Introduction
Buying together doubles your borrowing capacity. However, buying together from abroad also doubles the documents required, the legal responsibilities, and the questions to anticipate. International co-borrowing allows ambitious real estate projects in France to materialize, but it binds each signatory well beyond a simple "half" of the mortgage.
Contrary to popular belief, borrowing with your spouse, a parent, or a friend does not mean each party only repays their share. The solidarity clause in the contract makes you responsible for the entire debt if the other co-borrower defaults. This rule takes on particular significance when managing everything from Bangkok, Montreal, or Abu Dhabi.
This guide details the operation of co-borrowing for expatriates, specific banking conditions, distribution of insurance shares, the impact of marital status, and solutions in case of separation or unforeseen events.
Operation of co-borrowing for expatriates
Being a co-borrower means signing the mortgage contract jointly with one or more other persons. Each signatory is legally committed to repaying the entire mortgage, not just their "share." This distinction is crucial for understanding your responsibilities.
Co-borrower vs co-owner: a common confusion
The co-borrower appears on the mortgage contract and assumes financial responsibility with the bank. The co-owner appears on the deed of sale and becomes the property's owner. These two statuses may coincide but not always.
According to article 2103-2 of the Civil Code, the borrowed sum must be intended for acquisition, but nothing requires the co-borrower to become the owner. You can, therefore, borrow together to finance the purchase for a single acquirer, for example, to help a relative increase their borrowing capacity.
💡 Remember: Banks rarely accept this arrangement for expatriates. They prefer situations where co-borrowers = co-owners to secure their guarantee on the financed property.
The principle of contractual solidarity
Solidarity among co-borrowers is systematically included in real estate mortgage contracts. According to articles 1310 to 1319 of the Civil Code, this solidarity means the bank can demand from any co-borrower the repayment of the entire installments, not just their theoretical share.
In practice: if you borrow with your spouse and they stop paying their part, you will need to cover 100% of the repayments. The bank does not first seek to recover from the defaulting co-borrower. This solidarity persists even in the case of separation, divorce, or moving to another country.
Who can be a co-borrower from abroad?
You can borrow with:
Your married, partnered, or common-law spouse
A family member (parent, sibling, adult child)
A friend or partner for a rental investment
Banks accept up to 4 co-borrowers maximum, but as the number increases, the file becomes more complex to analyze. For expatriates, the most common configuration remains a couple (2 co-borrowers) because it simplifies document management and reassures lending institutions.
Specific banking conditions for international co-borrowing
Co-borrowing multiplies the requirements: each co-borrower must provide a complete file, as if borrowing alone. This administrative constraint adds to the already strict criteria applied to non-residents.
Documents required for each co-borrower
French banks require the following supporting documents for each mortgage signatory:
Identity and personal situation:
Valid passport or identity card
Family record book
Marriage contract or PACS agreement (if applicable)
Proof of residence in the country of domicile (less than 3 months old)
Professional and income situation:
Employment contract
Pay stubs for the last 12 months
Tax assessment from the country of residence or tax return
Financial situation:
Bank statements for the last 3 to 6 months (French AND foreign accounts)
Proof of savings and existing assets
Amortization schedules of current mortgages
⚠️ Attention: If one of the co-borrowers resides in a country requiring certified translations (China, Japan, Arab-speaking countries), instruction delays can extend by an additional 4 to 8 weeks.
Personal contribution and cumulative borrowing capacity
The main advantage of co-borrowing is the combination of income and borrowing capacity. Banks calculate the overall debt ratio considering the income of both co-borrowers, allowing for borrowing a larger amount than a sole borrower would obtain.
Personal contribution: While traditional banks often require 30 to 40% of the acquisition price for non-residents, Invexa negotiates conditions with its banking partners comparable to those for French residents: between 10% and 20%. This contribution covers notary fees (about 7-8% on older properties) and part of the acquisition price.
The maximum debt ratio of 35% applies to combined incomes. If one co-borrower earns €4,000/month and the other €3,000/month, the maximum allowed monthly payment will be €2,450 (35% of €7,000).
