Mortgages in Monaco

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.