French mortgages for buying off plan properties
Buying a property off plan is very common in France. Unlike in most countries, in France this process is highly regulated and structured in a way that buyers deposits are protected and developers are financially secure so that your property will be delivered as planned.
After reserving your property with a developer, the French mortgage will finance the off plan purchase. As the developer completes each stage of construction, the bank will release a portion of your mortgage to pay the stage payments. This continues until the property is delivered.
During the build phase, you will only pay interest on the portion of your mortgage that has been released.
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