and Rodez, down in the southern département of Aveyron (pop: c 25,000) was 10th.

The 20 most wallet-friendly towns in France are:

  1. Niort
  2. Châteauroux
  3. Laval
  4. Nevers
  5. Belfort
  6. Chaumont
  7. Épinal
  8. Saint-Brieuc
  9. Saint-Étienne
  10. Rodez
  11. Châlons-en-Champagne
  12. Quimper
  13. Arras
  14. Foix
  15. Poitiers
  16. Le Mans
  17. Colmar
  18. Montauban
  19. Bourg-en-Bresse
  20. Nantes

READ ALSO The 20 small towns most popular with house-hunters in France

Niort gains, the study found, in part because it has offered free local public transport since 2017 - a policy that other towns that rank well also implement, including second-placed Châteauroux (Indre), Bourg-en-Bresse (Ain, 24th) and Gap (Hautes-Alpes, 63rd).

For various reasons, including infrastructure, offering free public transport that meets higher levels of demand in larger cities is unviable, the report said. 

In fact, France’s larger cities are noticeably low in Le Parisien’s rankings. Lyon stumbled on to the list in 58th, Paris in 77th, Marseille 84th, and Montpellier 90th. Nantes, coming in 20th, is the only ‘large city’ representative in the top 20.

READ ALSO Wild boar, fast internet and kindly neighbours – why small-town France has the best of all worlds

The report stated that, despite salaries being little higher than average in larger conurbations, people also pay more for shopping, public transport, movie tickets, and housing.

The survey found that, on the whole, your euro goes further in the west of the country - where supermarkets are cheaper, and towns aren’t too congested, while the cost of a tank of fuel is lower, as are - researchers discovered - the more abstract costs, such as insurance, for the same level of service as elsewhere.

READ ALSO OPINION: An inflation ‘tsunami’ is about to hit France

Eastern France, the study found, benefited from relatively cheap property prices - offering more bang for a house-buying buck than the expensive ‘coastal bounce’-affected south or the Ile-de-France region, which orbits the cost-of-living singularity that is Paris.

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