Buying a property involves several months of planning, from calculating your budget to signing the deed with the notary. Each stage of the home-buying process involves different costs and timelines, and some expenses are easy to underestimate until you compare them side by side. This article looks at the differences between the main milestones in a property purchase to identify where the key financial decisions really lie.
Energy audit and EPC: two documents with distinct purposes
Most property-buying guides mention the EPC without clearly distinguishing what it measures from what an energy audit provides. The EPC assigns an energy-efficiency rating (from A to G). The audit, by contrast, sets out renovation scenarios and their estimated costs.
For houses rated E or below, an energy audit may be required when the property is sold. The same rules do not apply to an apartment in a co-owned building. This distinction can make a real difference to buyers: the audit puts a figure on the renovation budget before you even make an offer.
| Document | What it provides | Required when selling |
|---|---|---|
| EPC | Energy-efficiency rating (A to G) | Yes, for all properties |
| Energy audit | Renovation scenarios and estimated costs | Houses rated E or below (excluding co-owned buildings) |
Reviewing both documents lets you factor the actual cost of renovations into your overall budget, rather than relying solely on the EPC rating shown in the listing. A property rated D with no work required may cost less overall than one rated E whose audit calls for a complete insulation overhaul.
Before you start your search, you can buy a property with Services Immo and browse listings that include energy information on the property details page.
Debt-to-income ratio and mortgage financing: what the 35% threshold means
The framework set by the HCSF caps the debt-to-income ratio at 35% of income, including mortgage insurance, with loan terms generally limited to 25 years. This threshold is not just a recommendation: banks must comply, although limited exceptions are allowed.
These exceptions are subject to restrictions and are not an automatic entitlement. A borrower with a comfortable amount of disposable income may still be denied an exception if the lender has already used its quota. The French Banking Federation has also criticized the rigidity of these rules, but no general relaxation has been introduced for buyers.
Borrowing capacity: estimate versus actual approval
Online calculators provide a theoretical estimate of your borrowing capacity. This estimate is not a loan offer. The difference can amount to tens of thousands of euros, depending on the bank’s internal policy and the borrower’s profile.
- Banks do not always count variable income (bonuses, commissions) in full, unlike calculators that include it at 100%
- An outstanding car loan or consumer loan automatically reduces your borrowing capacity, even if the calculator does not account for it in the same way
- Your down payment affects not only the amount you borrow but also the interest rate offered by the lender
Confirming your financing before viewing properties helps you avoid looking at homes beyond your actual budget. Meeting with a mortgage broker or bank before you start your search helps you set realistic parameters for your plans.
Purchase offer and preliminary sale agreement: deadlines that matter
Once you have found a property, the purchase offer formalizes your proposed price. If the seller accepts it, the preliminary sale agreement (or compromis de vente) sets out the terms of the transaction. Two deadlines deserve particular attention.
The buyer has a cooling-off period during which they can withdraw without giving a reason or paying a penalty. After this period, withdrawing means forfeiting the deposit (usually a percentage of the sale price).
Mortgage contingencies
The preliminary sale agreement almost always includes a mortgage contingency. If the bank refuses financing within the period specified in the agreement, the buyer gets their deposit back.
A common pitfall is letting the mortgage contingency deadline pass without having formally applied for a loan. In that case, the seller may consider the condition fulfilled and claim the deposit.
Notary fees and additional costs: overlooked items in a property budget
Notary fees are a well-known expense, but their components are rarely explained in detail. The amount varies depending on whether the property is old or new.
| Property type | Notary fees (approximate) | Includes |
|---|---|---|
| Existing property | Higher (mostly transfer taxes) | Transfer taxes, notary fees, disbursements |
| New-build | Lower (VAT already included in the price) | Notary fees, reduced land registration tax |
Beyond notary fees, other expenses can add to the bill without appearing in the advertised purchase price:
- Property tax, which varies by municipality and can differ significantly between cities for comparable properties
- Co-ownership charges, which should be checked for the last three financial years to identify any exceptional contributions approved at general meetings
- Loan security fees (mortgage or guarantee), which are added to the cost of the mortgage
A reliable purchase budget includes these costs from the start of your search, not after signing.
Renovation costs remain the most variable expense, particularly for properties whose energy audits identify extensive work. Comparing the purchase price, additional costs and estimated renovation expenses gives you a more accurate picture of the total budget committed to the property project.
