Introduction
Buying jointly doubles your borrowing capacity. Buying jointly from abroad also doubles the documents required, legal responsibilities, and questions to anticipate. International co-borrowing enables ambitious real estate projects in France, but it commits each signatory to much more than just a "half" of the mortgage.
Contrary to common belief, borrowing with your spouse, a parent, or a friend does not mean that each only repays their share. The solidarity embedded in the contract makes you responsible for the entire debt if the other co-borrower defaults. This rule takes on a particular dimension when managing everything from Bangkok, Montreal, or Abu Dhabi.
This guide details the workings of co-borrowing for expatriates, specific banking conditions, distribution of insurance shares, the impact of marital status, and solutions in the event of separation or unforeseen circumstances.
The Functioning of Co-Borrowing for Expatriates
Being a co-borrower means jointly signing the mortgage contract with one or more other people. Each signatory is legally bound to repay the entire mortgage, not just their "share." This distinction is crucial to understand your responsibilities.
Co-borrower vs. Co-acquirer: A Common Confusion
The co-borrower appears on the mortgage contract and is financially committed to the bank. The co-acquirer is listed on the title deed and becomes the owner of the property. These statuses can coincide, but not always.
According to article 2103-2 of the Civil Code, the borrowed amount must be intended for acquisition, but nothing requires the co-borrower to become the owner. You can borrow jointly to finance the purchase for a single acquirer, for example, to help a close one increase their borrowing capacity.
💡 Keep in Mind: Banks rarely accept this arrangement for expatriates. They prefer scenarios where co-borrowers = co-acquirers to secure their collateral on the financed property.
The Principle of Contractual Solidarity
Solidarity among co-borrowers is systematically embedded in mortgage contracts. According to articles 1310 to 1319 of the Civil Code, this solidarity means that the bank can demand repayment of the full monthly payments from any co-borrower, not just their theoretical share.
In practical terms: if you borrow with your spouse and they stop paying their share, you must assume 100% of the repayments. The bank does not have to attempt collection first from the defaulting co-borrower. This solidarity persists even in the event of a separation, divorce, or relocation to another country.
Who Can Be a Co-Borrower from Abroad?
You can borrow with:
Your spouse married, in a civil partnership, or in a common-law relationship
A family member (parent, brother/sister, adult child)
A friend or associate for a rental investment
Banks accept up to 4 co-borrowers maximum, but the more the number increases, the more complex the file becomes to analyze. For expatriates, the most common configuration remains the couple (2 co-borrowers), as it simplifies document management and reassures lending institutions.
Specific Banking Conditions for International Co-Borrowing
Co-borrowing multiplies 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 signatory of the mortgage:
Identity and Personal Status:
Valid passport or ID card
Family record book
Marriage contract or civil partnership agreement (if applicable)
Proof of residence in the country of residence (less than 3 months old)
Professional Situation and Income:
Employment contract
Pay slips from the last 12 months
Tax notice from the country of residence or tax return
Financial Situation:
Bank statements from the last 3 to 6 months (French and foreign accounts)
Proof of existing savings and assets
Amortization schedules for ongoing mortgages
⚠️ Note: If one of the co-borrowers resides in a country requiring certified translations (China, Japan, Arabic-speaking countries), processing times may extend by 4 to 8 additional weeks.
Personal Contribution and Combined Borrowing Capacity
The main advantage of co-borrowing is the addition of income and borrowing capabilities. Banks calculate the overall debt ratio by considering the income of both co-borrowers, allowing to borrow an amount higher than a single borrower would.
Personal contribution: While traditional banks often require 30 to 40% of the acquisition price for non-residents, Invexa negotiates with its banking partners conditions comparable to French residents: between 10% and 20%. This contribution covers notary fees (about 7-8% in the old) and part of the acquisition price.
The maximum debt-to-income ratio of 35% applies to combined income. If one co-borrower earns €4,000/month and the other €3,000/month, the maximum authorized monthly payment will be €2,450 (35% of €7,000).
✅ Good to Know: Some banks weigh foreign income according to the country of residence and the stability of the local currency. A salary of 8,000 USD in New York may be valued differently than an equivalent salary in Bangkok.
Impact of Each Co-Borrower's Country of Residence
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 have to analyze two geographical contexts, two labor laws, and two distinct tax systems. This complexity can lead to refusals or less favorable conditions.
Countries considered "favorable" by French banks include the European Union, Switzerland, North America, Singapore, Hong Kong, and the United Arab Emirates. To understand all conditions for obtaining a real estate mortgage for expatriates, check 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 incapacity to work of one of the co-borrowers.
Insurance Quota: How to Distribute It Wisely
The insurance quota represents the percentage of the borrowed capital covered by 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 income.
Common distributions:
100% + 100% (200% total) → Maximum coverage. In the event of a co-borrower's death, the mortgage is fully repaid. Recommended if the incomes are balanced.
70% + 30% → Coverage tailored to unequal incomes. The 70% co-borrower finances the majority, the survivor continues to pay their part (30%).
50% + 50% → Cost saving but high risk. If one dies, the survivor must repay 50% of the remaining capital.
💡 Remember: For expatriates, 200% insurance (100% each) is highly recommended. The additional premiums linked to the country of residence are often lower than the financial risk assumed by the survivor with partial coverage. Check our guide on expatriate borrower insurance to optimize your coverage.
Solidarity Clause and Practical Consequences
The solidarity in the contract means that if one of the co-borrowers 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 recovery procedures against both.
