On paper, a private bank mortgage looks a lot like a retail one : same collateral, same notarial process, same French Consumer Code framework. In practice, once the file is a certain size, almost nothing works the same way. This guide is written for high-net-worth individuals and family offices preparing a French acquisition above the €2M mark. It stays deliberately high level : the specific structuring and negotiation that make the difference on a given file are the conversation we have with our clients, not something we lay out in an article.
Retail bank versus private bank : a different logic, not just a bigger cheque
A retail mortgage, whether granted by a French bank or a foreign one, follows a scorecard : a debt-to-income ratio, an LTV grid, a rate table by profile and duration. It works well up to a certain complexity and a certain size. Above that threshold, the file no longer fits the templates. Cash flows come from multiple sources, assets sit across several jurisdictions, and the client’s objectives are patrimonial rather than transactional.
A private bank does not process such a file through a scorecard. It underwrites the client as a whole, and the mortgage is one component of a broader banking relationship. Which private bank, on which terms, at which moment, is the specialist conversation we handle for our clients.
What changes at the €2M threshold
Two million euros is not a magic number. It is, however, roughly the level at which retail banks start hitting their internal ceilings on international files, and the level at which private banking desks start actively engaging. Above it, a few things shift :
- Underwriting becomes holistic. The mortgage is assessed as part of the total client relationship, not scored in isolation against a debt-to-income ratio.
- Structure becomes co-designed. Instead of a single amortising template, a wider palette of structures becomes available : in fine loans (interest-only over the term, capital repaid at maturity), interest-only periods followed by amortisation, Lombard credit lines against a pledged portfolio, multi-currency drawdowns, and combinations of these. Which one fits depends on the client’s cash flow, tax position and patrimonial goals, and is designed together with the private banker.
- Collateral becomes multi-dimensional. The property is no longer the only collateral considered. The client’s broader financial assets can enter the conversation, which changes what the bank can offer.
Each of these levers, taken alone, is technical. Combined, they turn a mortgage into a piece of patrimonial engineering. That is the nature of private banking financing above €2M : the structuring itself is the value, and it is a case-by-case conversation, not a standard product.
The pledged asset structure, in principle
The most distinctive mechanism at this level is the pledge of financial assets. In a standard mortgage, the property is the only collateral, which caps the LTV. In a private banking mortgage, a portion of a portfolio held on the bank’s books can be pledged in favour of the bank alongside the property. The client retains ownership of the pledged portfolio and continues to receive any income and gains it generates. Concretely, this means the client does not have to liquidate a portfolio to buy a property : no capital gains are realised, the invested position and its tax basis are preserved, and the acquisition is financed without disturbing the underlying wealth strategy.
The exact terms, ratios, buffers and margin call mechanics are set case by case by the bank in light of the portfolio’s composition and the client’s profile. This is precisely why an intermediary who knows the actual practice of each institution matters : the pledged asset structure is highly negotiable, and what a client can obtain depends on how the file is presented and to whom.
IFI and patrimonial fit
For owners of French real estate above the €1.3M IFI threshold, the way a property is financed has a direct impact on the annual IFI liability, since real-estate-related debt is deductible from the taxable value of the property under Article 974 of the French Tax Code, within the limits set by that article. This is not a reason to borrow ; it is a reason to structure the borrowing carefully when a client would borrow anyway. See our dedicated IFI article for the mechanics and their limits. The IFI treatment must be validated with a qualified French tax counsel in light of your individual situation.
Our banking network
Our cabinet works with a large majority of the private banks active on HNWI mortgages for French property : French private banks (subsidiaries of major French banking groups and boutique institutions), Monegasque private banks, Luxembourg private banks, and Swiss private banks. This four-country network, France, Monaco, Luxembourg and Switzerland, is where the vast majority of international HNWI acquisitions in France are financed. Each institution has its own sweet spots : ticket size, geographic focus (residential Riviera, Paris, ski resorts), pledged asset requirements, and appetite for specific non-resident jurisdictions. Bank appetites also shift with quarters and cycles ; what worked six months ago on a specific profile may not work today.
Our role, as a regulated CIF and mortgage broker supervised by the ACPR and AMF, is to know which institution fits which profile at any given moment, and to introduce your file with the right positioning to the right desk.
Timeline
A HNWI mortgage typically takes 10 to 14 weeks. The discovery phase, where the client’s full asset picture is presented to the bank, is longer than for a retail file. Once discovery is complete, execution tends to be faster than at a retail bank, because the private bank owns the file end to end.
How we support your acquisition
Omage Finance is a regulated mortgage broker (IOBSP) and Conseil en Investissements Financiers (CIF), supervised by the ACPR and AMF. Our dual regulation matters on HNWI files : we can coordinate the mortgage conversation with the broader patrimonial framework, alongside your private banker, notaire, wealth manager and tax counsel, without conflict of interest and within the boundaries of our regulated mandate. We do not act as a private banker, we do not manage assets, and we do not execute FX trades. We coordinate the professionals who do, and we make sure your file is presented to the right institution, at the right desk, with the right structure. The first conversation is confidential and without commitment.