The private individual
The classic mortgage
By far the most used route for building a house. The loan generally funds 70 to 90 % of the total cost, land, construction and ancillary costs. The conditions depend chiefly on the debt service ratio, the deposit and the term.
| Rate | 3.10 % on average on new housing loans excluding renegotiations in May 2026 according to the central bank, after a peak of 3.59 % in January 2024. The rate offered departs from that average with the term, the profile and the bank. Fixed or variable, with a general preference for fixed in uncertain times. |
|---|---|
| Term | 15 to 25 years. Beyond 25 years the conditions are very restrictive. |
| Minimum deposit | 10 to 15 % of the total cost is recommended, covering legal fees and the guarantee. Some profiles can obtain finance without a deposit. |
| Security | A charge on the property or a bank guarantee. The guarantee costs less than a charge and requires no discharge on resale. |
| Drawdown | In several tranches as the works advance: foundations, weathertight, wind-tight, handover. The architect or the contracts manager certifies the progress. |
The zero-interest loan
The zero-interest loan was first refocused in 2024 on first-time buyers in tight markets, before being reopened: for loan offers issued from 1 April 2025 it covers every new dwelling, including houses, across the whole country. In the existing stock it remains reserved to the looser market areas, subject to works representing at least 25 % of the total cost. It funds only part of the project, up to 50 % for the lowest income band, 40 % for the intermediate bands and 20 % above, and must accompany a principal loan.
- Income ceilings by area and household composition
- No interest; only the capital is repaid
- A deferred repayment period is possible, five to 15 years
- Can be combined with the classic loan, the retrofit loan and certain local support
Shared-equity tenure
This separates ownership of the building, bought by the occupier, from ownership of the land, retained by a land trust. That separation reduces the purchase price by 30 to 40 % in tight markets. In exchange the owner pays a modest monthly charge to the trust and undertakes to resell at a controlled price.
The property developer
The development loan
The reference finance for residential and commercial development. A short-term loan, 12 to 36 months, funding 60 to 80 % of the total cost, land, works, fees and finance costs.
| Conditions of access | Pre-sales of 40 to 50 % of turnover before work starts. Developer equity of 10 to 20 % of the total cost. A forecast margin of at least 8 % of turnover. |
|---|---|
| Cost | A variable rate at the three-month interbank rate plus a bank margin of 1.5 to 3.5 %. That interbank rate stood at 2.51 % in mid-August 2026, placing the cost between 4 and 6 % according to the profile of the operation. Unlike consumer credit, development lending is not the subject of public statistics: this range is a market observation, to be checked with the institutions. Arrangement fees 0.5–1 %, commitment fee 0.3–0.5 %. |
| The completion guarantee | Mandatory for any project sold off plan. Taken out by the bank or an insurer, it guarantees completion even if the developer fails. |
| Drawdown | Progressive, against the contractors' payment applications endorsed by the design team. The developer pays the contractors only what the bank releases. |
Crowdfunding alongside
Crowdfunding lets the developer raise complementary equity, often 5 to 15 % of the total cost, from private investors at a cost of 8 to 12 % a year. It is used to supplement classic equity, never as a substitute for bank credit.
The commercial investor
For offices, retail, hotels or logistics warehouses, financing takes more sophisticated forms:
| Corporate finance | The company or investor funds the project from its own resources or its overall borrowing capacity. Simple, but it ties up the company's financing capacity. |
|---|---|
| Asset finance | The loan is secured on the value of the asset. The loan-to-value ratio is generally 50 to 70 % for commercial property. Rate: the interbank rate plus 1.5 to 3 %. Term: 5 to 15 years according to the nature of the asset. |
| Club deal | Co-investment between two and ten investors for a project of intermediate size, 5 to 50 M€. Each contributes a share of the equity, structured through a special purpose vehicle. |
| Property investment funds | Listed and unlisted property funds and debt funds for large projects. Risk is pooled, but structuring takes time and governance constraints are substantial. |
The local authority
Local authorities have specific sources for their public facility projects: schools, sports halls, libraries, roads and services.
| State deposit institution loans | The preferred long-term source. Terms of 20 to 40 years at subsidised rates indexed to regulated savings. Funds public facilities and social housing through the landlords. |
|---|---|
| The rural equipment grant | A central grant for rural municipalities. A subsidy rate of 20 to 50 % according to the project and the envelope available. Determined by the prefecture, with a decision period of three to six months. |
| The local investment support grant | For structuring projects: environmental transition, accessibility, resilience. A rate of 20 to 40 %, decided at regional prefecture level. |
| European funds | For projects eligible under European policies. Co-financing up to 50–60 %, with substantial delay and administrative complexity. |
| The authority's own resources | The share funded from its own revenue. Constrained by budget balance rules and debt ratios. |
| Source | Amount |
|---|---|
| Subsidised state loan | 1,250,000 €, 50 % |
| Central equipment grant | 500,000 €, 20 % |
| Regional grant | 250,000 €, 10 % |
| The municipality's own resources | 500,000 €, 20 % |
Articles liés : Financing a property project · The development loan · Public grants and subsidies for construction
Cost estimates, pricing schedules, development appraisals, summary notes. Produce in minutes the deliverables you prepare manually today. First project free. → quostra.com
The financing conditions presented correspond to the French market. Rates, ceilings and public grants change every year; check the conditions in force with your bank, your prefecture or your regional services.
The nature of the figures quoted
The percentages and amounts quoted on this page are orders of magnitude for framing, not measurements. They illustrate mechanisms and proportions, and they substitute neither for a tender exercise nor for an estimate prepared on drawings.
Sources: the BT construction cost indices published monthly by INSEE on its 2010 base, used to update the figures · construction cost statistics from SDES, the statistical service of the ministry responsible for construction · regulatory texts published in the Journal officiel and consolidated on Légifrance for the requirements cited.