Financing guide
Financing your purchase in Corsica
Borrowing capacity, monthly repayments, purchase costs, interest-free loans: your financing plan should be in place before your first viewing, never after you have fallen in love with a property. Here is the method we use with our buyers, along with calculators to work through it yourself in just a few minutes.
My borrowing capacity
Indicative estimate excluding borrower insurance and arrangement fees. Only your bank can approve financing.
The 35 % rule
Following recommendations from the Haut Conseil de stabilité financière, France's financial stability council, banks limit a borrower's repayments to 35 % of net income, including borrower insurance, over a maximum term of 25 years. This ceiling determines everything else: the monthly repayment, and therefore the loan amount and the property price you can afford.
Two genuinely effective options remain. First, the deposit: every euro you contribute adds to the amount you can borrow and improves the rate offered. Then insurance: choosing an external borrower insurance provider can often free up several tens of euros in monthly repayments, increasing your purchasing power.
Pay attention to disposable income: beyond the ratio, the bank checks how much remains available each month after the mortgage repayment. A high-income household may slightly exceed 35 %; a lower-income household will be kept below it.
The five stages of a financing plan
In this order: each stage determines the next.
1. Calculate your borrowing capacity
Banks cap repayments at 35 % of net income, including insurance, over a maximum of 25 years. It is this ceiling, not a property's asking price, that defines the scope of your search.
Calculate my borrowing capacity2. Calculate the monthly repayment
Loan amount, term, interest rate and deposit: four sliders are all you need to calculate the monthly repayment and total borrowing cost. At the same interest rate, extending the term from 20 to 25 years reduces the monthly repayment but significantly increases the interest paid.
Mortgage calculator3. Add the purchase costs
Around 7 to 8 % of the price for a resale property, 2 to 3 % for a new-build. Few banks finance these costs: include them in your deposit budget before making an offer on a property.
Calculate notary fees4. Check your eligibility for financial assistance
Zero-interest loan, social home-ownership loan, Action Logement employer-backed loan: combined, they can cover a significant share of the financing for a main residence.
Understanding the interest-free loan (PTZ)5. Have your financing plan approved before viewing
Having proof of finance changes how a seller views an offer. For sought-after properties on the Corsican coast, it is often what separates two buyers offering the same price.
Speak to a sales negotiatorHome-buying assistance
Interest-free loans in Corsica
The PTZ is an interest-free loan, taken out alongside a main mortgage, for first-time buyers. Its terms change regularly: the principles below are stable, but the limits should be confirmed with your bank.
For main residences only
The interest-free PTZ loan helps fund the purchase of a main residence by a first-time buyer, meaning a household that has not owned its main residence during the previous two years.
Subject to income limits
Eligibility and the amount depend on household income, the number of people in the household and the property's zone. Corsica falls mainly within zones B1, B2 and C, depending on the commune.
A supplementary loan, never the sole source of borrowing
The PTZ covers only part of the purchase and is taken out alongside a main repayment mortgage. It usually includes a period during which repayments are deferred.
New-build, existing property requiring works, social housing
Depending on the version of the scheme, the interest-free loan (PTZ) is intended for new homes, existing homes requiring a substantial proportion of renovation work, or social housing purchased by its occupant. The exact conditions change each year: ask your bank or mortgage broker to confirm them.
Financial assistance never replaces the basic calculations: affordable monthly repayments, funds set aside for purchase costs and enough left over for living expenses.
Discuss your situation with a property negotiatorBudget by commune
What your budget buys, commune by commune
With the same borrowing capacity, the floor area you can afford can vary threefold between inland and coastal locations. Observed median prices, to compare with your mortgage calculation.
Frequently asked questions about financing
How much can I borrow to buy in Corsica?
Banks apply a maximum debt-to-income ratio of 35 % of net income, including mortgage insurance, over a term that generally does not exceed 25 years. With €4 000 in net monthly income and no outstanding loans, the maximum monthly repayment is around €1 400, corresponding to borrowing of approximately €250 000 to €280 000, depending on the interest rate applied.
How much deposit do you need to buy property in Corsica?
Allow at least enough to cover purchase costs, around 8 % of the price for an existing property. In practice, most banks require a deposit of 10 to 20 % of the price, and more for a second home or a buy-to-let investment.
Can notary fees be included in the mortgage?
It is possible through so-called 110 % financing, but this remains rare and is reserved for borrowers with very strong profiles, generally young professionals with substantial saving capacity. The standard approach remains a personal contribution covering the purchase costs.
Is the interest-free PTZ loan available for a purchase in Corsica?
Yes, under the same conditions as elsewhere in France: a first-time purchase of a main residence, income limits, and eligibility of the property according to its type and zone. The amount varies with the commune's zone and household composition.
Can you finance a second home in Corsica?
Yes, but the conditions are more demanding: a larger deposit, no public assistance such as the PTZ interest-free loan, and mortgage repayments taken into account when calculating the debt-to-income ratio. Projected holiday rental income is only partially taken into account, if at all.
Is it better to use your bank or a mortgage broker?
The two complement each other. The bank receiving your income has the most detailed picture of your profile; the broker compares several lenders and often negotiates mortgage insurance, where savings can run into thousands of euros over the term.
How long does it take to get a mortgage?
Generally allow six to eight weeks between submitting a complete application and the loan offer being issued. The preliminary sale agreement includes a condition making the sale subject to obtaining a loan, usually within 45 to 60 days.
Do you need an approved financing plan before viewing?
It is strongly recommended. In high-demand areas of Corse-du-Sud and Haute-Corse, an offer backed by a financing certificate takes priority over an equivalent offer without bank approval.