✅ Good to know: Some banks adjust foreign incomes according to the country of residence and the stability of the local currency. A $8,000 salary in New York may be valued differently than an equivalent salary in Bangkok.
Impact of the country of residence of each co-borrower
When both co-borrowers reside in the same country, banks analyze the file as a standard expatriate profile. The situation becomes more complex if co-borrowers live in two different countries.
Example: you work in Singapore while your co-borrower is based in London. Banks will need to analyze two geographical contexts, two labor legislations, and two distinct tax systems. This complexity can lead to refusals or less favorable conditions.
The countries considered "favorable" by French banks include the European Union, Switzerland, North America, Singapore, Hong Kong, and the United Arab Emirates. To understand all the conditions for obtaining a real estate mortgage for expatriates, consult our complete guide on the subject.
Distribution of responsibilities and borrower insurance
Borrower insurance takes on a strategic dimension in expatriate co-borrowing. It determines who pays what in case of death, disability, or inability to work of one of the co-borrowers.
Insurance quota: how to distribute it intelligently
The insurance quota represents the percentage of the borrowed capital covered by the insurance for each co-borrower. The total can exceed 100%: you can insure each at 100% (total quota of 200%), or distribute it differently according to your profiles and incomes.
Common distributions:
100% + 100% (200% total) → Maximum coverage. In case of the death of one co-borrower, the mortgage is fully repaid. Recommended if incomes are balanced.
70% + 30% → Coverage adapted to unequal incomes. The co-borrower at 70% finances the majority, as the surviving co-borrower continues to pay their share (30%).
50% + 50% → Cost-saving, but high risk. If one dies, the surviving co-borrower must repay 50% of the remaining capital.
💡 Remember: For expatriates, 200% insurance (100% each) is strongly recommended. The premium surcharges associated with the country of residence are often lower than the financial risk assumed by the survivor with partial coverage. Check out our guide on expatriate borrower insurance to optimize your coverage.
Solidarity clause and practical consequences
The solidarity clause in the contract means that if one co-borrower stops paying, the other must immediately compensate. The bank does not wait, does not negotiate: it deducts from the solvent co-borrower's accounts or initiates collection procedures against both.
In case of prolonged non-payment, the consequences include:
Bank account freeze
Registration in the FICP (File of Incidents of repayment of Credits to Individuals)
Garnishment of wages through judicial procedure
Real estate seizure as a last resort
From abroad, managing these arrears becomes even more complex: time zone differences to reach the bank, urgent international transfers, difficulty getting payment delays. Anticipate these situations by setting up a security fund equivalent to 6 months of installments.
Mixed configuration: 1 expatriate + 1 French resident
This hybrid situation simplifies certain processes. The French resident co-borrower reassures the bank as it maintains local contact and can manage administrative emergencies. The file often benefits from conditions between a 100% expatriate file and a 100% resident file.
However, caution: solidarity applies in both directions. If the expatriate stops paying (job loss, emergency repatriation), the French resident will have to assume the installments alone, even if they earn less or if the purchase was mainly aimed at the expatriate.
Marital status and legal regimes
Your marital status directly impacts mortgage solidarity and the ownership of the acquired property. French law distinguishes several scenarios with different consequences.
Married couples: automatic solidarity
The article 220 of the Civil Code establishes automatic solidarity between spouses, even if only one signs the mortgage. In practice, banks almost always require both spouses to co-sign for a real estate purchase, except under a separate property regime.
Marital regimes and their impacts:
Community of property with reduced acquisitions (default regime) → The purchased property automatically becomes joint, owned 50/50, regardless of each person's contribution.
Separation of property → Each spouse retains ownership of their income and acquisitions. The property's distribution must be specified in the notarial deed (e.g., 60/40 according to contributions).
Universal community → All present and future assets are joint. Simplifies transmission but may complicate some patrimonial setups.
PACS and common law: different rules
For PACS couples, the rule depends on the date of signing the PACS:
PACS signed after December 31, 2006 → Separation of property regime by default. Each remains the owner according to their share defined in the deed.
