Purchasing property in France requires understanding the French mortgage system, known as Prêt Immobilier. The French lending market has unique characteristics, including strict affordability rules, mandatory insurance, and significant notary fees. This comprehensive guide will help you navigate French mortgages and calculate your monthly payments in euros.

Understanding French Prêt Immobilier

French mortgages are highly regulated to protect both borrowers and lenders. The system emphasizes affordability and stability, with strict rules about debt-to-income ratios and mandatory life insurance. Most French mortgages are fixed-rate loans with terms of 15, 20, or 25 years.

Key French Mortgage Terms

Prêt Immobilier: Real estate loan or mortgage
Apport Personnel: Personal contribution or down payment, typically 10-20%
Taux d'Endettement: Debt-to-income ratio, maximum 35% of gross income
Assurance Emprunteur: Mandatory borrower's insurance (life and disability)
Frais de Notaire: Notary fees, typically 7-8% of property price
Frais de Dossier: Application fees charged by the bank
Garantie: Loan guarantee (hypothèque or caution)

The 35% Rule: Taux d'Endettement

French law strictly limits your total debt payments to 35% of your gross monthly income. This includes your mortgage payment, insurance, and any other loans or credit commitments. This rule is enforced by the Haut Conseil de Stabilité Financière (HCSF) and has very few exceptions.

For example, if your gross monthly income is €4,000, your maximum monthly mortgage payment (including insurance) cannot exceed €1,400.

French Mortgage Rates in 2025

French mortgage rates are competitive within Europe and vary based on several factors:

15-year fixed: Typically 3.5-4.2%
20-year fixed: Typically 3.8-4.5%
25-year fixed: Typically 4.0-4.8%

Rates depend on your apport personnel (larger down payments get better rates), your income stability, and the property location. French banks favor borrowers with CDI (permanent employment contracts).

Calculating Your French Mortgage Payment

French mortgages use standard amortization calculations with monthly payments in euros:

Example French Mortgage Calculation

Let's calculate a typical French Prêt Immobilier:

Property price: €350,000
Apport personnel: €70,000 (20%)
Mortgage amount: €280,000
Interest rate: 4.0% annual
Term: 20 years (240 months)
Assurance emprunteur: 0.3% of loan amount annually (€70/month)

Monthly payment (principal + interest): €1,697
Monthly insurance: €70
Total monthly payment: €1,767

Total amount repaid over 20 years: €424,080 (€280,000 principal + €127,280 interest + €16,800 insurance)

Frais de Notaire: French Notary Fees

France has significant notary fees (frais de notaire) that must be paid at purchase. These are not negotiable and include:

Old properties (more than 5 years): 7-8% of purchase price
New properties (less than 5 years): 2-3% of purchase price

For a €350,000 old property, frais de notaire would be approximately €24,500-€28,000. Most of this goes to taxes, with only a small portion being the notary's actual fee.

Apport Personnel: The French Down Payment

French banks typically require an apport personnel (down payment) of:

Minimum 10%: To cover part of the property price
Preferred 20%: Better rates and easier approval
Plus frais de notaire: You must also cover notary fees from your own funds

For a €350,000 property, you would need €70,000 (20%) plus €25,000 for notary fees, totaling €95,000 in available funds.

Assurance Emprunteur: Mandatory Insurance

French law requires borrower's insurance (assurance emprunteur) covering death and disability. This insurance typically costs 0.25-0.40% of the loan amount annually, depending on your age and health.

Since 2022, you can choose your own insurance provider (délégation d'assurance) rather than using the bank's insurance, potentially saving thousands of euros over the loan term.

The French Mortgage Process

The Prêt Immobilier process in France follows these steps:

Compromis de vente: Preliminary sales agreement with 10-day cooling-off period
Mortgage application: Submit to banks with condition suspensive (financing contingency)
Offre de prêt: Formal mortgage offer from the bank
10-day reflection period: Mandatory waiting period before accepting the offer
Acte de vente: Final sale deed signed at the notary's office
Funds release: Mortgage funds transferred to seller

Additional French Mortgage Costs

Beyond your monthly payment and notary fees, budget for:

Frais de dossier: Bank application fees, typically €500-€1,500
Frais de garantie: Loan guarantee costs, 1-2% of loan amount
Taxe foncière: Annual property tax paid by owners
Charges de copropriété: Monthly condo fees if applicable
Assurance habitation: Home insurance, typically €200-€500 annually

Prêt à Taux Zéro (PTZ): Interest-Free Loan

First-time buyers in France may qualify for the Prêt à Taux Zéro (PTZ), a government-backed interest-free loan:

Eligibility: First-time buyers with income below certain thresholds
Amount: Up to 40% of property price for new builds in certain zones
Repayment: Deferred repayment period of 5-15 years, then repay over 10-15 years

Foreign Buyers in France

Non-residents can obtain French mortgages, but face stricter requirements:

Higher apport personnel: Typically 30-40% down payment required
Income verification: Must prove stable income in your home country
French bank account: Required for mortgage payments
Specialist lenders: Some banks specialize in non-resident mortgages

Use Our Calculator for French Mortgages

Our mortgage calculator supports EUR calculations and can help you determine your monthly payments, total interest, and affordability for French properties. Select EUR as your currency and enter your Prêt Immobilier details.

Tips for French Mortgage Applicants

Respect the 35% rule: Ensure your total debts don't exceed 35% of gross income
Save for notary fees: Budget an extra 7-8% beyond your down payment
Shop for insurance: Use délégation d'assurance to find cheaper coverage
Negotiate frais de dossier: Bank application fees are often negotiable
Consider PTZ: First-time buyers should check PTZ eligibility
Get pre-approval: Secure financing before making an offer
Use a courtier: Mortgage brokers can find better rates and handle paperwork

Conclusion

French mortgages (Prêt Immobilier) are highly regulated with strict affordability rules and significant upfront costs. By understanding the 35% debt-to-income rule, budgeting for notary fees, and shopping for the best insurance rates, you can successfully navigate the French mortgage market and secure financing for your property in France.

Ready to calculate your French mortgage payment? Use our calculator with EUR currency to see your monthly payments and plan your Prêt Immobilier.

France Mortgage Guide 2025: Understanding Prêt Immobilier