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Property financing in 2026: lending criteria and optimisation strategies

Mortgage rates now range between 3.2% and 3.5% depending on the profile. The banks have become competitive again. A strong investor application can negotiate up to -0.4 of a point.

Covesta

Co-founder, Finance and Strategy

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The banks are once again competing to lend on property. Now is the time to present a solid application and negotiate the terms.

Average market rates in 2026

Chart

Average fixed rate by loan term (insurance included)

Executive profile aged 35-45, €50k annual income, 20% deposit.

Source: Observatoire CSA/Crédit Logement, Q1 2026

The banks' requirements

  • Minimum deposit: 10% of the purchase price (notary fees). Above 20%, the terms improve markedly.
  • Debt ratio: 35% maximum including charges (HCSF, the French financial stability council). Special case for investors: rental income counted at 70-100% depending on the bank.
  • Residual income: at least €800 per adult + €300 per child after all expenses.
  • Term: 25 years maximum excluding any deferral. 27 years with a 24-month repayment deferral (in the case of works).

Strategies for optimising your rate

  1. 1A deposit above 20%: the best rate scales apply.
  2. 2Paying your income into the lending bank: often a condition for a discount of 0.1 to 0.2 of a point.
  3. 3Delegated insurance: a potential saving of 50% on borrower insurance by going through a specialist broker.
  4. 4Negotiate the arrangement fees: €700 to €1,200 on average, often negotiable down to zero.
  5. 5Make the banks compete: an IOBSP broker (registered French credit intermediary) gains 0.2 to 0.4 of a point on average.

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