Planning to buy property in France? Real estate loan rates are predicted to increase by the end of the year. Learn what this means for your mortgage, why rates are going up, and how to get the best deal before rates climb higher.
France Real Estate Loans: Mortgage Rates Climb Again in September 2025—How to Adapt Your Strategy
After a brief respite, the era of declining mortgage rates in France is officially over. As the calendar turns to September 2025, homeowners and property buyers are facing a new reality: more demanding banks, the end of widespread rate discounts, and a resurgence in mortgage rates. Here’s what’s changing—and how you can adapt if you’re looking to secure a real estate loan this autumn.
Mortgage Rates Resume Their Climb
According to Pretto, the leading mortgage broker in France, average rates in September 2025 now stand at:
- 3.12% over 15 years
- 3.23% over 20 years
- 3.33% over 25 years
These figures mark the end of a short-lived downward trend. Waiting in hopes of lower rates is no longer a winning strategy—taking action now is key.
Economic Shifts Influence French Mortgage Rates
So why are rates rising again? Several factors are at play:
- The French 10-year OAT (Obligation Assimilable du Trésor) has jumped to 3.48%. This benchmark, influenced by broader European economic forces and Germany’s significant new debt financing, means France must borrow at higher costs.
- Political uncertainty has further rattled markets. Announcements around Prime Minister François Bayrou’s vote of confidence and looming government instability have caused banks to exercise more caution in their lending.
Tighter Lending: The End of Discounts
August’s renewed caution among banks signaled the end of generous rate discounts, particularly for first-time buyers and those with strong borrowing profiles. Without the fierce competition and special offers of previous months, banks are now more selective, focusing on borrowers who present the least risk and the strongest financial guarantees.
What’s Next for Home Buyers?
Mortgage rates are on track to continue rising throughout late 2025. While a new housing policy seems unlikely amidst economic and political uncertainty, borrowers should brace for a more challenging environment:
- Stricter lending requirements will be the new norm.
- The European Central Bank’s halt on key rate cuts means banks will reassess their rate structures upwards to protect their own margins.
How to Secure the Best Mortgage in a Rising Rate Environment
The rise in interest rates doesn’t mean real estate projects are doomed—it just requires more strategy:
- Shop around: Compare offers from several lenders to snag the most competitive rates.
- Optimize your contribution: A larger down payment improves your profile.
- Explore aid options: Subsidized loans and programs like the PTZ can still make a difference.
France’s mortgage market is entering a new, more demanding phase. While the days of historic-low rates are over, well-prepared buyers can still succeed by adapting quickly and leveraging every available advantage. If you’re considering a real estate loan in France, speed and preparation are your best allies in September 2025 and beyond.