In prolonged non-payment, the consequences include:
Bank accounts freezing
Registration in the FICP (File of Incidents of Loan Repayment to Individuals)
Wage garnishment via judicial procedure
Foreclosure of the property as a last resort
From abroad, managing these defaults becomes even more complex: time zone differences to reach the bank, urgent international transfers, difficulty obtaining payment extensions. Anticipate these situations by establishing a security fund equivalent to 6 months of payments.
Mixed Configuration: 1 Expatriate + 1 French Resident
This hybrid situation simplifies some procedures. The French resident co-borrower reassures the bank as they maintain local contact and can manage administrative emergencies. The file often benefits from intermediate conditions between a 100% expatriate file and a 100% resident file.
However, beware: solidarity applies both ways. If the expatriate stops paying (job loss, emergency repatriation), the French resident will have to assume the payments alone, even if earning less or if the purchase primarily aimed at the expatriate.
Marital Status and Legal Frameworks
Your marital status directly impacts the mortgage solidarity and the ownership of the acquired property. French law distinguishes several scenarios with different consequences.
Married Couples: Automatic Solidarity
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 for a separate property regime.
Marital Regimes and Their Impacts:
Community of Acquests (default regime) → The purchased property becomes automatically communal, owned 50/50, regardless of each one's contribution.
Separate Property → Each spouse retains ownership of their income and acquisitions. Property distribution must be specified in the notarial deed (e.g., 60/40 according to contributions).
Universal Community → All present and future assets are communal. Simplifies transmission but can complicate certain patrimonial arrangements.
Civil Partnership and Common-Law Union: Different Rules
For civil partners, the rule depends on the PACS signing date:
PACS signed after December 31, 2006 → Separate property regime by default. Each remains owner according to their designated share in the deed.
PACS signed before 2007 → Automatic 50/50 undivided ownership, unless otherwise specified.
Couples in a common-law union do not benefit from any automatic solidarity. Loan solidarity applies only if explicitly mentioned in the contract. Property ownership is managed in undivided ownership: each buyer holds a share proportional to their contribution or according to the agreed distribution.
Undivided Ownership vs. SCI: Structuring Smartly
Undivided ownership is the default regime when multiple people buy together. Simple to set up, it has limits for management (unanimous decisions) and transmission (high inheritance taxes).
The Real Estate Civil Company (SCI) offers a structured alternative, particularly suitable for expatriates. It allows dissociating share ownership from property management, facilitates gradual transmission, and optimizes taxation depending on patrimonial objectives. Find out how to create a SCI as an expatriate to secure your investment.
Risk Management and Solutions in Case of Separation
Geographical distance complicates the management of conflict situations. Anticipating break-up scenarios or unforeseen events prevents costly administrative and financial blockages.
Mortgage Disengagement: A Complex Procedure
Disengagement allows removing a co-borrower from the mortgage contract, but 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 a contract modification accepted by the creditor.
Conditions for Bank Acceptance:
The remaining co-borrower must prove their ability to repay alone (sufficient income, debt-to-income ratio < 35%)
An additional guarantee may be required (mortgage, insurance policy pledge, third-party guarantee)
The departing co-borrower may have to provide financial compensation
From abroad, this procedure requires:
Sending a registered letter with acknowledgment of receipt to the bank
Providing updated proof for the remaining co-borrower
Signing an amendment to the mortgage contract, often by notarized proxy
⚠️ Attention: Timelines vary from 2 to 6 months. The bank may refuse if guarantees are insufficient, even in case of divorce or formal separation.
Compensatory Buyout: Who Keeps the Property?
The compensatory buyout consists in buying out the leaving co-borrower's and co-acquirer's share. This operation often requires new financing to release the necessary cash flow.
Detailed Example:
Property purchased at €300,000, remaining capital due of €200,000, current value of €320,000.
Departing 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 be paid + refinancing of their remaining loan share.
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.
Property Sale: Last Resort Solution
The sale allows for the definitive settlement of the mortgage and ends solidarity. The sale proceeds repay the remaining capital due, any early repayment penalties, then the balance is distributed among co-acquirers according to their shares.
Particular Cases to Anticipate:
Real estate loss → If the property sells for less than the remaining due capital, co-borrowers must make up the difference proportionally.
Difficult market → The property may remain on sale for a long time, during which payments continue to accrue. Anticipate a delay of 6 to 18 months depending on the local market.
Sale costs → Count on 7 to 10% of the sale price (agency commission, diagnostics).
✅ Good to Know: Some mortgages apply early repayment penalties (IRA) limited to 6 months of interest or 3% of the remaining capital. Check your contract before engaging in a sale.
Conclusion
International co-borrowing offers the opportunity to accomplish your real estate project in France by pooling borrowing capacities. Two essential points to remember: solidarity commits each to the entire debt (not just your "share"), and each co-borrower must provide a complete file in accordance with French banking requirements.
The intelligent distribution of insurance quotas and anticipating separation or unforeseen scenarios secures your investment. Depending on your marital status and patrimonial objectives, legal structures such as the SCI can optimize management and transmission.
At Invexa, we support expatriates in setting up their co-borrowing files, negotiating down payments comparable to French residents (10 to 20%), and coordinating all parties involved from your country of residence. Our experts analyze your specific situation to identify the best financing and protection strategies.
Accomplish your real estate project with peace of mind, even remotely: contact our Invexa advisors for a personalized study of your international co-borrowing file.
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