French mortgage rates, explained
The rate you read in a headline is not the rate you will get. In France, a mortgage rate is built on your file, and most loans are fixed for the whole term. Here is what sets French rates, why yours depends on your profile, and how to compare properly as a non-resident.
General information. This is not an offer of credit or personalised advice, and no rate is guaranteed. Yann Nachtrieb, registered mortgage broker (COBSP) and insurance broker (COA), and financial investment adviser (CIF), ORIAS no. 26009903.
What sets French rates
French mortgage rates track the cost at which banks themselves borrow, which follows the European Central Bank and the yield on French government bonds (the OAT). When those rise, mortgage rates follow, usually with a few weeks' lag. When they ease, banks compete harder for good files.
On top of that, each bank has its own commercial policy. At the same moment, for the same profile, two banks can quote different terms depending on whether they want to lend this quarter. That is exactly why comparing pays off.
Fixed for the whole term
Unlike the UK, most French mortgages are fixed for the entire term, often 15 to 25 years. The rate you sign is the rate you keep until the end, which makes budgeting simple and shields you from rate rises. Variable-rate loans exist but are far less common.
For a UK buyer used to re-fixing every few years, this is a real difference: in France, you usually set it once.
Rate, cost and what you actually pay
| Term | What it means |
|---|---|
| Headline rate | The best-case rate, for top profiles |
| Your rate | Negotiated for your specific file |
| TAEG | The true cost: rate, insurance, guarantee, fees |
| Non-resident | Often a slightly higher rate and larger deposit |
General, indicative benchmarks. Always compare on the TAEG, the only figure that reflects the real cost. No rate is guaranteed.
Why your rate depends on you
Your rate reflects your deposit, your debt-to-income ratio (capped around 35%), the stability of your income and the term you ask for. As a non-resident, banks often apply a slightly higher rate and ask for a larger deposit, and they treat foreign-currency income with a margin of caution.
A well-presented file still gets a better rate than a weak one. That is a broker’s job: knowing which bank welcomes your profile, and how to present overseas income.
Frequently asked questions
Are French mortgage rates fixed or variable?
Most are fixed for the whole term, which is the norm in France. Variable-rate loans exist but are much rarer. A fixed rate means your payment does not change until the loan ends.
Do non-residents pay a higher rate?
Often slightly, and they are usually asked for a bigger deposit. The exact terms depend on your profile and the bank. Comparing several banks is what narrows the gap.
Will rates go down?
No one can promise that, and be wary of anyone who does. Rather than wait for a perfect rate, build a strong file so you can act on a good window when it appears.
Let’s find your rate.
Book a free 45-minute call, in English, by phone or video. No commitment.