Work out your mortgage borrowing capacity
How much can you borrow? France's High Council for Financial Stability (HCSF) caps the effort ratio at 35% of net income, insurance included. From your income, existing loans, interest rate and term, this calculator estimates your maximum monthly payment, borrowable capital, purchase budget and the total cost of credit. No sign-up, no data stored.
Borrowing capacity: how is it calculated?
The starting point is the debt ratio. Under the HCSF recommendations, the total monthly payment on your loans — borrower's insurance included — must not exceed 35% of your net income. Your maximum monthly payment therefore follows directly from your monthly income, before deducting the payments on loans you are already repaying.
From the monthly payment available for the new loan, we invert the formula for a fixed-instalment amortising loan to recover the borrowable capital: it depends on the interest rate and the term. Extending the term raises the accessible capital but increases the total cost of credit; a higher rate reduces both the usable payment and the capital.
The borrower's insurance, calculated on the initial capital, uses up part of the 35%: it therefore mechanically reduces your borrowing capacity. The total purchase budget is the borrowable capital plus your own down payment.
This estimate is indicative. Beyond the debt ratio, banks assess your remaining disposable income (reste à vivre), the change in housing cost, and the stability and nature of your income. Notary fees are not deducted here: cost them separately to know your real budget.
Frequently asked questions
What is the maximum permitted debt ratio?
The HCSF recommends not exceeding a 35% effort ratio, borrower's insurance included. Banks have limited flexibility to depart from this threshold, reserved mainly for main-residence purchases and strong profiles. Above 35%, loan approval becomes very hard to obtain.
Does borrower's insurance count in the calculation?
Yes. The 35% effort ratio is assessed insurance included. Since insurance is added to the loan payment, it uses up part of your capacity and therefore lowers the borrowable capital. A lower insurance rate (through a delegated policy) mechanically increases your borrowing capacity.
How can you increase your borrowing capacity?
Three main levers: extend the loan term (more capital, but a higher total cost), increase your down payment (the purchase budget rises accordingly), and reduce your other monthly payments by clearing a consumer loan. Negotiating the interest rate and the insurance rate also improves the usable payment.
Are notary fees included in the purchase budget?
No. The budget shown is the borrowable capital plus the down payment. Notary fees (about 7–8% on an existing home, 2–3% on a new build) are added to the property price: estimate them with our notary-fees calculator to know the maximum price you can realistically target.
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