Mortgage credit is a contract by which a bank advances capital intended to finance the purchase, construction, or renovation of a property, in exchange for a repayment spread over a fixed period, plus interest. This mechanism relies on the analysis of the borrower’s repayment capacity, regulated since 2022 by the standards of the High Council for Financial Stability (HCSF).
Conditional financing: preparing a file when the PTZ or HCSF exemption remains uncertain
Some real estate projects rely on two levers whose acquisition is never guaranteed at the time of setup: the zero-interest loan and the exemption from HCSF criteria. The PTZ has been expanded to new properties across the entire territory, including individual houses, but it only finances part of the operation and must be supplemented by another loan.
The zoning used to determine eligibility evolved in 2025, making it necessary to verify the zone of the targeted municipality rather than relying on an old simulation.
The HCSF framework maintains the rule of a debt ratio capped at 35% including insurance and a maximum duration of 25 years. Banks have a regulated margin for exemptions. At its meeting on September 15, 2026, the HCSF confirmed these criteria, while noting that the use of this margin was increasing in the second quarter of 2026 compared to a year earlier.
An exemption remains at the discretion of the bank, not a right of the borrower. In practical terms, preparing a file that depends on an exemption requires preparing a plan B: identifying a cheaper property, increasing the down payment, or extending the search period. To learn more on the Catherine Immo website, structuring the financing even before searching for the property allows for anticipating these uncertainties.
Debt ratio and borrowing capacity: what the HCSF actually imposes
The calculation of borrowing capacity is based on a simple ratio: the sum of credit monthly payments (mortgage and others) relative to net income must not exceed 35%, including borrower insurance. This ceiling applies uniformly, regardless of income level.
The remaining disposable income is not a regulatory criterion of the HCSF, but banks evaluate it internally. A household with high income and a debt ratio of 34% retains a comfortable disposable income, which facilitates acceptance. Conversely, a household with modest income in the same situation may be denied the loan despite meeting the threshold.
The margin for exemptions that banks have primarily targets first-time buyers and purchases of primary residences. Relying on this margin without guarantee amounts to building a project on a fragile assumption. Two precautions reduce the risk:
- Have a complete simulation done that includes borrower insurance in the calculation of the debt ratio, and not just the loan monthly payment
- Check eligibility for the PTZ based on the updated zoning, as a change in zone can modify the amount eligible for zero-interest financing and thus the overall plan
- Consult multiple banks, since each institution manages its own exemption envelope and one may refuse what another accepts
Borrower insurance and total cost of mortgage credit
Borrower insurance represents a significant part of the total cost of a mortgage. It covers repayment in case of death, disability, or inability to work. The bank systematically offers its own contract (group insurance), but the borrower can opt for a delegation of insurance with an external insurer.
The choice of insurance directly influences the overall effective annual rate (APR), which includes all loan fees. Comparing insurance offers before signing the loan offer allows for reducing the total cost without altering the conditions of the credit itself.
The law allows changing borrower insurance at any time after signing the contract. This possibility remains underutilized, even though it is the most accessible lever to reduce the cost of an ongoing loan.
Minimum guarantees required by banks
The insurance contract must offer a level of coverage at least equivalent to that of the group contract proposed by the bank. Death and total and irreversible loss of autonomy (PTIA) guarantees are systematically required. Temporary incapacity for work (ITT) and permanent disability guarantees are required in almost all cases for the purchase of a primary residence.
Mortgage renegotiation: a lever often forgotten after signing
Comparing loan offers generally focuses on the purchasing phase. Renegotiating the rate during the loan term constitutes a second lever, relevant when market rates fall below the initial contract rate. The credit market saw a resurgence of renegotiations in 2025, indicating that many borrowers found concrete interest in this approach.
Renegotiating your loan is only relevant if the rate difference is sufficient to offset the processing fees and, if applicable, early repayment penalties. The remaining capital must also still be high, making the operation more interesting in the first half of the loan term, a period when the interest portion of each monthly payment is the highest.
There are two options: renegotiate with your current bank (amendment to the contract) or have the loan taken over by another institution. The takeover involves additional fees (release fees for the guarantee, new file), but can lead to more favorable conditions if the original bank refuses to align.
Monitoring the rate of your mortgage after signing is part of financing management. A borrower who no longer compares after the purchase misses out on savings that, over the remaining term of the loan, can represent several thousand euros depending on the amount borrowed and the rate difference obtained.
