Mortgages in Monaco

Monaco is a place like no other on earth. Despite its size, it’s incredibly glamourous and fun, it has an international outlook, and there are lots of things to do. Monaco remains a firm favourite of high-net-worth individuals from around the world, many of whom are drawn by the Principality’s competitive fiscal regime, the glamour of the city-state and sunny climes.

It’s not surprising that Monaco is also in a class of its own when it comes to property. Although it’s small (the Principality’s footprint is less than that of Central Park in New York), there are distinctive quarters and a wide variety of properties to buy. Properties in Monaco’s newest buildings will cost more than €13.5 million, and average prices for apartments in existing property costs around €5 million. There are also disparities in property price depending on where you are buying. Monte Carlo and Larvotto tend to see some of the most luxurious and priciest properties with those in other quarters costing less on average. 

Monaco is made up of various quarters: Monte Carlo, Larvotto, La Rousse, Monaco Ville, Jardin Exotique, Moneghetti, Fontvieille and Condamine.

Of these, Monte Carlo is perhaps the most well-known. Home to Monaco’s casinos, best hotels, and the famed ‘Golden Square,’ Monte Carlo offers a limited number of properties compared to other parts of Monaco, but those here have one of the most exclusive addresses in the world. 

Larvotto sits on Monaco’s seafront, and it is one of the most popular areas to live in the Principality. With lots of restaurants, a vibrant ambience and a family-friendly atmosphere, some of the best real estate in Monaco is situated here. 

La Rousse, sometimes better known as Saint-Roman, is a residential area which borders France on two sides. Monaco’s iconic Tour Odéon is located in the area – one of the first skyscrapers to be built in Monaco since the 80’s and one of the tallest buildings on the Mediterranean coast. 

Monaco Ville is home to some of Monaco’s most famous buildings, including the iconic whitewashed palace. 

One of Monaco's more extensive (and the highest) quarters is known as the Jardin Exotique. The quarter takes its name from the botanical garden, which is situated here and gives the area lots of greenery and tranquillity. 

Moneghetti’s winding streets rise steeply from the sea. Sometimes considered one of the quieter parts of Monaco, the quarter is predominantly residential with some larger, classical properties. 

Condamine used to be one of the largest areas of Monaco before its quarters were restructured. Today, Condamine is vibrant and is famous for its market and the Port Hercule. 

Lastly, Fontvieille is one of the newest areas in Monaco. It was almost wholly reclaimed from the Mediterranean Sea in the '70s in an ambitious project spearheaded by Prince Rainier III. 

When it comes to property, Monaco offers something for everyone. Despite the relative land shortage, there are properties aplenty. Flats and smaller pied-a-terre type apartments tend to be the norm. However, penthouse apartments and more extensive luxury flats are often available for those searching for more space, sometimes with large roof terraces to complement indoor living space. Complete houses or villas are scarce in Monaco.

When it comes to Monaco mortgages and property finance, even the most seasoned buyers and investors can be caught out by the speed the market moves at. Some properties don’t make it onto the market at all before they are sold, and it’s not unusual for properties to be snapped up within just a few days. 

There is exponential demand for property in Monaco, and liquidity is essential to ensure you can buy the property you want when you find it. Real estate in the Principality is some of the most expensive in the world, and €5-€10 million for a property is the norm. Despite the net worth of those who live here, most buyers will opt for a mortgage for Monaco property purchases. Doing so will often present fiscal benefits vs cash-only sales and means buyers don’t have to liquidate assets to generate the capital they need in a single lump sum.

When it comes to securing a mortgage in Monaco, your broker will be able to negotiate every aspect of the deal. You may want the cheapest mortgage possible, or you may prefer the most flexible terms or have a desire to work with a specific lender. Whatever your requirements, Enness will be able to help. With contacts in both the local banks, French banks active in the Riviera region (who often lend for Monaco property purchases) and international private banks, your broker will be able to go straight to the source of the best finance. 

Enness’ brokers are specialists in arranging competitive rates and terms, regardless of how much you want to borrow. Enness negotiates every mortgage in Monaco on a case-by-case basis and will tailor the package to your needs and requirements, working out the most advantageous structure for you and which lenders will best serve you. Despite the relatively niche area, Enness’ brokers have extensive experience negotiating mortgages in Monaco, including in cases where there are cross-border elements and dry mortgages. 

If you are thinking of buying property in the Principality, it’s ideal to approach Enness ahead of time so the team can source in principle offers for you from lenders. Given the high property costs, not every lender can finance property, and it’s easier to get caught out without finance than you might think. Sometimes your bank may not offer mortgages. Other times, you will find that your bank does not provide the most competitive rates, and on different occasions, your bank may not have an appetite to lend what you want to borrow. Enness will be able to source in principle offers for you in just a matter of days, giving you peace of mind as you embark on a property search. 

