A VEFA is a purchase off-plan: you buy from a developer before the home is finished and pay in stages as construction progresses. The bank releases the loan in the same stages, and repayments can be deferred until completion, which allows a term of up to 27 years. Purchase costs are lower than on an existing home, at 2–3% of the price. The developer must provide a completion guarantee.
What buying off-plan means
VEFA stands for vente en l'état futur d'achèvement, a sale of a home still to be built or finished. You usually sign a reservation contract with the developer first, then the deed of sale before a notaire. You own the land share and the building as it goes up, and you take possession at completion.
Lenders that accept non-residents finance new builds on the same basis as existing homes: 70–80% for strong files from the UK, Ireland, the EU and Switzerland, and 50–70% for buyers living elsewhere.
Paying in stages
The price is paid in instalments tied to construction milestones, within a schedule set by law. The developer calls each payment when a stage is reached, and the bank releases that part of the loan directly.
Until the final release, you only pay interest and insurance on the sums drawn so far. Your deposit is usually used first, before the bank releases any funds. Ask the developer for the payment schedule early, so the broker can show the bank when each release falls.
Deferred repayment and the 27-year maximum
The HCSF rules cap French mortgages at 25 years. For a new build, the cap rises to 27 years when repayments of capital start after a deferral of up to two years, which covers the construction period.
The deferral does not lift the 35% ceiling. During construction, a buyer who still pays rent or another mortgage carries both costs at once, and the bank counts them. If you plan to let the home, rent only starts after completion. Ask the broker to show you the monthly cost during construction and after it, side by side.
Lower purchase costs
Purchase costs on a new build are about 2–3% of the price, against 7–8.5% on an existing home, because the transfer taxes are lower. They are still paid from your own funds. The bank's guarantee, typically 1–2% of the loan, comes on top.
The completion guarantee
The developer must provide a financial completion guarantee (garantie financière d'achèvement), issued by a bank or insurer, which pays for the building to be finished if the developer fails. The notaire checks it before the deed is signed, and your lender will want to see it too.
Check the expected completion date in the contract and allow for delays when you plan currency transfers. A forward contract through our currency partner can fix the rate for each stage payment. Start with the eligibility check to see which lenders will finance your new build.
Questions
Can non-residents get a mortgage for an off-plan property in France?
Yes. Lenders that accept non-residents finance VEFA purchases, releasing the loan in stages as construction progresses.
What is the maximum term for a new-build mortgage?
Up to 27 years when capital repayments are deferred for up to two years during construction. Otherwise the 25-year limit applies.
Are notary fees lower on a new build?
Yes. Purchase costs on a new build are about 2–3% of the price, against 7–8.5% on an existing home.