The mortgage market reopened in 2025, with production up nearly 30% compared to 2024 according to data consolidated by the ACPR. This recovery does not mean a relaxation of granting criteria. Banks maintain a strict screening of applications, with a default rate remaining around 0.6% of outstanding loans. Understanding the fine mechanisms of mortgage credit allows for the creation of a solid application in this demanding context.
Remaining income and banking scoring: criteria that debt-to-income ratio alone cannot summarize
The debt-to-income ratio capped at 35% (including borrower insurance) remains the current HCSF standard. However, we observe that this ratio is just one filter among others in the analysis of a mortgage application.
The remaining income after monthly payments weighs just as much, if not more, in the final decision. A borrower with high net income may have their application accepted with a debt level close to the cap, whereas a profile with modest income will be rejected well below that. Banks apply minimum thresholds for remaining income that vary according to household composition.
Internal scoring also incorporates job stability, banking history, and account behavior over the last three to six months. A recurring overdraft or rejected direct debits can be enough to degrade an application, even if the theoretical borrowing capacity is sufficient. Several institutions also analyze the consistency between the declared standard of living and the targeted property.
We recommend stabilizing your bank accounts for at least six months before submitting a credit application, and consulting the credits on the Pezenas Immobilier website to explore eligibility parameters based on profiles.
Mortgage loan guarantee: surety, mortgage, or lender’s privilege
The choice of guarantee directly impacts the overall cost of the mortgage, yet it is often treated as an administrative detail.
Mutual surety remains the least expensive solution in most cases. Surety organizations (Crédit Logement, CAMCA, CMH) pool the risk and return part of the contribution at the end of the loan. The initial cost represents a fraction of the borrowed amount, significantly lower than mortgage fees.
A conventional mortgage involves a notarial deed, land registration fees, and, in the case of early repayment, release fees. It is mainly justified when the surety organization rejects the application, which happens with atypical profiles (self-employed, variable income, SCI).
The lender’s privilege (PPD), applicable only to existing properties (not to new constructions or VEFA), offers an intermediate cost due to the exemption from land registration tax. Its limited scope makes it less common.
- Mutual surety: reduced cost, possible partial refund, suitable for stable employee profiles
- Mortgage: mandatory notarial deed, release fees in case of early resale, fallback solution for applications rejected in surety
- PPD: reserved for existing properties, exempt from land registration tax, not applicable to new constructions
Mortgage rates mid-2026: slight increase and trade-off on duration
Mortgage rates experienced a slight increase in the second quarter of 2026, with an average rate reaching 3.30% according to data from the Crédit Logement Observatory. This moderate rise follows a period of relaxation that had brought rates well below this threshold by the end of 2025.
Credit production continues to progress, but at a much more moderate pace (about 3% year-on-year in the first quarter of 2026). The average amount of a mortgage reached 193,948 euros in 2025, reflecting both the residual rise in prices and the extension of durations.
The trade-off between duration and total cost deserves particular attention. Extending the repayment period from twenty to twenty-five years reduces the monthly payment, but the additional interest cost over the entire loan is considerable. We recommend simulating both scenarios and choosing the shortest duration compatible with a comfortable remaining income.
Borrower insurance: delegation and Lemoine law, an underutilized negotiation lever
Borrower insurance represents a significant part of the total cost of a mortgage, sometimes the second-largest item after the interest itself. The Lemoine law allows for the cancellation and change of borrower insurance at any time, at no cost and without waiting for the contract anniversary date.
Comparing borrower insurance contracts can reduce the total cost of the loan by several thousand euros. Group contracts offered by banks apply a uniform rate regardless of age or health status, while delegated contracts individualize pricing.
The minimum guarantees required by the bank (death, PTIA, ITT, IPT) must be included in the alternative contract for the bank to accept the substitution. A cheaper contract but with broader exclusions may be refused.
- Check the equivalence of guarantees before any substitution request
- Compare the cost over the total duration of the loan, not just the monthly premium
- Take advantage of the ability to cancel at any time to renegotiate even during repayment
- Anticipate the health questionnaire: the Lemoine law eliminates this questionnaire for loans where the insured amount does not exceed a certain threshold
Personal contribution and notary fees: calibrating your financing plan
The personal contribution not only conditions the acceptance of the application but also the proposed rate. A contribution covering at least the notary fees (approximately 7 to 8% in the old, 2 to 3% in the new) remains the minimum threshold expected by most institutions.
Beyond this minimum, each additional tranche of contribution improves the rate grid applied. An application financed at 90% does not receive the same conditions as one at 80%. The difference can represent several dozen basis points on the nominal rate.
Notary fees in the old include transfer duties, notary fees, and disbursements. Including these fees in the loan (financing at 110%) remains possible but degrades the risk profile of the application and almost systematically results in a higher rate.
Creating a realistic financing plan requires not exhausting all savings in the contribution. Keeping a precautionary reserve equivalent to a few months of payments protects against unforeseen events and reassures the lender about medium-term solvency.