Banks in France already had strict rules to give a mortgage to high street customers such as the 20% minimum deposit rule. They keep the same rules compared to last year and that is why they are having less trouble than some other countries. If you want to buy in France with a mortgage, you will need to bring 20% deposit and your mortgage repayment can not represent more than 33% of your total income. The European Central Bank (ECB) has taken action to counter the current financial crisis. Together with six other banks, it lowered on Octobre 8th its interest rate from 4.25% to 3.75%. Lowering mortgage cost is the main means for banks to regulate the economy. It is consequently a good time to take a mortgage for those who intend to buy a property in France, as the fixed rate is now as low as 5.10% for a 15-year mortgage.
French mortgage getting cheaper