Mortgage in France 2026: Complete Guide for Expat Buyers

1. Current mortgage rates in France

After the sharp rise between 2022 and late 2023, French mortgage rates have stabilised and edged down through 2024 and 2025. The Banque de France publishes a monthly snapshot of rates on new housing loans to households (statistical release CCFA). Headline averages for early 2026, by duration, sit in the following ranges.

Duration	Average rate	Best rate (strong profile)
10 years	3.00%	2.64%
15 years	3.27%	2.92%
20 years	3.40%	3.00%
25 years	3.44%	3.10%

Indicative averages compiled from Banque de France monthly statistics and broker observatories (Empruntis, Vousfinancer, CAFPI) over Q1 2026. Rates vary by region, lender and borrower profile.

Always check the live figure. The Banque de France updates its CCFA statistical release every month. Before signing a simulation, look up the latest figure on banque-france.fr/en/statistics and compare with the TAEG (effective annual rate) on your offer letter.

The usury rate (taux d'usure) ceiling

Independently of the market rate, the Banque de France publishes a monthly maximum effective rate (taux d'usure) by loan category. If your final TAEG, including borrower insurance and bank fees, exceeds the published ceiling, the bank legally cannot lend you the money. This is why high insurance premiums (older borrowers, health issues) sometimes block applications even when the nominal rate is acceptable.

Where rates came from

.2021-2022: historic lows close to 1% on 20-year loans.
.2023: sharp rise on the back of ECB rate hikes and higher inflation, peaking near 4.5% in late 2023.
.2024-2025: stabilisation and gradual decline as inflation came down.
.Early 2026: headline rates between 3% and 3.5%, with the strongest profiles negotiating closer to 2.90% on 15-year loans.

2. Who can borrow: residents vs non-residents

France places no restriction on who can own property here, and most retail banks lend to non-residents, although the process is stricter than for residents. The key difference is risk pricing: foreign borrowers usually pay a slightly higher rate (in the order of 0.1 to 0.3 percentage points) and need a larger deposit.

French residents

10% deposit acceptable, 20% comfortable
CDI strongly preferred; CDD or freelance need 3 years of accounts
EUR income from a French employer
Standard processing in 4 to 8 weeks

Non-residents and expats

20 to 30% deposit typically required
Tax returns from country of residence (2 to 3 years)
EUR income preferred (or hedged)
Certified translations required for non-French documents
French bank account before application

Most common reasons non-resident applications fail: deposit too small, income that the bank cannot verify directly, or applying without a French bank account already open in your name.

3. The HCSF 35% rule and the 25-year cap

Mortgage lending in France is regulated by the Haut Conseil de Stabilite Financiere (HCSF). Decision n. 2021-7 of 29 September 2021, in force since January 2022, sets two hard constraints that apply to all banks issuing housing loans.

Two HCSF rules every borrower must know. First, the debt-service-to-income ratio (taux d'effort) cannot exceed 35% of net income, borrower insurance included. Second, the loan duration cannot exceed 25 years (27 for new builds with up to 2 years of deferred amortisation). Banks may apply a 20% flexibility margin on the production of new loans, but most files stay inside the cap.

What "taux d'effort" actually covers

The 35% calculation includes all monthly credit instalments (housing loan, car loan, consumer loans) plus the monthly borrower insurance premium, divided by net monthly income. Banks usually compute it twice, once as you stand today and once including the new loan, to make sure both pass the cap.

What "reste a vivre" means

Beyond the 35% headline rule, lenders look at the remaining disposable income after the loan instalment (reste a vivre). They typically expect at least 700 to 1,000 EUR per adult and 300 to 500 EUR per child. This is decisive for higher-income borrowers where 35% leaves plenty of headroom in absolute terms.

4. Deposit: how much you actually need

The deposit (apport personnel) is the cash you put in from your own pocket. It serves two purposes: it covers the costs that banks do not finance (notary fees, guarantee) and it signals financial discipline. The market practice has tightened since 2022; 100% financing is now rare.

Minimum (residents):10% of purchase price, just enough to cover notary fees and guarantee.
Comfortable:20% of purchase price, gets the standard rate published by banks.
Optimal:30%+ of purchase price, real negotiation power on rate and fees.
Non-residents:20 to 30% typical baseline, sometimes higher for emerging-market income.

Accepted sources of deposit

.Personal savings: Livret A, PEL, CEL, life insurance (see our life insurance guide).
.Family gift (don manuel): tax-free up to 31,865 EUR per parent per child every 15 years.
.Family loan: interest-free loan from relatives, declared above 5,000 EUR.
.Employer profit-sharing: early release for main-residence purchase.
.Sale of a previous property: proceeds and capital gain.

