French Mortgage Rates 2026: Best & Worst Regions to Borrow
After a period of rapid increases, French mortgage rates have begun to stabilize in early 2026. Most banks are now offering rates between 3.2% and 3.4%, depending on the loan term, offering some relief to prospective homebuyers. However, this national average masks significant regional variations, meaning the cost of a project can differ substantially based on location.
Regional Rate Differences
According to Cafpi, the average rate for a 15-year mortgage is 3.18%, 3.27% for 20 years, and 3.39% for 25 years, excluding insurance. Borrowers with strong financial profiles can still secure rates between 2.95% and 3.15%. Cafpi anticipates that the arrival of spring will help “maintain rates at a level close to that of January in the coming months,” as reported by Capital.
In January 2026, Normandy offered the most favorable rates for 15-year mortgages at 3.06%, followed by Île-de-France at 3.12% and Grand Est at 3.13%. The rankings shifted slightly for 20-year loans, with Hauts-de-France leading at 3.13%, closely followed by Provence-Alpes-Côte d’Azur and Centre-Val de Loire at 3.16%. For 25-year terms, PACA led at 3.33%, with Île-de-France and Centre-Val de Loire at 3.34%, and Corsica at 3.35%.
Conversely, some regions have the highest rates. Nouvelle-Aquitaine posted 3.35% for 15-year loans, overseas departments reached 3.41% for 20-year terms, and Hauts-de-France climbed to 3.46% for 25-year mortgages. Caroline Arnould, director general of Cafpi, notes that while the regional differences are “relatively contained,” even a few tenths of a percentage point can add up significantly over the long term.
The Role of Regional Banks
The variations in rates are largely attributed to the commercial strategies of regional banks. Unlike large national networks, “regional banks manage their commercial objectives individually and month by month,” explains Arnould. Each institution adjusts its rates based on local market dynamics, the type of clientele it seeks to attract, and the level of competition in its area—greater competition generally leads to better borrowing conditions.
These policies are also subject to frequent change, making it difficult for individuals to compare rates effectively. Utilizing a mortgage broker can provide an up-to-date view of local rates and identify the most competitive banks for a given borrower profile.
Navigating Regional Rate Differences
Many potential borrowers are exploring whether they can secure a better rate by purchasing property in a different region. For primary residences, this option is limited, as “regional banks prefer to finance properties located within their region,” cautions Arnould. Banks are hesitant to take on risk in unfamiliar markets and risk losing the client if they relocate.
However, more flexibility exists for secondary residences or investment properties. Borrowers can approach their regional bank to finance a property elsewhere, as the bank is interested in maintaining the overall client relationship. In some cases, leveraging lower rates in another region can result in savings of up to 0.30 percentage points, a substantial benefit over 20 or 25 years.
Frequently Asked Questions
Can I get a regional bank to finance a property outside of its region?
For secondary residences or investment properties, yes. Banks may be willing to finance properties outside their region to maintain a client relationship.
What is driving the differences in mortgage rates between regions?
The commercial strategies of regional banks, which adjust rates based on local market conditions and competition, are the primary driver of these differences.
How much can regional rate differences impact the total cost of a mortgage?
Even small differences of a few tenths of a percentage point can amount to several thousand euros over the life of a 20 or 25-year loan.
Given the regional variations in mortgage rates, how important is it to shop around and compare offers from different lenders?