14 May 2018
We are not married: can we take out a joint loan? Yes! Regardless of your family status (non-formalized cohabitation (FR), legal cohabitation (FR) or marriage (FR)), it is entirely possible to get a loan in order to build or buy a property.
A notary can provide you with advice for your specific situation.
Do you live together, or are you married with separation of assets? Then the notary can include a "tontine clause" in the deed of purchase. If one of you were to pass away, this clause ensures that the property or the right of use passes automatically to the other partner. In other words, the surviving partner receives the property via a contract rather than via inheritance. That means that the deceased’s heirs cannot invoke their right to legal inheritance against the surviving partner.
Outstanding balance insurance for extra protection
If you take out a mortgage loan, it is important to consider what might happen if one of you passes away. Will it be too much of a burden to pay off the loan and the fixed costs with one salary? With an outstanding balance insurance policy, you can cover yourselves against this possibility. Depending on the plan you have chosen, the insurance company will continue paying off the part owed by the deceased partner, in whole or in part, until the end of the loan term.