5. How to calculate your borrowing capacity

Borrowing capacity depends on your net income, the duration you choose and the interest rate at signature. The simple formula is straightforward.

Maximum monthly payment = net monthly income x 35%

Example: with 3,500 EUR net per month, the maximum monthly payment is 1,225 EUR (across all credits, insurance included). Translate that into a loan amount using the rate and duration.

Borrowing capacity examples

Net income	Max payment	20-year capacity	25-year capacity
3,000 EUR	1,050 EUR	~185,000 EUR	~215,000 EUR
4,000 EUR	1,400 EUR	~245,000 EUR	~285,000 EUR
5,000 EUR	1,750 EUR	~305,000 EUR	~355,000 EUR
6,000 EUR	2,100 EUR	~370,000 EUR	~430,000 EUR

Estimates based on 3.40% over 20 years and 3.44% over 25 years, excluding borrower insurance and other credits.

Watch the impact of insurance. A 0.30% insurance premium on a 250,000 EUR loan adds about 62 EUR per month over the full amortisation. That counts inside your 35% taux d'effort.

6. Borrower insurance and the Lemoine Law

Borrower insurance (assurance emprunteur) is practically mandatory: no bank lends without it. It protects both you and the lender against death, total permanent disability (PTIA), temporary work incapacity (ITT) and permanent invalidity (IPT or IPP).

Loi Lemoine: switch insurance any time, no fees

Loi n. 2022-270 (Lemoine Law) of 28 February 2022 allows borrowers to terminate their group insurance and switch to a delegated contract at any time, without notice and without fees, as long as the new contract offers equivalent guarantees. The right was effective for new loans on 1 June 2022 and was extended to outstanding loans on 1 September 2022. Indicative savings on a 250,000 EUR loan over 20 years run between 5,000 and 15,000 EUR. See our full Lemoine Law guide for the procedure and template letter.

Group insurance vs delegated insurance

.Group insurance (assurance groupe): the bank's own contract, 0.30% to 0.50% of capital per year.
.Delegated insurance (delegation): third-party insurer, 0.10% to 0.25% of capital, usually better for healthy borrowers under 45.
.Equivalence is checked against the CCSF reference list of 18 criteria.

7. Notary fees, guarantee and total costs

Beyond the property price and the bank's interest, several fixed costs add up. They are not optional and they are not financed by most banks, which is why the deposit usually has to cover them.

Cost	Amount	Notes
Notary fees (existing property)	7 to 8% of price	Mostly transfer duties (droits de mutation), source: notaires.fr
Notary fees (new build VEFA)	2 to 3% of price	VAT included in the price, lower transfer duties
Bank guarantee (caution or hypotheque)	1 to 2% of loan	Caution Credit Logement most common, partly refundable
Bank arrangement fee (frais de dossier)	500 to 1,500 EUR	Negotiable, sometimes waived
Broker fee (optional)	1% of loan or fixed	Paid at signature
Borrower insurance	0.10 to 0.50% per year	Loi Lemoine switch possible at any time
Home insurance (mandatory)	From 200 EUR per year	See our home insurance guide
Document translation (non-residents)	200 to 400 EUR	Sworn translator (traducteur assermente)

Total extra costs: budget 10 to 12% of the property price on top of the price itself for existing properties, and 4 to 6% for new builds. On a 300,000 EUR resale apartment, that is roughly 30,000 to 36,000 EUR of fees and guarantees.

8. Documents required (residents and non-residents)

Lenders ask for roughly the same documents from everyone, but non-residents have additional translation requirements. Gather everything early; the process moves faster if you are not chasing paperwork at the last minute.

Residents

French national ID or passport
Last 3 payslips + last 2 tax notices (avis d'imposition)
Last 3 bank statements (all accounts)
Employment certificate + CDI contract
Compromis de vente
Existing loan statements (if any)

Non-residents

Passport (and visa/residence permit if applicable)
Tax returns from country of residence (2 to 3 years)
3 to 6 months of bank statements (translated)
Employment contract or business accounts (3 years)
Proof of address in country of residence
Compromis de vente
RIB of the French current account

Certified translation requirement. Documents in any language other than French must be translated by a sworn translator (traducteur assermente) listed at your local Court of Appeal. Budget 200 to 400 EUR for a typical file. The Court of Cassation maintains the public list at courdecassation.fr.

9. The five-step purchase process

Pre-approval (1 to 2 weeks)

Get a written simulation from at least three banks (your bank + two others) or a courtier. The simulation should include nominal rate, TAEG, borrower insurance, guarantee type and fees. Pre-approval makes sellers and estate agents take your offer seriously.

