How to apply for a loan in order to acquire property if you are a Monegasque national
Direction du Budget et du Trésor
12, Quai Antoine 1er
MC 98015 MONACO CEDEX
Ms Audrey BOUAZIS :
(+377) 98 98 44 65
Opening Hours : from 9.30am to 5.00pm from Monday to Friday
Principle and conditions
Loans provided in order to acquire property are intended to help individuals of Monegasque nationality who want to purchase a property asset for their family in the private housing sector on the Principality’s territory only.
In order to receive a loan, you must fulfill the following conditions:
- You must be a monegasque national
- You must apply for this loan in order to acquire a main place of residence for your family
- You must not be the owner of property in the Principality or the owner of the only housing you reside in, if you commit to reselling this housing
- You must apply for the loan for a property which is located on the Principality’s territory
The loan amount may not exceed a ceiling of €762, 000, bearing in mind the value of the asset and registration and recording charges associated with the acquisition.
You are personally obliged to pay at least 15% of the value of the asset when you sign the bill.
The loan amount is limited in as much as the monthly repayment may not exceed a quarter of the household income.
The interest rate is 4%, regardless of whether you are married or live alone.
It is not possible for this rate to be lower than 2%, but it can be reduced by 1 point for a child under the age of 21 who lives in the household and by 0.5 points for any additional children.
In the event that a child is born during the loan amortisation period, the rate may be reduced by 0.5 points per child, but it is not possible for the rate to be lower than 2%.
You are obliged to inform the Administration of any change in the composition of your household or when a child reaches 21. The loan rate will then increase by 0.5 points.
The maximum duration for the loan is 25 years.
The loan must be reduced in accordance with your age in order that it may be settled when you reach the age of 65.
The loan is repaid with steady monthly payments which are defined in an amortisation table.
Collating the documents
You must provide:
- A written application addressed to H.E. the Minister of State, but submitted to the Department of Budget and Treasury
- A Birth certificate
- A certificate of nationality
- The number and description of the individuals living in the household
- A certificate from the applicant’s bank proving that 15% of the value of the property the applicant wishes to buy is freely available to them
- A certificate from any employer(s) concerning the amount of household income or any other documentary evidence of these resources
- Information concerning other premises of which you are already the owner (including the reasons why you do not personally reside in these premises)
Submitting the application
You should submit the complete application to the Department of Budget and Treasury.
Sign the deed of loan
Loans subject to an administrative act received by the Director of the State Property Authority before any payment.
It mentions the securities required from the loan recipient:
- Privilege of the money lenders
- Death and disability insurance
- First rank mortgage
Receive the loan payment
The loan amount granted is paid after mortgage registration or security at the agreed rank.
Repay the loan
Each month, you must pay the sum provided for in the amortisation table which is prepared by the Department of Budget and Treasury
You may make an advance repayment of the loan without being penalised by advising the State Property Authority of your intention at least three months before the expected date of repayment using a registered letter with acknowledgement of receipt.
The outstanding balance becomes payable immediately:
- Should some or all of the sums loaned be used for purposes other than those provided for in the contract
- In the event that the premises acquired is not occupied within one year from the date of purchase
- In the event that three monthly capital or interest repayments were not paid on the due date, a single order granting one month to repay the loan is then made by registered letter with request for acknowledgement of receipt
- In the event that the ownership of the acquired apartment was granted free of charge, in the event of leasing or sub-letting, in the event of capital investment or any other agreement transferring ownership, use or usufruct of the aforementioned apartment to a third party, without the permission of the Government
- In the event of non-performance of one or several of the conditions of the loan contract
- In the event of non-payment of death and disability and fire insurance premiums
- In the event that the borrower subsequently entered into a contract for another loan before gaining the approval of the State Property Authority
- In the event that the beneficiary does not inform the State Property Authority of any change in the composition of their household or when a child in the household reaches 21