Financing your property purchase

The maximum debt-to-income ratio for a mortgage is 35% of your net income, borrower's insurance included. This rule, set by the HCSF (High Council for Financial Stability), comes with a loan term capped at 25 years. Banks have a flexibility margin covering 20% of their loan files.

To borrow 200,000 € over 20 years at a rate of around 3.5%, aim for a monthly payment of about 1,160 €, i.e. a net income of around 3,300 € per month (the 35% rule). Over 25 years, the payment drops to about 1,000 €, for an income of around 2,900 €.

A 110% financing covers the price of the property plus the ancillary costs (notary fees, guarantee fees, sometimes arrangement fees) without any personal down payment. It remains possible but rare: it is reserved for solid profiles (stable income, sound management, residual savings) and a controlled debt-to-income ratio.

To obtain a mortgage: calculate your borrowing capacity, build up a down payment, compare banks (or use a broker), put together a solid file, obtain an agreement in principle then the loan offer, observe the 10-day reflection period, and sign at the notary's office for the release of funds.

No French provision sets a minimum deposit: the 10% figure is banking practice, not a rule of law. In practice, budget on the order of 8 to 10% of the price for an existing home and 3 to 4% for a new build, because that is what the bank generally will not finance.

The land lease scheme (bail reel solidaire, BRS, articles L. 255-1 to L. 255-19 of the Construction and Housing Code) lets a household buy the building alone, with a land trust keeping ownership of the land for 18 to 99 years. 5.5% VAT and zoned income caps apply under conditions, resale is controlled, and it can be combined with the zero-rate loan.