France's mortgage rates hover above 3% as banks tighten lending criteria

In June 2026 the average rate for a 20‑year mortgage in France stood at about 3.40%, up from the 3.12% level seen in late 2025. Only a limited number of borrowers with strong profiles—high income, substantial down‑payment and solid savings—have secured sub‑3% deals, such as 2.98% on a 20‑year loan cited by Meilleurtaux. Banks are using the 10‑year French OAT yield rather than the ECB policy rate to set their margins, and lenders like Société Générale have launched a blanket 3.10% offer to attract customers, pushing overall market rates slightly lower.

Effective 1 July 2026, the legal usury ceiling was raised modestly: 4.07% for loans under 10 years, 4.57% for 10‑20 year loans and 5.29% for terms longer than 20 years. The ceiling is calculated each quarter by adding one‑third to the average market rate. The slight increase expands the window for borderline applicants, especially when external borrower‑insurance is used to lower the total cost of credit.