Property search and offer (1 to 3 months)

Once your offer is accepted, you sign a compromis de vente at the notary or agency. You have a 10-day cooling-off period (article L271-1 Code de la construction et de l'habitation) during which you can withdraw without penalty.

Formal loan offer (3 to 6 weeks)

The bank issues the formal offre de pret. Article L313-34 of the Code de la consommation gives you 11 mandatory acceptance days; you cannot sign before day 11. Use this window to challenge the borrower insurance offer or negotiate a final discount.

Acte authentique at the notary (1 to 2 weeks scheduling)

Final signature at the notary. The bank releases funds, the notary pays the seller, you receive the keys. The acte authentique is registered with the public land registry (service de la publicite fonciere).

Optimise after signature (Lemoine switch + tax filing)

Switch borrower insurance at any time under Loi Lemoine for fresh savings. File the property in your annual tax return (taxe fonciere is owed every year from the year after purchase).

10. Negotiating rates and conditions

A French mortgage is negotiable. Banks publish a scale (bareme) every month but the relationship manager has discretion within boundaries. Here is what is realistic to push for.

Easy wins

Nominal rate (0.10 to 0.30 pt off bareme)
Arrangement fee waived or halved
Borrower insurance discount
Early repayment penalty (IRA) capped at 3% of capital
Modulation clauses (payment flexibility)

Harder

Switching from caution to no guarantee
Duration above the 25-year cap
0% deposit (100% financing)
Lower deposit for non-residents

Five practical levers

.Show competing offers. Bring written simulations from at least two other banks.
.Use a courtier. They know each bank's scale and can extract the discount you would not get alone.
.Clean accounts. No overdraft, regular savings, no gambling lines on the last 3 statements.
.Raise the deposit. Moving from 10% to 20% can be worth 0.15 to 0.25 pt off the rate.
.Domicile your salary. Banks may offer a small discount in exchange (no longer mandatory since the Sapin 2 law).

11. PTZ and other state-aided loans

On top of the main mortgage, several state-aided complementary loans can reduce the cost of borrowing. The PTZ is the most common; PAS, PEL and Action Logement loans also exist for specific profiles.

PTZ 2026 (Pret a Taux Zero)

.Who: first-time buyers of their main residence (no ownership in the last 2 years).
.What: interest-free loan, complementary to the main mortgage, repaid after a deferral period of 5 to 15 years.
.Where: the 2025 Finance Law widened access from 1 April 2025 to the whole national territory for new builds, with maximum loan shares up to 50% in Zone A.
.How much: share of the operation between 10% and 50% depending on income tranche and zone.
.Sources: Service-Public.fr fiche F10871 and ANIL.org (national housing information agency).

Other state-aided loans

.PAS (Pret Accession Sociale): for households below income ceilings, eligible for the APL housing benefit.
.Pret Action Logement: up to 30,000 EUR at 1% for employees of private-sector companies of 10+ staff.
.Pret Eco-PTZ: zero-interest loan up to 50,000 EUR for energy renovation, combinable with the PTZ.

12. Frequently asked questions

Can a foreigner get a mortgage in France in 2026?

Yes. France places no restriction on foreign property ownership and most retail banks (BNP Paribas, Societe Generale, Credit Agricole, BPCE, CIC) lend to non-residents. Typical conditions for non-residents: 20-30% down payment, documented income (often three years), and a French bank account to receive the funds and run the direct debit. Loans are still subject to the HCSF debt-to-income cap of 35% and a 25-year maximum duration.

What are mortgage rates in France in 2026?

Per the Banque de France monthly statistics, rates on new housing loans to households have moved between roughly 3.0% and 3.5% during the first quarter of 2026, depending on duration and borrower profile. Indicative averages: around 3.27% over 15 years, 3.40% over 20 years and 3.44% over 25 years, with best profiles closer to 2.90-3.10%. Always check the current month on banque-france.fr/en/statistics for the latest figure.

How much deposit do I need for a French mortgage?

French banks usually expect 10% minimum for residents (to cover notary fees and guarantee costs) and 20% as the comfortable level. Non-residents and expat buyers are typically asked for 20-30%. Profiles with a 30%+ deposit get the strongest rate negotiation.

What is the HCSF 35% debt-to-income rule?

The Haut Conseil de Stabilite Financiere (HCSF) Decision n. 2021-7 caps the total debt service ratio (taux d'effort) at 35% of net income, borrower insurance included. The decision also caps loan duration at 25 years (up to 27 years for off-plan purchases with deferred amortisation). Banks may apply a 20% flexibility margin on the production of new loans, but most files stay inside the cap.

