French mortgage glossary, French to English

Terms are grouped by where you will meet them: the loan offer, the costs and the bank's security, the purchase contract, and the people involved. Each French term is followed by the nearest English equivalent.

In the loan offer

Offre de prêtLoan offer

The bank's formal written offer. It must stay valid for at least 30 days, and you can only accept it from the 11th day after receiving it.

FISEEuropean Standardised Information Sheet (ESIS)

The standard summary of the loan's cost and features that the bank gives you before the offer, so offers from different banks can be compared.

Taux nominalNominal interest rate

The interest rate on the capital, excluding insurance and fees. It is the figure quoted in barometers.

TAEGAnnual percentage rate of charge (APRC)

Taux annuel effectif global. The all-in annual cost of the loan, including interest, required insurance, guarantee and fees. It is the rate tested against the legal cap.

Taux d'usureUsury rate

The legal maximum TAEG for each category of loan, set every quarter by the Banque de France. For fixed-rate loans of 20 years and more it is 5.40% from 1 October to 31 December 2026.

Taux d'endettementDebt-to-income ratio

Also called taux d'effort. Total monthly loan repayments, insurance included, divided by net monthly income. French banks must keep it at or below 35% on most loans.

Capacité d'empruntBorrowing capacity

The largest loan your income supports under the 35% ceiling, for a given rate and term.

MensualitéMonthly instalment

The monthly repayment. Offers show it with and without insurance.

Prêt amortissableRepayment loan

A loan where each instalment repays interest and part of the capital, so the balance falls to zero by the end. The standard French mortgage.

Prêt in fineInterest-only loan

Only interest is paid during the term and the capital is repaid in one go at the end, usually backed by investments pledged to the bank.

Taux variable capéCapped variable rate

A variable rate that can only rise by an agreed maximum, often one or two points over the life of the loan.

Différé d'amortissementDeferred repayment

A period at the start when you pay interest only, or nothing, common on new builds paid in stages. It can extend the maximum term from 25 to 27 years.

Tableau d'amortissementAmortisation schedule

The table attached to the offer showing, for each instalment, the interest, capital, insurance and remaining balance.

Prêt relaisBridging loan

A short loan against a property you are selling, to buy the next one before the sale completes.

Domiciliation des revenusIncome domiciliation

Having your salary or other income paid into an account at the lending bank. Since the PACTE law of May 2019 a bank cannot simply impose it: it can only ask for it in exchange for a real, individual advantage, such as a lower rate, and the offer must say whether the loan depends on it.

IRAEarly repayment charges

Indemnités de remboursement anticipé. Capped by law at six months' interest on the amount repaid and at 3% of the capital outstanding. Many offers waive them in certain cases.

Costs and the bank's security

Apport personnelDeposit, own funds

The money you put in yourself. For non-residents it usually covers part of the price plus all purchase costs.

Frais de notairePurchase costs

Often called notary fees, although most of the amount is taxes. About 7–8.5% of the price on an existing property and 2–3% on a new build.

Droits de mutationTransfer taxes

The taxes on a property sale, collected by the notaire. 6.32% of the price in most departments since 2025, 5.81% in the others and for some first-time buyers.

Frais de dossierArrangement fee

The bank's fee for setting up the loan. It counts in the TAEG.

HypothèqueMortgage charge

A charge over the property registered by the notaire, allowing the bank to have it sold if the loan is not repaid.

Hypothèque légale spéciale du prêteur de deniersPurchase lender's charge

The charge a lender takes when its loan pays for the purchase itself. Cheaper than a standard mortgage charge. Known before 2022 as the privilège de prêteur de deniers (PPD).

CautionGuarantee

Either a guarantee company that replaces the mortgage charge in exchange for a fee, rarely available to non-residents, or a personal guarantee given by a partner of an SCI.

MainlevéeRelease of charge

Removing the mortgage charge once the loan is repaid, or on a sale. The notaire handles it and charges a fee.

Assurance emprunteurBorrower insurance

Insurance covering death and disability, required by banks in practice. You can choose an external insurer with equivalent cover and switch at any time.

QuotitéCover share

The share of the loan each borrower is insured for. Two borrowers at 100% each means the loan is fully repaid if either dies.

Délégation d'assuranceExternal insurance

Taking borrower insurance from an insurer other than the lending bank's group.

In the purchase contract

Offre d'achatOffer to buy

Your written offer at a given price. Once accepted, it binds both sides in principle until the compromis is signed.

Compromis de ventePreliminary sale contract

The contract in which buyer and seller both commit to the sale, subject to conditions such as obtaining a loan. A promesse de vente is a variant where only the seller commits and the buyer has an option.

Dépôt de garantieDeposit

Usually 5–10% of the price, paid on signing the compromis and held by the notaire. Called indemnité d'immobilisation in a promesse de vente.

Condition suspensive d'obtention de prêtLoan condition

The clause making the sale conditional on your loan, with the amount, maximum rate, term and a deadline of at least one month. If the loan is refused on those terms, your deposit is returned.

Délai de rétractationCooling-off period

Ten days after receiving the signed compromis during which a buyer of a home can withdraw without giving a reason.

Délai de réflexionReflection period

Ten days after receiving the loan offer during which you cannot accept it. Acceptance before the 11th day is void.

Acte authentiqueFinal deed

The deed of sale signed before the notaire at completion. Ownership passes and the loan funds are released.

ProcurationPower of attorney

A document allowing someone, often a notary's clerk, to sign the compromis or deed for you when you cannot travel.

Déblocage des fondsRelease of funds

The bank paying the loan to the notaire, shortly before completion.

Clause de substitutionSubstitution clause

A clause in the compromis allowing another buyer, typically your SCI, to take your place.

People and institutions

NotaireNotary

A public officer who drafts and authenticates the deed, checks title, collects the taxes and registers the bank's charge. Fees are set by regulation.

Courtier en créditMortgage broker

An intermediary who compares lenders, builds your file and negotiates the offer. Must be registered with ORIAS and may not take any payment from you before the loan is obtained.

IOBSPCredit intermediary

Intermédiaire en opérations de banque et en services de paiement, the legal status of brokers and their agents in France.

ORIASRegister of intermediaries

The public register of insurance, banking and finance intermediaries. Check any broker's number on orias.fr.

HCSFHigh Council for Financial Stability

Haut Conseil de stabilité financière. Sets the binding 35% debt-to-income and 25-year rules for French property lending.

Représentant fiscalFiscal representative

An accredited agent who guarantees the capital gains tax of some non-resident sellers, including UK and US residents, on sales above €150,000 of property held for less than 30 years.

Missing a term? Ask it in the message box of the eligibility check and the broker will explain it with your offer in front of them.