Mortgages in France in 2026: rates, borrowing capacity, insurance and the PTZ

• 3.32%: average rate on new home loans in September 2026, excluding renegotiations, according to the Banque de France.
• 35% and 25 years: the two limits set by the High Council for Financial Stability (HCSF), with room for exceptions on 20% of loans.
• Borrower insurance can be switched at any time since the Lemoine law, and weighs heavily in the total cost.
• Purchase costs come on top of the price: transfer duties, notary, guarantee, and the down payment goes first to paying them.

A mortgage is often the biggest financial commitment of a lifetime. Before viewing anything, it pays to know how much banks will lend, what each monthly payment will cost and how much cash you will need on signing day. All three can be worked out in advance with a few simple rules. For a purchase in Spain, see our guide to mortgages in Spain.

This guide covers 2026 rates, the HCSF rules and how to calculate borrowing capacity with a worked example, then the down payment and fees, borrower insurance, the zero-rate loan and renegotiation. Figures come from the Banque de France (in French) and service-public.fr. The mortgage calculator works out the monthly payment, total cost and amortization schedule for your own project.

Mortgage rates in France in 2026

According to the Banque de France, the average interest rate on new home loans, excluding renegotiations, was unchanged at 3.32% in September 2026. Banks lent €11.8 billion that month, seasonally adjusted, and outstanding home loans totalled €1,289 billion, up 0.2% over a year.

The average hides wide gaps: the rate you get depends on the term, the down payment, income, job stability and the bank. You should also distinguish the nominal rate, used to calculate interest, from the TAEG, the annual percentage rate, which adds insurance and loan and guarantee fees: the TAEG is the figure to compare between two offers.

The HCSF rules: 35% and 25 years

Since 2022, a decision of the High Council for Financial Stability has been binding on banks. It sets two limits, still in force in 2026:

• Debt-to-income ratio: monthly payments on all the household's loans must not exceed 35% of net income, borrower insurance included.
• Term: 25 years at most, with up to two more years of deferral for a new home or a purchase with works.
• Flexibility margin: each bank may make exceptions for 20% of its new loans, mainly for primary residences and first-time buyers.

The ratio is calculated on regular income: net salaries, pensions, part of any rental income. Existing loans, such as a car loan or consumer credit, count within the 35%: paying them off before applying increases borrowing capacity.

Calculating your borrowing capacity

Borrowing capacity starts from the maximum monthly payment: 35% of net income, minus existing loans. The term and rate then say how much capital that payment repays.

Example: borrowing €200,000 over 20 years

For €200,000 borrowed over 20 years at 3.32%, the monthly payment is about €1,142 before insurance. To stay under 35%, the household needs a net income of at least about €3,260 a month, before insurance, which adds a few dozen euros. Over the whole term, interest costs about €74,000, more than a third of the capital borrowed.

A longer term lowers the payment but raises the total cost, and the rate offered is often higher over 25 years than over 15. The mortgage calculator redoes these sums with your own rate, term and insurance.

Down payment and purchase costs

The price is not the only amount to finance. Purchase costs come on top, wrongly called “notary fees”: mostly transfer duties paid to the département and the municipality, plus the notary's fees and disbursements. For an existing home they often come to 7% to 8% of the price; for a new one, much less. Since April 1, 2025, the Finance Act has allowed départements to raise the transfer duty rate by 0.5 point, from 4.5% to 5%, until spring 2028; most have done so, and first-time buyers purchasing their main home are exempt from the increase.

Guarantee costs, either a guarantee from a specialized body or a mortgage registration, and loan fees come on top. Banks usually ask for a down payment covering at least these costs: borrowing more than 100% of the price is still possible, but rarer. A larger down payment improves the rate and the application.

Borrower insurance

Borrower insurance covers repayment in the event of death, disability or inability to work. It is not compulsory by law, but no bank lends without it. It can be a large part of the total cost, especially for older borrowers.

Since the 2022 Lemoine law, borrowers can switch insurance at any time, free of charge, as long as the new policy offers equivalent cover. The health questionnaire is abolished when the insured share does not exceed €200,000 per person and the loan ends before the borrower turns 60. Shopping around, at signing or later, often lowers the total cost of the loan.

The zero-rate loan (PTZ)

The prêt à taux zéro supplements a standard mortgage for first-time buyers, meaning people who have not owned their main home in the previous two years. According to service-public.fr, checked on September 15, 2026:

• For new homes, it is available in all zones (A bis, A, B1, B2 and C) for offers issued since April 2025.
• For existing homes, only in municipalities in zones B2 and C, with works of at least 25% of the total cost.
• Subject to income limits: the income used is the higher of the reference taxable income of the year before last and the cost of the purchase divided by nine.
• Repayment over up to 25 years, with a deferral of at least two years depending on income. The home must become the main residence.

Renegotiating or refinancing

When rates fall well below your loan's rate, there are two options: renegotiate with your bank, or have another bank take over the loan. It has a cost: early repayment penalties, capped by law at six months of interest and 3% of the outstanding capital, plus new guarantee and loan fees. It pays most early in the loan, when interest makes up most of each payment.

French mortgages: the key points

1. Compare offers on the TAEG, not the nominal rate: it includes insurance and fees.
2. Respect 35% and 25 years, the HCSF limits, unless the bank grants an exception.
3. Plan a down payment for purchase costs, often 7% to 8% of the price for an existing home.
4. Shop around for insurance, at signing and at any time afterwards.
5. Check your right to the PTZ if you are a first-time buyer.

For a buy-to-let purchase, the guide to rental property investing covers yield and tax, and the guide to SCPIs a way to invest in property without a loan.

This guide is educational and is not personalized advice. A loan commits you and must be repaid: check that you can afford the repayments before committing. Figures are those of the Banque de France for September 2026.

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