French mortgage rates explained

Last reviewed 22 October 2026

Sources: Crédit Logement/CSA observatory, August 2026 figures published 31 August 2026; Banque de France, July 2026 figures published 7 September 2026.

What are French mortgage rates now?

The two most quoted measures of the French market are the monthly Crédit Logement/CSA observatory and the Banque de France statistics on new loans. Both describe the whole market rather than loans to non-residents, and neither is a rate you can apply for.

Longer loans cost a little more. The 25-year average sat about a fifth of a point above the 15-year average in August 2026, and the average term across all loans was 252 months, or 21 years.

Sources: Crédit Logement/CSA observatory, August 2026; Banque de France, July 2026. Market averages, not offers.

Why do we not publish a best-buy rate table?

Because nobody can offer you an average. A French lender prices a loan once it has seen the whole file: your deposit, your income and existing debts, your age, the term and the borrower insurance it will accept. A table of headline rates would also leave out the fees and insurance that sit around the rate, which is why the figure to compare is the TAEG explained below.

We show market averages with their source and month so you can see where the market sits. A rate you can rely on only exists once a lender has assessed your case and issued a loan offer.

What decides the rate you are offered?

Lenders look at the whole file, not one number.

• The term. Longer loans carry slightly higher average rates. The HCSF rule caps the term at 25 years, or 27 years where a deferral covers a new build or major works.
• Your deposit. France has no legal cap on loan to value, but the lenders we work with usually want a deposit of around 30%. A bigger deposit widens the choice of lender and strengthens a borderline case.
• Income and existing debts. All your loan repayments, borrower insurance and any mortgage you already have included, must stay within 35% of your income. Many lenders reduce non-euro income by 10% to 20% for exchange rate risk.
• Age and insurance. The lenders we work with generally want the loan repaid by about age 70. Compulsory borrower insurance counts in the TAEG, so its cost affects whether a loan fits under the usury cap.
• Your relationship with the bank. Opening a French account with the lender is standard. Some lenders also want savings or investments held with them, for example 12 to 24 months of repayments, and private banks often ask for this on projects over €1m.

Sources: HCSF measure; deposit and age guidance from the criteria of the lenders we work with, January 2026; bank account and savings practice from French Private Finance, June 2026. Market practice, not law.

What is the difference between the nominal rate and the TAEG?

The nominal rate is the interest rate on the loan. The TAEG (taux annuel effectif global) is the all-in annual rate. It adds the lender’s fees, compulsory borrower insurance and the cost of the guarantee or mortgage charge to the interest, much like the APR on a UK loan.

Compare offers on the TAEG and not the nominal rate. The averages above exclude insurance, so the TAEG on a real offer will be higher than them. The TAEG also matters for a second reason: it is the figure the usury cap is tested against.

What is the taux d’usure?

The taux d’usure is the highest TAEG a lender may legally charge. It is set each quarter at the average effective rate for each type of loan plus one third, and published in the Journal officiel. A loan whose TAEG would go above it cannot be made however strong the rest of the case is.

A separate cap applies to variable-rate loans. It was 5.28% in the third quarter of 2026.

Sources: economie.gouv.fr on the usury rate; Banque de France for Q3 2026; Q4 2026 as reported by Moneyvox from the Banque de France notice of 25 September 2026.

Why does the usury cap matter for older borrowers?

Because borrower insurance counts inside the TAEG. As a rough illustration, the average 20-year rate was 3.27% in August 2026 and the cap for fixed loans of 20 years or more is 5.40% from 1 October 2026. That leaves a little over two points for insurance, fees and the guarantee together. Where insurance is expensive, as it can be for older borrowers, the cap can decide whether a loan is possible at all.

A few rules help you keep the cost of cover down.

• You can choose your own insurer instead of the bank’s policy, the délégation d’assurance, as long as the guarantees are equivalent. The bank cannot change your rate or charge a fee for accepting it.
• Under the Loi Lemoine you can switch insurer at any time. There is no health questionnaire if your insured share is €200,000 or less and the loan ends before your 60th birthday.
• The AERAS convention helps people with serious health risks obtain cover within limits set by the convention.

Age limits apply as well. The lenders we work with generally want the loan repaid by about age 70, and few take new borrowers over 65.

Sources: economie.gouv.fr on changing borrower insurance and on the health questionnaire; AERAS.

Fixed, capped variable or interest only?

Fixed rates dominate. In July 2026, 99.4% of new French home loans were fixed rate, so your euro repayment stays the same for the whole term.

A capped variable loan, the taux capé, follows Euribor but its movement is capped at one or two points up or down. These loans are increasingly rare.

An interest-only loan, the prêt in fine, repays the capital in one sum at the end. It is backed by a pledged assurance-vie policy or other investments, carries a higher rate and runs for about 7 years on average. For non-residents it is mainly offered by private banks, usually with assets equal to the loan or pledges from about €1m.

A bridging loan, the prêt relais, usually lends 60% to 80% of the value of a property you are selling, often about 70%, for one to two years. We cannot say in general whether a French lender will offer one against a property outside France, so do not build a plan around one.

Sources: Banque de France, July 2026; Pretto on prêts in fine.

What fees come with a French mortgage?

The main lender fee is the frais de dossier, the arrangement fee. It is usually 0.5% to 1.4% of the loan and is often capped at around €2,000 to €2,500. The average was €1,899.68 on a €200,000 loan in March 2026. It is included in the TAEG.

Source: Meilleurtaux, 1 March 2026.

The lender also takes security over the property. For non-resident buyers that is usually a hypothèque or an HLSPD, paid through the notaire. Our buying costs guide covers those costs.

Broker fees are separate. The fee for our mortgage service is a success-only 1.9% of the loan, which you agree in writing before any work starts. In France the rules stop a registered broker taking payment before your loan is granted. How French Finance is paid is set out on our regulatory information page.

Can I repay a French mortgage early?

Yes. Early repayment charges, the IRA (indemnités de remboursement anticipé), are capped by law at the lower of 6 months’ interest on the amount repaid and 3% of the capital outstanding. For example, repaying €100,000 of a loan at an illustrative 3.30% would cost at most €1,650 in charges, because six months’ interest is less than 3% of the capital outstanding.

• A contract may refuse partial repayments of 10% or less of the original loan unless you are repaying in full.
• No charge applies when the property is sold because of a job relocation, or the death or forced cessation of work of the borrower or their spouse.
• The charges can be negotiated before you sign, so raise them when the offer is being prepared.

Source: economie.gouv.fr on early repayment, under articles L313-47 to L313-49 and R313-25 of the Code de la consommation.

How does the exchange rate affect my repayments?

Your loan and repayments are in euros. If your income is in pounds, dollars or another currency, each monthly payment costs more when that currency falls against the euro and less when it rises.

Many buyers fix an exchange rate for the deposit and costs, and some set up regular transfers for the monthly repayments. We can introduce you to one of the leading, reputable currency transfer providers we work with. We only introduce firms that hold the registration their work needs, and French Finance never handles or holds client money. The repayment calculator shows an estimate in your own currency next to the euro payment.

Which rate figures do we track?

Our calculators read the figures below from our figures table. Each one carries the date it applies from and its source.

How French Finance helps

We prequalify your case against the criteria lenders actually use, then introduce you to one of the leading, reputable specialist mortgage brokers and lenders we work with, who works through to a firm loan offer. Our how it works page sets out each step.