Section 1: Definition and scope

The life mortgage loan is a contract by which a credit or financial institution grants a natural person a loan in the form of a capital sum or periodic payments, secured by a mortgage on a property owned by the borrower for use exclusively as a dwelling, the repayment of which – principal and interest capitalised annually – can only be demanded on the death of the borrower or on…

A credit institution, a financial institution or a third-party financing company mentioned in 8 of Article L. 511-6 of the Monetary and Financial Code may finance renovation work by means of an advance transfer loan secured by a mortgage for the initial amount of the loan plus interest capitalised annually, repayment of which may only be demanded when the property is transferred. Repayment of the interest may be made in…

The life mortgage loan and the transfer advance loan cannot be used to finance the needs of a professional activity.