The release of funds refers to the moment when the bank transfers the borrowed capital, usually to the notary, to finalize a real estate transaction. This operation occurs after the borrower’s acceptance of the loan offer and constitutes the last step before signing the authentic deed of sale.
Interim interest: the hidden cost of progressive release
Guides on the release of funds detail the mechanics of the transfer between the bank and the notary, but often overlook the expense that weighs most heavily on buyers in new builds: interim interest. This interest accrues on each portion of capital released before the delivery of the property, without amortizing the loan. In practical terms, the borrower pays interest on the amounts already paid to the developer while continuing to pay their rent or previous loan.
On a construction project under a VEFA that spans more than a year, the bill can amount to several thousand euros. This amount depends on the loan rate, the schedule of fund calls, and the actual duration of the construction. A delay in delivery mechanically extends the period of interim interest, with no simple recourse for the borrower.
Some banks offer a total repayment deferral: no monthly payment is deducted during construction, but interim interest capitalizes and increases the overall cost of the loan. Others apply a partial deferral, where only the interest is paid each month. Comparing these two options before signing the loan offer helps avoid an unpleasant surprise at delivery.
To better understand the release of funds with Up Immo, it may be helpful to visualize the typical timeline of a new purchase and the specific moments when each portion of capital is released.
Notary’s fund call: what actually triggers the transfer
The release does not occur automatically on the scheduled signing date. It is the notary who sends a fund call to the bank, a formal document specifying the exact amount to be released, the date of signing the authentic deed, and the details of the escrow account or the seller.
The bank then has an internal processing time to verify the file, ensure that the borrower’s insurance is in place, and that the guarantee (mortgage, lender’s privilege, or surety) has been established. This timeframe varies from one institution to another.
Documents required by the bank before releasing funds
- The borrower’s insurance certificate covering the amount and duration of the loan, effective on the release date.
- The finalized guarantee: surety deed signed by the surety organization, or mortgage registration confirmed by the notary.
- The notary’s fund call mentioning the amount, date, and recipient account.
- If applicable, proof of personal contribution already paid into the notary’s account.
A missing document or a discrepancy between the amount of the fund call and that of the loan offer is enough to block the transfer. Anticipating the preparation of the file by submitting the insurance certificate and guarantee at least a week before the signing date reduces the risk of delay.
Real estate loan release timeframe: why it varies so much
The time between the fund call and the actual transfer generally ranges from a few business days to several weeks. Several factors explain this discrepancy.
The first is the volume of files processed by the bank. The production of housing loans surged by 29.3% in 2025 compared to 2024, with €171.3 billion granted according to Banque de France data cited by Maubourg Patrimoine. This rebound has saturated the back offices of some institutions during peak demand, extending processing times.
The second factor is the type of guarantee chosen. A bank guarantee (like Crédit Logement) is set up faster than a mortgage, which requires an additional notarial deed. The third concerns the responsiveness of the notary themselves: a fund call sent late mechanically pushes back the release date.
Release of funds in VEFA and CCMI: the schedule linked to the progress of work
For a purchase under VEFA (Sale in Future State of Completion), the release follows a regulated schedule. Each fund call corresponds to a stage of the construction: completion of the foundations, waterproofing, air-tightness, completion of work, and then delivery. The developer sends a progress certificate, which the notary or borrower forwards to the bank, which releases the corresponding portion.
In the case of a CCMI (Individual House Construction Contract), the principle is the same, but the builder invoices according to a schedule set by the contract. The borrower must verify each fund call before requesting the release: an early payment compared to the actual progress of the work is not recoverable in the event of builder default.
Since 2024, the High Council for Financial Stability maintains the rule of a maximum debt-to-income ratio of 35% of net income, including insurance. For a VEFA purchase with progressive release, the bank calculates this ratio by including interim interest and, if applicable, any ongoing rent. A borrower close to the ceiling may be denied a release if their cumulative charges exceed the threshold at the time of the fund call.
The release of funds is not a simple administrative transfer. It is a sequence where the coordination between the notary, bank, and borrower determines the actual date of the transaction. Checking the completeness of the file, anticipating banking processing times, and monitoring interim interest in new builds remain the three concrete levers to avoid a costly delay.