How much are notary fees when buying property in France?

On existing (older) properties, total notary costs run 7 to 8% of the sale price. On new builds (VEFA) they drop to 2 to 3% because transfer duties are lower. The bulk is transfer tax owed to the public treasury (droits de mutation), the notary's actual fee (emoluments) is only 0.8 to 1%. Source: Conseil Superieur du Notariat (notaires.fr).

Can I switch my borrower insurance under the Lemoine Law?

Yes. Loi Lemoine n. 2022-270 of 28 February 2022 lets you switch (resilier) your borrower insurance at any time, without fees and without notice, as long as the new contract offers equivalent guarantees. The law became effective for new loans on 1 June 2022 and for outstanding loans on 1 September 2022. Indicative savings on a 250,000 EUR loan over 20 years run between 5,000 and 15,000 EUR depending on age and profile. Full details in our Lemoine Law guide.

Do I need a French bank account to get a mortgage?

Practically yes. Lenders release funds to a French current account (compte courant) and collect monthly instalments by SEPA direct debit. Opening an account as a non-resident is possible at most retail banks and at the foreign branches of HSBC Continental Europe; budget one to two weeks. Online-only banks like N26 or Revolut are fine for daily spending but are usually not accepted as the mortgage settlement account.

Can I borrow without a permanent contract (CDI)?

Difficult but possible. Self-employed professionals, contractors and CDD holders can borrow with three years of certified accounts or stable income, a higher deposit (usually 20%+), and sometimes a co-borrower in CDI. Civil servants and regulated professions (doctors, lawyers, notaries) are treated as low-risk profiles even without a long history.

Should I use a mortgage broker (courtier) in France?

A courtier negotiates with multiple banks at once, knows which lenders accept non-residents or specific profiles, and often gets a discount versus the bank's posted rate thanks to volume. Fees are typically 1% of the loan amount or a fixed sum (1,000 to 3,000 EUR), paid only at signature. Brokers are regulated by ORIAS (orias.fr) and must show their registration number.

What is the PTZ (zero-interest loan) in 2026?

The Pret a Taux Zero is a complementary state-subsidised loan for first-time buyers of their main residence, capped by income and zone. The 2025 Finance Law widened access again from 1 April 2025 to cover the whole national territory for new builds (not only Zone A and B1), with maximum loan shares up to 50% in Zone A. Income ceilings depend on household size and zone. Source: service-public.fr fiche F10871 and anil.org.

How long does a property purchase take in France?

Plan three to four months for residents and four to six months for non-residents. Typical timing: mortgage pre-approval one to two weeks, property search one to three months, signed sale agreement (compromis de vente) plus the mandatory 10-day cooling-off period, mortgage final offer with 11-day legal acceptance window, and roughly three months between compromis and the final deed (acte authentique) at the notary.

What is the usury rate (taux d'usure) and why does it matter?

The taux d'usure is the maximum legal effective rate (TAEG) a bank can charge for a given loan category. Banque de France publishes it monthly per loan duration (under 10 years, 10 to 20 years, 20 years and over). If the all-in cost of your loan, including borrower insurance and fees, exceeds the usury rate, the bank legally cannot lend. Source: banque-france.fr/statistiques/taux-et-cours/taux-dusure.

Authoritative sources

Banque de France, monthly rates statistics (CCFA) and taux d'usure - banque-france.fr/en/statistics
Haut Conseil de Stabilite Financiere, Decision n. 2021-7 - hcsf.gouv.fr
Service-Public.fr fiche F10871, Pret a Taux Zero - service-public.fr/F10871
Service-Public.fr fiche F22094, Pret immobilier general framework - service-public.fr/F22094
Conseil Superieur du Notariat, notary fees calculator - notaires.fr
ANIL, national agency for housing information - anil.org
Loi n. 2022-270 (Lemoine) on borrower insurance - legifrance.gouv.fr

Related guides

Lemoine Law: switch your borrower insurance

Procedure, equivalence test, savings

Home insurance in France

Mandatory coverage for owners and tenants

Online vs traditional banks in France

Pick the right account to host your mortgage

Reduce your banking fees

Cut monthly account costs while servicing a mortgage

Hamon Law: cancel insurance after the first year

Free cancellation rules for home and auto

Life insurance in France

Build the deposit and complement the mortgage

Livret A savings account

Top regulated savings account for your deposit

Personal loan guide

Top-up financing options

Disclaimer: The information in this article is for informational purposes only and does not constitute personalised financial or legal advice. Mortgage rates, conditions and tax rules change regularly. For your specific situation, consult your bank, an ORIAS-registered courtier or a French notary.

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