PACS signed before 2007 → Automatic joint ownership 50/50, unless otherwise stipulated.
Common-law couples do not benefit from any automatic solidarity. Mortgage solidarity only applies if explicitly stated in the contract. Property ownership is managed in joint ownership: each acquirer holds a share proportional to their contribution or according to an agreed distribution.
Joint ownership vs SCI: structuring smartly
Joint ownership is the default regime when several people buy together. Simple to establish, it has limits for management (unanimous decisions) and transmission (high inheritance duties).
The Real Estate Civil Society (SCI) offers a structured alternative, particularly suitable for expatriates. It allows the separation of ownership of shares from property management, facilitates gradual transmission, and optimizes taxation according to patrimonial goals. Discover how to create an SCI as an expatriate to secure your investment.
Risk management and solutions in case of separation
Geographical distance complicates managing conflict situations. Anticipating scenarios of rupture or unforeseen events avoids costly administrative and financial blockages.
Release from solidarity: a complex procedure
Release from solidarity allows the removal of a co-borrower from the mortgage contract, but it requires the bank's consent, which is never guaranteed. According to articles 1310 to 1319 of the Civil Code, solidarity persists until full repayment, except for contractual modification accepted by the creditor.
Conditions for bank acceptance:
The remaining co-borrower must demonstrate their ability to repay alone (sufficient income, debt ratio < 35%)
An additional guarantee may be required (mortgage, life insurance pledge, third party guarantee)
The exiting co-borrower may need to provide financial compensation
From abroad, this procedure requires:
Sending a registered letter with acknowledgment of receipt to the bank
Providing updated documents for the remaining co-borrower
Signing an amendment to the mortgage contract, often by notarial proxy
⚠️ Attention: Timelines range from 2 to 6 months. The bank may refuse if guarantees are insufficient, even in cases of divorce or official separation.
Buyout of undivided interest: who keeps the property?
The buyout of undivided interest involves buying out the departing co-borrower's and co-owner's share. This operation often requires new financing to free up the necessary cash flow.
Example with numbers:
Property purchased for €300,000, remaining capital due of €200,000, current value of €320,000.
Departing party's share: 50% of €320,000 = €160,000
Buyout amount: €160,000 - (50% of €200,000 repaid by insurance or the acquirer) = €60,000 minimum to pay + refinancing of their share of the remaining mortgage.
Banks analyze this request as a new mortgage. The remaining co-borrower must prove their increased borrowing capacity, which can be difficult from abroad if their income is in foreign currency or if their employment contract has changed.
Sale of the property: last resort solution
Sale allows the mortgage to be completely settled and ends the solidarity. The sale proceeds refund the remaining capital due, any early repayment penalties, then the balance is distributed among the co-owners according to their shares.
Special cases to anticipate:
Property value depreciation → If the property sells for less than the remaining capital, co-borrowers must cover the difference proportionally.
Challenging market → The property may remain unsold for an extended period, during which installments continue. Plan for a 6 to 18-month delay depending on the local market.
Sale costs → Expect 7 to 10% of the sale price (agency commission, inspections).
✅ Good to know: Some mortgages apply early repayment penalties (IRA) limited to 6 months of interest or 3% of the remaining capital. Check your mortgage before initiating a sale.
Conclusion
International co-borrowing offers the opportunity to realize your real estate project in France by pooling borrowing capacities. Two essential points to remember: solidarity binds each party to the entire debt (not just your "share"), and each co-borrower must provide a complete file in accordance with French banking requirements.
Intelligent distribution of insurance quotas and anticipation of separation or unforeseen scenarios secure your investment. Depending on your marital status and patrimonial objectives, legal structures like SCI can optimize management and transmission.
At Invexa, we assist expatriates in structuring their co-borrowing files by negotiating contribution conditions comparable to those of French residents (10 to 20%) and coordinating all parties from your country of residence. Our experts analyze your specific situation to identify the best financing and protection strategies.
Realize your real estate project smoothly, even from a distance: contact our Invexa advisors for a personalized study of your international co-borrowing file.
