Complete Mortgage Guide — France

How Mortgages Work in France

French mortgage rates are influenced by the ECB’s key rate and the OAT (Obligations Assimilables du Trésor) bond yields. However, the HCSF (Haut Conseil de Stabilité Financière) plays a unique regulatory role, imposing a strict 35% debt-to-income cap and maximum term of 25 years (27 for new builds with deferred start). The usury rate (taux d’usure) caps the maximum rate banks can charge, which has occasionally constrained lending when market rates rise quickly

Use our mortgage calculator to see how different rates and terms affect your monthly repayments.

Types of Mortgages Available

France is distinctive for offering long-term fully fixed rates — 15, 20, and 25-year fixed rates are standard and widely available. Variable rate mortgages (taux variable) exist but represent a small share of the market. Most French mortgages are amortising (prêt amortissable), meaning you repay principal and interest monthly. In-fine mortgages (interest-only with lump sum repayment) are available for investment purposes. The Prêt à Taux Zéro (PTZ) is a zero-interest government loan that can be combined with a main mortgage

Read our mortgage types comparison for a detailed side-by-side analysis of each product.

How Much Can You Borrow?

The 35% taux d’endettement (debt-to-income ratio) is strictly enforced — your total debt repayments including the new mortgage, existing loans, and insurance cannot exceed 35% of gross income. Banks can exceed this for up to 20% of new lending (flexibility margin), typically reserved for high-income borrowers or those purchasing their primary residence

The maximum loan-to-value in France is Typically 80-90% for residents. The HCSF rules require most borrowers to provide at least 10% deposit plus cover the frais de notaire (notary fees of 7-8% for existing properties). 100% financing (prêt à 110%) was once available but is now restricted. Banks assess on purchase price plus notary fees, so effective LTV against property value may reach 100% even with a 10% contribution. Loan terms extend up to Maximum 25 years (27 years for new builds where the borrower does not start payments immediately). The 20-year fixed rate is the most popular product. French lenders do not offer terms beyond 25 years, which is regulated by the HCSF since 2022.

The Application Process

Start with a simulation through a courtier (broker) or directly with banks. Provide the last 3 payslips, 2 most recent tax notices (avis d’imposition), 3 months of bank statements, ID, and the compromis de vente. The bank assesses your dossier including your reste à vivre (remaining income after housing costs). A property valuation may be required. The offer (offre de prêt) has a mandatory 10-day reflection period before you can accept — you cannot waive this period

Costs and Fees

Frais de dossier (processing fees) of €500-1,500 depending on the lender. Assurance emprunteur (borrower’s insurance covering death, disability, and job loss) is mandatory and typically adds 0.2-0.5% to the effective rate — this can be a significant cost and should be compared across providers. Garantie (mortgage guarantee) can be a hypothèque (mortgage registration at 1-2%) or a caution (guarantee company like Crédit Logement, at approximately 1% — partially refundable). Frais de courtage (broker fees) of €1,000-2,000 if using a courtier

What Makes France’s Mortgage Market Unique

France’s long-term fixed rates are exceptionally competitive by European standards, and the borrower’s insurance (assurance emprunteur) market has been liberalised — the Lemoine law allows borrowers to change their insurance provider at any time, creating opportunities for significant savings. The mandatory 10-day reflection period on mortgage offers and the strict 35% DTI ratio create strong consumer protection but can limit borrowing capacity for those with existing debts

Refinancing Your Mortgage

Refinancing (rachat de crédit) is possible but involves early repayment fees (IRA — Indemnités de Remboursement Anticipé) capped at the lesser of 3% of outstanding capital or 6 months’ interest. Given France’s already-low fixed rates, refinancing is most valuable after a significant rate drop. Switching your assurance emprunteur to a cheaper provider (possible at any time under the Lemoine law) can achieve savings without refinancing the loan itself

Read our refinancing guide for a step-by-step walkthrough.

Government Schemes and Support

The PTZ (Prêt à Taux Zéro) provides interest-free financing of up to 40% of the purchase price for first-time buyers of new-build or heavily renovated properties in eligible zones. Income limits apply by zone and household size. The PAS (Prêt d’Accession Sociale) offers subsidised rates for lower-income buyers. Action Logement (formerly 1% logement) provides employer-assisted loans at reduced rates for employees of companies with 10+ staff

Check our government grants guide for the latest programmes and eligibility details.

Tips for Getting the Best Deal

Use a courtier (broker) — they are free or low-cost to the borrower and negotiate across multiple banks. The assurance emprunteur is a major hidden cost — use délégation d’assurance to get external insurance from day one rather than accepting the bank’s group contract. Always negotiate on processing fees and insurance, not just the rate. If self-employed, prepare at least 3 years of financial statements

Next Steps

Use our mortgage calculator to model different scenarios, read our property buying guide for the full purchase process, or browse France FAQs for quick answers.