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I will soon receive a sum of money which will allow me to pay all cash for a house.

However, I'd rather pay for the house over a long period of time. I would like to put the unspent money to work in the stock market & similar.

I had planned to go with a mortgage. My reasoning was that the money I'd be making from investing the unspent capital would be greater than the interest I'd be paying (around 1% in my area). However, a financial adviser just recently told me it would be hard to get a mortgage with my current work situation (fixed-term contract). In addition, I have low income with a fixed-term contract and in France financing is based on your capacity to borrow in terms of income. While collateral, assets and lien on other property can help, they can't be the basic for a loan.This link covers the basics of borrowing in France. So borrowing from a French bank is an unlikely possibility for me.

Is there a way to finance the purchase of a house over a long period of time, without going through a mortgage and being able to use the unspent money?

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    1% seems awfully low. For such a rate, I'd sell a kidney (g). Speak to other mortgage brokers and banks and ask how much of a down payment would qualify you for a 1% mortgage. There may a number where that collateral is sufficient to accept the amount of your fixed-term contract. – Bob Baerker May 29 '18 at 12:35
  • Sounds like a good plan as I've only talked to one mortgage broker so far. – edoreld May 29 '18 at 12:44
  • I wonder if a reverse mortgage could work. – NPSF3000 May 29 '18 at 21:24
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There are a few strategies to consider.

Buy Outright

In this case, you don't need the bank. You'll own the house outright.

To cover your saving and investing now you need to pretend that you pay the mortgage to yourself. So instead of paying the bank 1000EUR a month, you take 1000EUR a month and save it or invest it. I made up 1000EUR a month, set that value to some reasonable figure for the income you do have. If you have less income and "miss" payments, make them up later when you have extra. If you have a productive month, pay extra.

The disadvantage to this plan is that you're starting from zero for your investing instead of starting with the large lump sum.

Negotiate

The article you linked had a lot of "can" and "may" statements. I wouldn't expect a bank to bend rules for a regular person, but there is little harm in asking. If you can show that you have your lump sum on deposit with the bank in an account and show income, they may be able to work something out that satisfies their assessors and regulators.

The major risk is that you're taking on debt and may have to have your money locked up in a bank account or invested with that bank instead of where you really want it invested.

You also put your time at risk, you'll have a lot of meetings and paperwork to deal with. The bank might still say "non" even if you show all your papers.

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    I'm confused by the first "buy outright" scenario. The OP doesn't have a regular 1000 EUR/month income to pay himself with after the initial sum is spent on the house. – Nuclear Wang May 29 '18 at 18:16
  • @NuclearWang the idea is that OP gets money for saving and investing by depositing about as much money as a mortgage payment each month. I edited my answer to reflect that OPs income may fluctuate as contract employment changes – Freiheit May 29 '18 at 19:36

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