Mortgage rejections linked to income limits

A mortgage loan can be rejected if the borrower's monthly payments exceed 35% of their net income, a rule established by the Haut Conseil de stabilité financière (HCSF) in January 2022. This limit has remained unchanged, but a study by the broker Pretto in May found that about 34,000 financially stable households are excluded each year due to this restriction.

Usury rate limits affect loan approval

Since October 1, 2026, the usury rate — the maximum interest rate allowed for loans — is set at 5.40% for loans of 20 years or more and 4.68% for loans between 10 and 20 years. However, current loan rates are rising faster than these limits. In April, the broker CAFPI found that 14% of loan applications already exceeded the usury rate, making them ineligible for approval.

Down payment requirements influence loan success

While there is no legal requirement for a down payment, banks typically expect at least 7 to 8% of the property's price to cover notary fees. In July 2026, the average down payment was nearly 40,000 euros, with first-time buyers averaging 34,000 euros. Options to meet this requirement include zero-interest loans (PTZ) for first-time buyers, the Action Logement program for private-sector employees, or family donations.

Employment status impacts loan approval

A borrower’s employment status can affect their ability to secure a loan. Those on a fixed-term contract (CDD), in a probation period, or self-employed for only a few months may face challenges. Banks often require a permanent contract (CDI) or multiple financial statements for non-salaried workers. Waiting until the end of a probation period or after an additional fiscal year can improve chances, as can adding a co-borrower with a CDI or providing long-term pay slips and tax documents.

Bank account behavior affects loan eligibility

Repeated overdrafts, incident fees, online gaming expenses, or stacking of renewable credits can signal poor financial management to banks. An entry in the repayment incident file (FICP), managed by the Bank of France, can severely limit access to credit. To recover, borrowers should maintain balanced accounts without overdrafts or rejected deductions for several months. Setting aside a fixed monthly amount for savings can demonstrate financial responsibility. If there is an FICP entry, repaying the debt and requesting its removal is necessary.

Borrower insurance challenges can block financing

Difficulties in obtaining borrower insurance, often due to health issues or high-risk professions, can prevent loan approval. Although not legally required, banks typically insist on it. The Lemoine law of 2022 allows for no health questionnaire if the insured amount does not exceed 200,000 euros per person and the loan ends before the borrower’s 60th birthday. Former cancer or hepatitis C patients have a right to be forgotten five years after successful treatment. The Aeras convention allows for a re-evaluation of the application, and some banks accept alternative guarantees, such as pledging a life insurance contract.