Homebuyers in France favor longer loans

Half of homebuyers in France are now taking out loans over a 25-year term, which is the maximum duration allowed by the High Council for Financial Stability (HCSF). This trend has raised concerns about the possibility of extending loan terms to 30 years without introducing significant risk.

Rising long-term mortgage rates

According to the Observatoire Crédit Logement CSA, an economic research institute associated with major French banks, nearly half of new mortgages (49.8%) were taken out for more than 25 years during the third quarter of 2026, an increase of 3.3 percentage points compared to 2025. This is the legal limit set by the HCSF to protect borrowers and banks from the risks of long-term loans and excessive housing costs.

Regulations to limit housing costs

The HCSF also limits the "effort rate" for households, or the share of income devoted to housing, to 35%, a measure derived from lessons learned during the 2008 subprime crisis. Despite these regulations, first-time buyers are increasingly relying on long-term loans.

Younger buyers prefer longer terms

According to Michel Mouillart, an economist associated with the Observatoire Crédit Logement CSA, 55% of borrowers under 35 years old took out mortgages for at least 25 years during the third quarter, with the proportion reaching 57% among those aged 35 to 45.

Increased personal contribution

Banks have also increased the personal contribution required from households, averaging 55,567 euros (31% of their income), an increase of 3,000 euros compared to the previous year. This has placed additional pressure on first-time buyers, who are described by Mouillart as "the big losers of the story" due to the increased personal contribution required by banks before granting a mortgage.

Banking federation seeks regulatory change

Despite the current 25-year limit, the French Banking Federation, which includes 320 institutions, estimates that the risks of extending loan terms would remain limited, as banks are already equipped to manage such risks. The federation has called for removing the binding nature of the HCSF regulations, arguing that the current rules create an "administrative view of risk" that disadvantages first-time buyers, whose incomes are lower at the beginning of their professional lives.

Shorter average mortgage duration

According to Mouillart, the actual average duration of a mortgage in France is only 9 years, as buyers often refinance or sell their properties after a short period due to factors such as separation, death, or other life events. The "French-style" credit model, with fixed-rate long-term loans, is considered particularly protective because "the banks bear the risk" and not the borrower.

Flexibility allowed since 2022

The HCSF has already allowed banks to deviate from the 25-year ceiling in certain cases since 2022, up to 20% of their quarterly loan production. As of the beginning of 2026, this rate was mobilized at an average of 17%, according to the HCSF. However, the economic situation has since deteriorated, with the share of first-time buyers among new mortgages slightly declining to 43.9% during the summer, according to the Bank of France.

No immediate regulatory changes

Despite these developments, a change in the rules does not seem to be on the agenda. Last year, deputy Lionel Causse of Renaissance submitted a bill aimed at easing the criteria of the HCSF, including abolishing the 35% income cap, but the text was finally withdrawn because it was "distorted" during discussions in the Assembly.