Understanding the process
Loans provided in order to acquire property are intended to help individuals who want to purchase a property asset for their family.
In order to receive a loan, you must fulfill the following conditions:
- You must be a civil servant
- You must apply for this loan in order to acquire a main place of residence for your family
- You may not already be the owner of residential property in Monaco which satisfies the needs of your household
- You must apply for the loan for housing which, because of its size, would satisfy the normal housing needs of your family
- The housing must be located on monegasque territory
The loan amount may not exceed 80% of the value of the property, which must be bought for €91, 000 or under.
You are personally obliged to pay at least 20% of the value of the apartment when you sign the bill of sale.
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 5%, 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.
The maximum duration for the loan is 15 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. This amortisation table is established by the Department of Budget and Treasury and payments are deducted from the individual’s salary.
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
- Information concerning the apartment you are proposing to buy (address, specifications, price)
- A certificate from your bank proving that 20% of the value of the property you wish to buy is freely available to you
- 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)
You should submit the complete application to the Department of Budget and Treasury.
The deed of loan is prepared by a notary public.
It mentions the securities required from the loan recipient:
- Privilege of the money lenders
- Death and disability insurance
The loan amount granted is paid after mortgage registration or security at the agreed rank.
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