Of course, this is an ideal world scenario. Enness regularly negotiates property finance on behalf of clients who have found a home they want to buy but who don’t have any pre-planned options for finance. In these cases, your broker will be able to move quickly to secure advantageous property packages that will ensure your deal moves ahead smoothly. Whether you are working with an in-principle offer or not, liquidity is essential in Monaco, which is essentially a sellers’ market. Competition is fierce, and ensuring you have the capital available to you to make the purchase will often be the difference between securing a sale or missing out on a property you love. No matter how quickly you need to secure finance, Enness will be able to help you to secure a competitive mortgage in Monaco.

Whatever you are looking for regarding a mortgage, Enness will source and build a finance package tailored to your needs – every deal your broker negotiates will be one of a kind. Your broker will assess your assets, requirements and will often approach specific lenders to arrange finance, knowing which firms will offer the best deal in your scenario. 

When it comes to mortgages in Monaco, there is a lot of choice:

• For properties valued at a maximum of €5 million (relatively common in Monaco), 85% loan-to-value (LTV) is possible without needing to put assets under management with a lender, which can be very advantageous. 
• If you are open to putting assets under management, it is possible to fully finance a property valued at €5 million – such high LTVs are relatively uncommon elsewhere. Expect to put down at least €1 million under management with a lender to benefit from this kind of deal. 
• If you are looking to borrow more than €5 million to buy a property, putting assets under management will often secure the best deal (and maybe the only conditions under which a lender will let you borrow). What you will need to pledge will vary from lender to lender, but anything between 20-50% of the mortgage value is standard. 
• Interest-only mortgages can be an option in Monaco, and these usually have a term of between five and seven years.
• Capital and interest repayment mortgages can often exceed 20 years in length.
• You will be able to secure finance in any currency
• Mortgages taking in fixed-rate, variable-rate, tracker and capped interest rates can offer more flexibility and are readily available from lenders

Even if you have been based in Monaco for many years and have an established network in the Principality, it can take a seasoned player like Enness to secure the most competitive package. Sometimes, international banks or alternative lenders will offer better deals than domestic players.

You will find that Enness’ reputation will open lenders’ doors for you, and when securing a finance package is time-critical, your broker will have the network – in Monaco or elsewhere – to deliver the best deal for you.

How you present your case is essential when it comes to buying a property in Monaco and getting a mortgage. Your income, net worth and liquidity will play a part in what lenders offer you. However, the lenders that can assess your situation based on your global net worth rather than your income or assets in Monaco, are likely to be more advantageous to you.

If you want to acquire property in Monaco, only a few "formal" limitations prevent you from doing so. Although these can be relatively subtle, you need to understand the barriers to entry before you start a property search.

If you want to buy a property in Monaco for investment purposes (as a buy-to-let, for example) but don’t want to live in the Principality, you will be able to do so quite easily. Monaco has a global outlook regarding property ownership, and foreigners can buy with relative ease. That said, ownership of the real estate in Monaco is essentially restricted by price given property is so expensive. In effect, this means the authorities don’t need to create lots of formal regulations about who can buy or not because many people are simply unable to afford to buy property here.

Unusually for a European country, Monaco does not require you have a residency permit before you find a property you will live in. When you (or a close relative such as a husband and wife, cohabiting couple, parents and children) have purchased real estate, you can then go on to apply for Monaco's permanent residency card. These are usually granted to individuals who have secured a rental contract for a minimum of a year or who have bought a property in Monaco and who have sufficient funds to live in the Principality.

However, residency is also linked to your ability to afford to live in Monaco. If you wish to live in Monaco but aren't employed in the Principality, you will typically need to deposit a large sum of money in a Monaco bank when you apply for residency, which essentially provides proof you are liquid enough to afford life in the city-state. Naturally, being employed in Monaco (as an employee or owner of a Monaco company) or having financial support from a family member will also provide the necessary proof of financial security. It is always imperative to seek specialist and tailored advice about what moving to Monaco will entail and the conditions for living in the city-state. It's essential to understand the entry requirements and the financial, legal and fiscal implications a move can have and your rights to live in Monaco before you take your Monaco property search any further.

In essence, the cost of property and day-to-day life is a major limiting factor for most people looking to buy real estate in Monaco, rather than administrative or legal limitations enforced by the authorities.

Buying a house and securing a mortgage in Monaco can be challenging for foreigners. The property market is highly competitive given the global appeal of the Principality, the relative shortage of properties and the fact that buyers often outnumber sellers. Even at the top of the market for the highest-value properties, there can be multiple would-be buyers, especially for unique properties or larger apartments. In Monaco, liquidity is paramount. Having an in principle offer is ideal, but Enness will be able to source property finance offers for you exceptionally quickly if you find a property you would like to buy and haven’t yet thought about a Monaco mortgage. 

Enness’ brokers will tap into their network of more than 500 lenders to secure the best property finance for you. Sometimes, this will mean that your broker will approach private banks based in Monaco. On other occasions, international private banks will offer the best rates or alternative or niche lenders may offer the most competitive rates. 

Ultimately, what you will pay will depend on your global assets, revenue, and overall financial situation. Your broker will go directly to the lender that will best cater to your situation, and Enness will structure the deal around you and your needs.