Mortgage loan
Credit earmarked for financing real estate, purchase, construction or major works, repaid in installments over a long term, typically 15 to 25 years. It is governed by the Consumer Code: written offer, cooling-off period, guarantee and insurance. Its structure (term, rate, guarantee, insurance) drives both total cost and monthly payment.
Key points
- A mortgage loan is specifically tied to a property identified in the offer.
- The Consumer Code requires a written offer and a mandatory cooling-off period before acceptance.
- Typical term ranges from 15 to 25 years, directly influencing the monthly payment and total cost.
- Borrower's insurance and a guarantee (surety or mortgage) are conditions systematically required by banks.
Frequently asked questions
What are the main stages of a mortgage loan, from structuring to signing?
The journey begins with analyzing the project and borrower profile, then structuring and submitting the file to banks. After a conditional approval, the bank issues a formal loan offer. The borrower has a statutory cooling-off period before being able to accept. Once the offer is accepted, funds are released at the time of signing the authenticated deed before the notary.
Why does loan term matter so much in structuring a file?
Term acts on two opposing levers: lengthening the term reduces the monthly payment and may make the file acceptable from a debt-ratio perspective, but increases total interest cost. Conversely, a shorter term reduces total cost but raises the monthly payment. The broker arbitrates between these dimensions based on budget, the project type (primary residence vs. investment) and the borrower's tax strategy.
What is the difference between a mortgage loan and a consumer credit?
A mortgage loan is tied to a property, subject to specific Consumer Code rules (cooling-off period, FISE pre-contractual information) and secured by a real or personal guarantee. Consumer credit finances moveable goods or personal expenditure, with different amounts, terms and regulatory frameworks. The distinction has direct consequences for the broker's obligations and the nature of their registration.
In practice
For a primary residence purchase at €280,000 with €30,000 in deposit, a broker optimizes the structure by proposing 20 years rather than 25: the monthly payment increases slightly but the total credit cost falls by several thousand euros, which makes sense for a borrower with strong repayment capacity.
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr