Introduction
Buying as a pair means increasing your borrowing capacity. Buying as a pair from abroad also means multiplying the documents to provide, legal responsibilities, and questions to anticipate. International co-borrowing makes it possible to bring ambitious real estate projects in France to life, but it commits each signatory far beyond a simple "half" of the Mortgage.
Contrary to popular belief, borrowing with your spouse, a parent, or a friend does not mean each person repays only their share. The joint and several liability set out in the agreement makes you responsible for the entire debt in the event of default by the other co-borrower. This rule takes on a particular dimension when you manage everything from Bangkok, Montreal, or Abu Dhabi.
This guide explains how co-borrowing works for expats, the specific banking conditions, how insurance coverage shares are allocated, the impact of marital status, and solutions in case of separation or unforeseen events.
How co-borrowing works for expats
Being a co-borrower means jointly signing the Mortgage agreement with one or more other people. Each signatory is legally committed to repaying the full mortgage, not just their "share." This distinction is crucial to understanding your responsibilities.
Co-borrower vs co-owner: a common confusion
The co-borrower appears on the Mortgage agreement and is financially committed to the bank. The co-owner appears on the deed of sale and becomes the owner of the property. These two statuses may overlap, 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 an owner. You can therefore borrow as two people to finance a purchase for a single buyer, for example to help a relative increase their borrowing capacity.
💡 Key takeaway: Banks rarely accept this setup for expats. They favor situations where co-borrowers = co-owners to secure their collateral on the financed property.
The principle of contractual joint and several liability
Joint and several liability between co-borrowers is systematically included in real estate Mortgage agreements. According to Articles 1310 to 1319 of the Civil Code, this liability means the bank can demand from any co-borrower repayment of the full monthly installments, and not only their theoretical share.
In practical terms: if you borrow with your spouse and they stop paying their half, you will have to cover 100% of repayments. The bank is not required to first seek recovery from the defaulting co-borrower. This joint liability remains even in case of separation, divorce, or relocation to another country.
Who can be a co-borrower from abroad?
You can borrow with:
Your spouse/partner if married, in a civil partnership, or unmarried partners
A family member (parent, sibling, adult child)
A friend or business partner for a rental investment
Banks accept up to a maximum of 4 co-borrowers, but the higher the number, the more complex the file becomes to assess. For expats, the most common setup remains a couple (2 co-borrowers), as it simplifies document management and reassures lending institutions.
Banking conditions specific to international co-borrowing
Co-borrowing increases requirements: each co-borrower must provide a complete file, as if borrowing alone. This administrative constraint is added to already strict criteria applied to non-residents.
Required documents for each co-borrower
French banks require the following supporting documents for each Mortgage signatory:
Identity and personal status:
Valid passport or national ID card
Family record book
Marriage contract or civil partnership agreement (if applicable)
Proof of address in country of residence (less than 3 months old)
Employment status and income:
Employment contract
Pay slips for the last 12 months
Tax assessment from 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 for current mortgages
⚠️ Please note: If one of the co-borrowers lives in a country requiring certified translations (China, Japan, Arabic-speaking countries), processing times may be extended by an additional 4 to 8 weeks.
Personal contribution and combined borrowing capacity
The main advantage of co-borrowing is combining incomes and borrowing capacities. Banks calculate the overall debt ratio by considering both co-borrowers' incomes, making it possible to borrow a higher amount than a single borrower could obtain.
Personal contribution: While traditional banks often require 30% to 40% of the acquisition price for non-residents, Invexa negotiates with its banking partners for conditions comparable to French residents: between 10% and 20%. This contribution covers notary fees (about 7–8% for existing properties) and part of the acquisition price.
The maximum debt 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 weight foreign income based on country of residence and local currency stability. A salary of USD 8,000 in New York may be valued differently from an equivalent salary in Bangkok.
Impact of each co-borrower’s country of residence
When both co-borrowers live in the same country, banks assess the file as a standard expat 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 assess two geographic contexts, two labor law frameworks, and two separate 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 an expat real estate mortgage, see our complete guide on this topic.
Allocation of responsibilities and borrower insurance
Borrower insurance takes on a strategic role in expat co-borrowing. It determines who pays what in the event of death, disability, or incapacity to work of one co-borrower.
Insurance coverage share: how to allocate it wisely
The insurance coverage share represents the percentage of borrowed capital covered by insurance for each co-borrower. The total can exceed 100%: each of you can be insured at 100% (total share of 200%), or allocated differently depending on your profiles and income.
Common allocations:
100% + 100% (200% total) → Maximum coverage. In the event of death of one co-borrower, the Mortgage is fully repaid. Recommended when income is balanced.
70% + 30% → Coverage suited to unequal income. The co-borrower at 70% covers most of it; the survivor continues paying their share (30%).
50% + 50% → Cost savings, but high risk. If one dies, the survivor must repay 50% of the outstanding principal.
💡 Key takeaway: For expats, 200% insurance (100% each) is strongly recommended. Extra premiums related to country of residence are often lower than the financial risk borne by the survivor with partial coverage. See our guide on expat borrower insurance to optimize your coverage.
Joint liability clause and practical consequences
The joint liability set out in the agreement means that if one co-borrower stops paying, the other must immediately make up the difference. The bank does not wait and does not negotiate: it debits the solvent co-borrower’s accounts or initiates recovery procedures against both.
In case of prolonged non-payment, consequences include:
Freezing of bank accounts
Registration in the FICP (Personal Credit Repayment Incident File)
Wage garnishment through court proceedings
Seizure of the property as a last resort
From abroad, managing these arrears becomes even more complex: time differences to reach the bank, urgent international transfers, and difficulty obtaining payment deadlines. Anticipate these situations by setting up a safety fund equivalent to 6 months of installments.
Mixed setup: 1 expat + 1 French resident
This hybrid situation simplifies certain steps. The co-borrower residing in France reassures the bank because it maintains local contact and can manage administrative emergencies. The file often benefits from intermediate conditions between a 100% expat file and a 100% resident file.
However, be careful: joint liability applies both ways. If the expat stops paying (job loss, emergency repatriation), the French resident will have to cover the installments alone, even if they earn less or if the purchase primarily benefited the expat.
Marital status and legal regimes
Your marital status directly affects Mortgage liability and ownership of the acquired property. French law distinguishes several scenarios with different consequences.
Married couples: automatic liability
Article 220 of the Civil Code establishes automatic joint liability 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 separation of property regime.
Marital regimes and their impacts:
Community reduced to acquisitions (default regime) → The purchased property automatically becomes joint property, owned 50/50, regardless of each person’s contribution.
Separation of property → Each spouse keeps ownership of their income and acquisitions. Ownership split must be specified in the notarial deed (e.g., 60/40 based on contributions).
Universal community → All assets, present and future, are joint. Simplifies inheritance transfer but may complicate certain wealth structuring plans.
Civil partnerships and unmarried couples: different rules
For civil partners, the rule depends on the date the civil partnership was signed:
Civil partnership signed after December 31, 2006 → Separation of property regime by default. Each remains owner according to their share defined in the deed.
Civil partnership signed before 2007 → Automatic joint ownership regime 50/50, unless otherwise stated.
Unmarried couples do not benefit from automatic joint liability. Mortgage liability applies only if explicitly mentioned in the agreement. Property ownership is managed through joint ownership: each buyer holds a share proportional to their contribution or according to the agreed allocation.
Joint ownership vs SCI: structuring intelligently
Joint ownership is the default regime when several people buy together. Simple to set up, it has limits for management (unanimous decisions) and inheritance transfer (high inheritance taxes).
The Real Estate Civil Company (SCI) offers a structured alternative, particularly suited to expats. It allows ownership of shares to be separated from property management, facilitates progressive transfer, and optimizes taxation according to wealth-planning objectives. Find out how to create an SCI as an expat to secure your investment.
Risk management and solutions in case of separation
Geographical distance complicates the management of conflict situations. Anticipating breakup or unforeseen-event scenarios helps avoid costly administrative and financial deadlocks.
Release from joint liability: a complex process
Release from joint liability allows one co-borrower to be removed from the Mortgage agreement, but it requires bank approval, which is never guaranteed. According to Articles 1310 to 1319 of the Civil Code, joint liability remains until full repayment, unless a contractual amendment is accepted by the creditor.
Bank acceptance conditions:
The remaining co-borrower must demonstrate ability to repay alone (sufficient income, debt ratio < 35%)
Additional collateral may be required (mortgage, life insurance pledge, third-party guarantee)
The outgoing co-borrower may have to provide financial compensation
From abroad, this process requires:
Sending a registered letter with acknowledgment of receipt to the bank
Providing updated supporting documents for the remaining co-borrower
Signing an amendment to the Mortgage agreement, often via notarized power of attorney
⚠️ Please note: Timelines range from 2 to 6 months. The bank may refuse if guarantees are insufficient, even in case of divorce or formalized separation.
Equity buyout: who keeps the property?
An equity buyout consists of buying out the share of the outgoing co-borrower and co-owner. This transaction often requires new financing to provide the necessary cash.
Numerical example:
Property purchased for €300,000, outstanding principal of €200,000, current value of €320,000.
Outgoing party’s share: 50% of €320,000 = €160,000
Buyout amount: €160,000 - (50% of €200,000 repaid through insurance or by the buyer) = minimum €60,000 to be paid + refinancing of their share of the remaining Mortgage.
Banks assess this request as a new Mortgage. The remaining co-borrower must prove 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
The sale allows the Mortgage to be definitively settled and ends joint liability. Sale proceeds repay outstanding principal, any early repayment penalties, then the balance is distributed among co-owners according to their shares.
Special cases to anticipate:
Capital loss on property → If the property sells for less than the outstanding principal, co-borrowers must cover the difference proportionally.
Difficult market → The property may remain listed for a long time, during which installments continue. Plan for a timeline of 6 to 18 months depending on the local market.
Selling costs → Expect 7% to 10% of the sale price (agency commission, diagnostics).
✅ Good to know: Some mortgages apply early repayment penalties (IRA) capped at 6 months of interest or 3% of outstanding principal. Check your agreement before proceeding with a sale.
Conclusion
International co-borrowing offers the opportunity to bring your real estate project in France to life by pooling borrowing capacities. Two essential points to remember: joint liability commits each of you for the full debt (not just your "share"), and each co-borrower must provide a complete file compliant with French banking requirements.
Smart allocation of insurance coverage shares and anticipation of separation or unforeseen-event scenarios secure your investment. Depending on your marital status and wealth objectives, legal structures such as SCI can optimize management and transfer.
At Invexa, we support expats in structuring their co-borrowing files, negotiating contribution conditions comparable to French residents (10% to 20%), and coordinating all stakeholders from your country of residence. Our experts analyze your specific situation to identify the best financing and protection strategies.
Move forward with your real estate project with confidence, even remotely: contact our Invexa advisors for a personalized review of your international co-borrowing file.
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