French mortgage trends show rising demand for 25-year loan terms

Data from the Observatoire Crédit Logement CSA indicates that nearly half of all new mortgage loans in the third quarter of 2026 reached or exceeded a 25-year duration. This represents a 3.3 percentage point increase compared to 2025.

The trend is particularly pronounced among younger demographics: 55% of borrowers under 35 and 57% of those aged 35-45 are opting for terms of at least 25 years. Borrowers are utilizing longer durations to reduce monthly payments in response to high property prices and rising interest rates.

Currently, the Haut Conseil de stabilité financière (HCSF) mandates a 25-year maximum loan term and caps the debt-to-income ratio at 35% to prevent household over-indebtedness. However, the Fédération bancaire française is advocating for less restrictive regulations, arguing that banks are capable of assessing risks independently, especially for first-time buyers whose incomes are expected to grow over time.

Additionally, the financial barrier to entry is increasing, with the average personal down payment reaching approximately 55,567 euros in September 2026, an increase of about 3,000 euros from the previous year.