What salary do you need to borrow €400,000 in France?
Updated on 7 August 2026
To borrow €400,000 in France, you need to show a net income of around €5,700 per month over 25 years, and up to €11,062 over 10 years. Everything comes down to a single ceiling: the debt-to-income ratio, capped at 35% of net income by the HCSF (Haut Conseil de stabilité financière, France's financial stability council), a binding rule in place since January 2022 and renewed in 2026.
- The longer the loan term, the lower the monthly payment, which mechanically lowers the minimum net salary required by the bank.
- The 35% debt-to-income ratio includes borrower's insurance and covers all credit charges, not just the new loan.
- A down payment of 10 to 20% (€40,000 to €80,000) is required to cover notary and guarantee fees.
- Borrowing as a couple allows the co-borrowers' net incomes to be combined, which lowers the individual salary needed to meet the debt-to-income ratio.
What salary do you need to borrow €400,000?
The net salary required ranges from €5,679 over 25 years to €11,062 over 10 years, depending on the loan term and the interest rate applied. This directly affects the monthly payment and therefore the borrowing capacity.
| Loan term | Average rate (2026) | Monthly payment | Net salary required (35%) |
|---|---|---|---|
| 10 years | 3.05% | ≈ €3,872 | ≈ €11,062 |
| 15 years | 3.16% | ≈ €2,791 | ≈ €7,976 |
| 20 years | 3.31% | ≈ €2,280 | ≈ €6,514 |
| 25 years | 3.43% | ≈ €1,988 | ≈ €5,679 |
What salary to borrow €400,000 over 10 years?
With an interest rate of 3.05% (August 2026 data), the monthly payment for a €400,000 loan over 10 years will be around €3,872. To cover this expense while staying within the maximum 35% debt-to-income ratio, a minimum net salary of around €11,062 per month is required.
What salary to borrow €400,000 over 15 years?
Over a 15-year period, with a rate of 3.16% (August 2026 data), the monthly payment would be around €2,791. You would then need a minimum net monthly income of €7,976 to consider such a loan.
What salary to borrow €400,000 over 20 years?
For a €400,000 loan spread over 20 years at a rate of 3.31%, the approximate monthly payment would be €2,280. A borrower would need a net monthly salary of €6,514 to maintain an acceptable debt-to-income ratio.
What salary to borrow €400,000 over 25 years?
Finally, for a loan over 25 years with an interest rate of 3.43% (August 2026 data), the monthly payment would come to around €1,988. This means a net monthly salary of at least €5,679 is needed to repay the loan without exceeding the recommended debt-to-income threshold.
(Source: CAFPI, 15/20/25-year rates updated on 06/08/2026; 10-year rate updated on 07/08/2026)
The required salary scales proportionally with the amount borrowed: see our simulations for borrowing €200,000, €300,000, €500,000 or €600,000, as well as all our articles on mortgage loans.
Goals
What is borrowing capacity?
Borrowing capacity is the maximum amount a bank agrees to lend to a household, determined by its income, expenses and the loan term, within the limit of the 35% debt-to-income ratio.
Factors influencing borrowing capacity
Borrowing capacity is determined by several key factors:
- Monthly income: This is the basis of the assessment. The higher the income, the greater the capacity to repay a loan is considered to be.
- Existing loans: Existing credit reduces borrowing capacity, since it represents regular charges already committed.
- Monthly expenses: Recurring expenses (rent, bills, etc.) reduce the amount available to repay a new loan.
- Loan term considered: The longer a loan's term, the lower the monthly payments, and vice versa.
The importance of the debt-to-income ratio
The debt-to-income ratio is critical in assessing a mortgage loan application. It refers to the percentage of income allocated each month to debt repayment.
Banks generally consider that a debt-to-income ratio should not exceed 35% (HCSF standard) to ensure sufficient disposable income after debt payments. The Banque de France notes that “HCSF standards cap the maximum term of home loans at 25 years and the maximum effort ratio on borrowers at 35%.” This rule helps balance new credit-related charges without compromising the borrower's financial situation.
The influence of the interest rate and loan insurance
When considering borrowing a substantial sum such as €400,000, understanding interest rates and the cost of borrower's insurance is essential. These factors significantly influence the maximum monthly payment and the total cost of the loan.
How the interest rate affects your loan
The interest rate determines a significant part of the cost of the loan and, consequently, the monthly payment.
A higher rate means higher interest over the life of the loan, increasing the total amount repaid. There are fixed rates and variable rates:
- Fixed rate: stable monthly payments, protection against market fluctuations
- Variable rate: fluctuates with the reference index, carrying a significant risk of higher payments and total loan cost
The impact of loan insurance
The borrower's insurance is essential to secure loan repayment in the event of life's unforeseen circumstances.
The cost of insurance varies depending on several criteria and coverage options:
- Insurance cost: generally a percentage of the capital borrowed, included in the monthly payment calculation
- Insurance options: the choice between basic or extended coverage directly affects the price of insurance and therefore the overall cost of the loan
Choosing a favourable interest rate and suitable borrower's insurance are important factors in the total cost of the loan.
Optimising your loan application
Increasing your borrowing capacity
A solid borrowing capacity is something banks look at closely.
Banks generally recommend keeping the debt-to-income ratio below 35% (HCSF standard), which often means reducing other existing charges before taking on a mortgage loan.
A substantial down payment also strengthens the loan application, by reducing the amount borrowed and demonstrating the borrower's savings capacity.
It is crucial for the borrower to be ready to demonstrate their financial stability, avoiding any risk of potential over-indebtedness.
Additional support and loans
Various schemes can supplement a main mortgage loan to make it easier to become a homeowner.
For example, the Prêt à Taux Zéro (PTZ, France's zero-interest loan) is aimed at first-time buyers subject to income conditions, and helps finance part of the purchase interest-free.
Some employers also offer loans to their employees, often called employer loans, which can help finance a property purchase and count towards the down payment.
For prospective homeowners, every detail of the application is closely reviewed by lenders, including application fees and the guarantees attached to repayment.
The loan term also directly affects the total cost of the loan, with a longer term leading to higher interest.
Frequently asked questions
What is the monthly payment for a €400,000 loan over 20 years?
The monthly payments for a €400,000 loan spread over 20 years will depend on the interest rate. If the rate is fixed and known, you can use an online calculator like Finary's to work out the exact monthly payment.
What is the impact of another ongoing loan?
Having another loan already in progress can affect the borrower's debt-to-income ratio and, as a result, reduce their borrowing capacity. Lenders will assess the total financial charges before granting a new loan.
How can you get a competitive rate?
To compare loan terms, borrowers can request offers from different banks. Putting the offers received in competition with each other can be useful.
A strong financial file and sound account management can also help secure more attractive terms.
Do you need a down payment to borrow €400,000?
Banks generally expect a down payment of 10 to 20% of the project, i.e. €40,000 to €80,000, to cover notary and guarantee fees. A larger down payment strengthens the application and often makes it possible to negotiate a better rate.
Can you borrow €400,000 as a couple?
Yes, and it's common. Both co-borrowers' incomes are added together to calculate the debt-to-income ratio, which lowers the individual salary required. For €400,000 over 20 years, combined net incomes of around €6,514 are enough.
Sources
CAFPI, mortgage rate barometer
Finary, loan repayment calculator
Service-Public.fr, mortgage loans: term and debt-to-income ratio (35% HCSF rule)
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