French Mortgage Interest Rates In 2021 Tips And Advice

Current French Mortgage Rates 2021 – Many people purchasing property in France are surprised to learn that they could qualify for a French mortgage to help them finance their dream home.

French Mortgage Rates 2021

French mortgages have been available to non-resident purchasers for a long time but it is only really in the last 10 years that the market has evolved and more and more French banks are willing to lend to foreigners buying a property in France.

Current Mortgage Interest Rates in France 2021

French Mortgage Rates – Below you will find mortgage rates when buying a home in France.

It is important to stay up to date on what is happening in the mortgage market. Therefore, we will inform you about the French mortgage rates once or twice a month so that you can easily follow where the trend is heading.

The interest rates in the table are only an indication of the interest rates that apply in France. French mortgage interest rates can vary from one borrowing/lending institution to another but also from one region to another.


Mortgage rates 210221My. interestAverage interest rateMax. interest
7 years0.30%0.65%1.71%
10 years0.40%0.75%1.74%
15 years0.58%0.95%1.95%
20 year0.72%1.10%2.16%
25 years0.91%1.35%2.46%
30 years0.78%2.00%2.37%

What types of mortgages are available in France?

French lenders offer three principal sorts of mortgages:

  1. fixed-rate
  2. capped rate
  3. tracker rate

All on a capital repayment basis. French interest-only mortgage rates are possible only are not that common and admittance to them is often regulated by very stern criteria.

French buyers usually favor staying with the mortgage they take when they purchase for the entire time they own the property, so basically, re-mortgaging in France is very limited.

Due to this and due to the French moneylenders’ commitments to lend responsibly, long-term fixed-rate mortgages are remarkably economical and straightforward to come by. A fixed-rate mortgage is precisely that and gives the borrower a fixed rate of interest for the whole span of the mortgage.

A tracker mortgage is a changeable rate mortgage that traces one of the Euribor indexes (Euribor stands for The Euro Interbank Offered Rate) with a bank’s margin affixed to it.  Most ordinarily, the index applied is the Euribor 3 month and the bank’s margin ranges from 1 – 2% on top. With interest rates being very inexpensive currently, borrowers can see the tracker rates more appealing, yet, they should be cognizant that as soon as interest rates rise so will their mortgage amounts.

Nowadays, capped rate mortgages are attractive and are the ideal compatibility between a tracker and a fixed rate. Capped rate mortgages allow borrowers the confidence of identifying that their interest rate (and thus their cyclical mortgage payment) can never rise over a specific amount and provides some of the same versatility and lower interest rates as a tracker mortgage.

Other types of mortgages such as shorter-term fixed rates do exist and guidance should be inquired before adopting any particular mortgage as the specific terms and requirements will differ.

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