Mortgage rates in France

How mortgages work in France

French mortgages (prêt immobilier / crédit immobilier) are predominantly fixed rate. Unlike Portugal or Spain, variable-rate borrowing is uncommon: French banks price in the rate risk and most borrowers prefer the certainty of a fixed payment.

The taux d'usure is unique to France: it is the maximum APR (TAEG) that any lender can charge, set monthly by Banque de France. In 2022–23, when ECB rates rose faster than the ceiling adjusted, some borrowers found themselves temporarily locked out of the market — a French-specific phenomenon worth understanding. The ceiling now adjusts monthly rather than quarterly, reducing this risk.

The notaire in France plays a dual role, acting for both buyer and seller. Their fee is fixed by law at approximately 1% (above the transfer taxes they collect) and cannot be negotiated. Budget 7–10% total for buying costs.

Getting a mortgage as an expat in France

France places no legal restrictions on non-resident property ownership, and the mortgage market is broadly accessible to foreign buyers. That said, French banks are cautious with non-resident applicants and understanding where that caution shows up will help with preparation.

LTV limits and the 35% income rule

French lenders typically offer 70–80% LTV to EU nationals and residents. For non-EU nationals, the maximum is often 50–70%, depending on the bank and borrower profile. French law caps total monthly liabilities — including all mortgages, rent, and loan repayments — at 35% of gross monthly household income. This is a hard legal limit, not a lender preference. Calculate your maximum monthly payment from this figure before approaching any bank.

Fixed-rate terms

One of the most distinctive features of French mortgages is the availability of long fixed-rate terms — typically 15 to 25 years — at a consistent rate for the full duration. The maximum term for non-residents is 25 years. For buyers used to shorter fixed periods elsewhere, this is a meaningful advantage at current rate levels.

Which banks lend to non-residents?

Major banks with established non-resident programmes include BNP Paribas, Crédit Agricole, Société Générale, and HSBC France. Non-residents are generally limited to the larger national banks; regional lenders rarely extend mortgage products to foreign buyers without an existing account relationship.

How foreign income is assessed

Foreign income is accepted, but French banks assess it thoroughly. Payslips, tax returns, and bank statements covering the last two to three years are standard requirements. Self-employed applicants need audited accounts covering at least three years. Income in non-euro currencies may be assessed conservatively.

What documents are needed

A standard non-resident application typically requires:

• Passport or national ID
• Proof of address in your country of residence
• Last three months' payslips (or three years' accounts for self-employed)
• Last two to three years' tax returns
• Last three months' bank statements
• Details of existing loans or credit commitments
• Property details and the compromis de vente if already signed

All documents not in French must be accompanied by a certified translation.

Using a mortgage broker

A courtier en crédit (mortgage broker) is worth considering for non-resident applications. Brokers have relationships with banks experienced in lending to foreign buyers and are typically paid by the bank rather than the borrower.

More information: Getting a mortgage in France in 2026

Buying costs beyond the mortgage

Budget 7–10% of the purchase price. New-build properties attract lower costs, typically 2–3%.

Cost	Amount	Notes
Droits de mutation	~5.8%	Transfer tax on resale property; included within frais de notaire
Notaire fees	~1%	Fixed by law; collected on top of transfer taxes
Estate agent	0–5%	Usually paid by seller; often included in listed price
Mortgage broker fee	0–1%	If used; typically paid by the bank
Total estimate	7–10%	Resale property; lower for new builds

Buying costs cannot be included in the mortgage. The full amount must be available as cash.

More information: Buying property in France