Real estate credit rates in June 2025: stability and opportunities for borrowers

In the month of June 2025, the real estate credit market in France is showing significant stability. After a period of fluctuations, interest rates seem to be stabilizing, offering attractive prospects for borrowers. This situation is conducive to the realization of real estate projects, whether it is a first acquisition, a rental investment or a loan renegotiation.

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Evolution of real estate rates in June 2025

Mortgage interest rates were relatively stable in June 2025. According to CAFPI data, the average rates observed are as follows:

• 3.04% over 15 years
• 3.15% over 20 years
• 3.28% over 25 years

This stability can be explained in part by the maintenance of the European Central Bank (ECB) key rates and by increased competition between banking institutions wishing to attract new customers.

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Average rates by loan term

Rates vary according to the duration of the loan. Here is a summary table of the average rates observed in June 2025:

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These rates are indicative and may vary depending on the profile of the borrower, his personal contribution, his professional situation and the bank's commercial policy.

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Preferred borrower profiles

Banking institutions pay particular attention to the profile of borrowers. The following criteria are generally valued:

• A significant personal contribution
• A stable professional situation (CDI, civil service)
• A controlled debt ratio (less than 35%)
• Sound management of bank accounts

Borrowers with these characteristics often benefit from more advantageous financing conditions.

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Real estate loan simulation

Before engaging in a real estate project, it is essential to carry out a loan simulation. This makes it possible to estimate the amount of monthly payments, the repayment period and the total cost of the credit.

For example, for a loan of €200,000 over 20 years at a rate of 3.15%, the monthly payment (excluding insurance) would be around €1,130. The total cost of the loan would be around €71,200.

Online simulators, such as those offered by Meilleurfaux or CAFPI, make it possible to quickly obtain these estimates.

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Projections for real estate rates in 2025

Experts agree that rates should remain relatively stable in the coming months. However, there are several factors that could influence this trend:

• ECB decisions concerning key rates
• The evolution of inflation in the eurozone
• The global economic situation

It is therefore recommended that borrowers remain vigilant and keep up to date with market developments.

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How are mortgage rates set?

When you sign up for a Real estate loan, the lending institution applies to you a nominal interest rate (or borrowing rate). This rate represents the bank's remuneration for the service provided, but also a cover against the risk of non-payment.

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The calculation of this rate is based on several key elements:

• The OAT rate (Assimilable Treasury Bond), a reference indicator for the bond market.
• The duration of the credit : the longer it is, the higher the proposed rate.
• The quality of the borrower file : income, professional stability, debt ratio, amount of personal contribution.
• The commercial strategy of banks : some may offer competitive rates to win new customers or reach their quarterly goals.
• The region : yes, rates sometimes vary from one city to another, depending on local competition and demand.

🔎 On average, Real estate rates are lower than those for consumer loans, because they are backed by solid guarantees (mortgages, guarantees, etc.).

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Nominal rate, APR, wear rate: what are the differences?

The nominal rate

It's about “pure” interest rate applied to the capital borrowed. It does not take into account the costs associated with the loan. It is the one that banks generally display in their commercial communication.

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The APR (Global Effective Annual Rate)

The TAEG is a much more comprehensive measure. It includes:

• The nominal rate
• Les application fees
• The cost of borrower insurance
• Les warranty fees
• The possible commissions paid to a broker

💡 The APR makes it possible to objectively compare two loan offers., because it reflects the true cost of credit.

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The wear rate

Defined by Bank of France every quarter, the wear rate Represents the legal maximum rate that an institution can offer to a borrower. If the APR exceeds this threshold, the loan is considered illegal.

In June 2025, wear rates revolve around 6.4% for real estate loans over 20 years and more (source: Bank of France).

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What causes real estate rates to vary?

Les real estate credit rate are influenced by a combination of economic and individual factors. Here are the main levers that can make them evolve:

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The evolution of the market

Rates largely follow the decisions of the European Central Bank (ECB). If the bank increases its key rates to fight inflation, banks pass on this increase to their loans.

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The duration of the loan

The more you borrow on a short period (10-15 years), the lower the rate will be. A loan on 25 years will therefore cost more in interest.

Note: The information in this article is based on data available as of June 2025 and is subject to change. It is recommended that you consult a professional for personalized advice.

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Conclusion

The month of June 2025 offers favorable conditions for borrowers, with stable and competitive mortgage rates. It is essential to prepare your file well, to compare offers and to stay informed of market developments in order to optimize your financing.