Buying in Monaco with a Mortgage: Conditions, Deposit and Costs
A large share of purchases in Monaco is made largely with equity, but a loan remains possible, and it affects both the timetable and the budget. Here is how property financing works in the Principality, what banks generally ask for, and the costs to add.
Financing is possible, but more restrictive than in France
The sums involved are high and banks are cautious. A loan can be obtained from Monaco banks, French banks or international institutions, each setting its own conditions depending on the borrower's profile, residence and the value of the property. The figures below are orders of magnitude drawn from varied sources: only a bank can give you a firm offer.
The usual conditions
The deposit required is significant: often at least 30% of the price, sometimes considerably more for a non-resident. The share financed generally sits between 45% and 70% of the property's value depending on the institution and the profile. The term is often shorter than in France, in the order of 5 to 20 years. A registered mortgage on the financed property is almost systematic, and some banks require you to open an account with them, sometimes with an accompanying deposit. Other security, for example assets held elsewhere, may be offered depending on the bank.
Costs specific to the loan
A loan adds costs separate from acquisition costs. The bank charges arrangement fees, in the order of 0.25% to 0.5% of the amount borrowed, and may ask for a valuation of the property, around €1,000 to €5,000. The loan deed and the mortgage registration carry duties and fees in the order of 1% to 1.5% of the amount borrowed depending on the source, which the notary prices precisely.
To illustrate, on a €2 million loan these items come to roughly €26,000 to €45,000: a calculation from the ranges above, not an offer. They add to acquisition costs, about 6.25% of the price for a resale property bought in a personal name or through a Monaco SCI, plus agency fees.
Securing the financing before committing
The order of the steps matters. The purchase offer comes with a deposit of about 10% of the price, held in escrow by the notary, and binds the buyer as soon as it is accepted. It is therefore better to obtain an agreement in principle from the bank before making an offer. If financing is not yet secured, a preliminary sale agreement can include a condition precedent for obtaining the loan, as we describe in our article on the steps of buying in Monaco.
Bank account and residency
If you plan to settle in Monaco, an account with a Monaco bank is needed anyway: the residency file requires proof of sufficient means with an institution in the Principality. It makes sense to coordinate the two processes, especially as the bank will also examine the origin of your funds.
Preparing your file
A few habits make the process easier. Compare several banks rather than just one, as conditions differ noticeably. Gather proof of income and assets, as well as the origin of funds. Decide on the purchase structure, personal name or SCI, before requesting the loan offer: it influences the file. And think in terms of an overall budget, including price, acquisition costs, agency fees and loan costs.
How we help
We are not a bank, but we help our buyers frame their overall budget before the first viewing and sequence financing, offer and signing in the right order, working with banks, notaries and lawyers. Preparing a purchase in Monaco with financing? Let's talk in confidence about your project.
The ranges presented are indicative and vary by institution and profile. This article does not constitute financial, legal or tax advice.
