The key idea
A purchase budget must cover the home and the costs of buying it while leaving you a cash reserve. Start with an affordable monthly payment, estimate the loan it could support, then add the savings you can actually contribute.
Start with your monthly budget
Before browsing listings, set out your regular income and spending. A repayment that looks manageable in isolation may leave too little room for transport, children or annual expenses.
For a purchase in France, compare today’s spending with ownership costs, including loan insurance, upkeep, building charges and property tax. ANIL provides a framework for this assessment.
Source : ANIL — Faire ses comptes pour devenir propriétaire (in French)
The repayment you are comfortable with and the financing a lender approves are separate assessments.
Include the whole cost of buying
Add acquisition costs, financing fees, works and moving expenses to the sale price. Check whether agency fees are already included so that you do not count them twice.
French acquisition costs vary with the property and location. Use an estimate for planning and obtain a property-specific figure from the notary. The figures below are illustrative assumptions, not a fee schedule.
Source : ANIL — Frais annexes (in French)
| Item | Budget |
|---|---|
| Property price, including agency fees | €220,000 |
| Estimated acquisition costs | €17,000 |
| Financing fees | €3,000 |
| Works and moving in | €10,000 |
| Total project cost | €250,000 |
Choose a deposit that leaves a reserve
Your available deposit is not necessarily your entire savings balance. Separate the money committed to the purchase from funds kept for known expenses and unexpected costs. The appropriate reserve depends on your circumstances.
In this example, the household has €45,000 and keeps €10,000 outside the project. The deposit is €35,000, leaving €215,000 to borrow against the €250,000 project cost. Do not add the retained reserve to the purchase cost a second time.
€250,000 total cost − €35,000 deposit = €215,000 to finance.
Test the loan and room for unexpected costs
An amortizing €215,000 loan over 20 years at an illustrative fixed nominal annual rate of 3.5% gives a monthly payment of approximately €1,247 before insurance and fees. This is a calculation assumption, not a statement about current market rates.
Add the actual insurance quote and compare the total with your monthly budget. A longer loan may reduce each payment while increasing total interest. Use the loan calculator to compare both effects.
Then repeat the budget with higher refurbishment costs or a temporary reduction in income. If it only works under perfect conditions, adjust the target price, timing or deposit before proceeding.
- Compare loan terms using consistent rate assumptions.
- Separate the loan repayment from the complete monthly housing cost.
- Have the lender and notary confirm financing and acquisition figures.
Before you take the next step
- I included fees and works without double counting.
- I kept a reserve outside my deposit.
- I tested repayments including insurance and ownership costs.
- I understand that a simulation is not loan approval.
Try your own numbers
Terms in this guide
Educational content. Examples are illustrative and simulations are not personalised advice.