The debt-to-income ratio is a key criterion when applying for a mortgage. Since 2022, this threshold has been regulated by the French High Council for Financial Stability (HCSF). It determines your borrowing capacity and directly influences whether a bank will approve your application. Discover how it is calculated, what the maximum regulatory threshold is in France, and what solutions exist to optimize it. To properly prepare and successfully complete your property purchase or sale project, contact your local Capifrance real estate advisor and benefit from expert support.
Summary
- The debt-to-income ratio is calculated by comparing all monthly expenses to net monthly income, with a benchmark threshold set at 35% including borrower insurance.
- In 2026, this ceiling remains the standard rule for banks, although some exceptions exist for specific borrower profiles and projects.
- If your ratio is too high, several solutions can improve your application: reducing expenses, increasing your down payment, extending the loan term, or consolidating existing debts.
How Is the Debt-to-Income Ratio Calculated?
The debt-to-income ratio is calculated using a simple formula:
(Total Monthly Expenses ÷ Net Monthly Income) × 100
Net monthly income includes rental income (generally counted at 70%), family allowances, alimony received, and regular salary supplements.
On the expense side, the calculation includes all existing loan repayments (mortgage, car loan, consumer credit), current rent if you are a tenant, and any alimony payments.
Example: if you earn €3,000 in net monthly income and have total monthly expenses of €1,050, your debt-to-income ratio is:
(1,050 ÷ 3,000) × 100 = 35%
What Is the Maximum Debt-to-Income Ratio in France?
Since January 2022, the HCSF has set the maximum debt-to-income ratio at 35%, including borrower insurance. This rule remains in force in 2026 and applies to all banking institutions.
However, banks may exceed this threshold for up to 20% of their quarterly mortgage production. These exceptions mainly concern:
- First-time buyers
- Primary residence purchasers
- Households with high incomes
- Well-structured buy-to-let investment projects
Beyond the ratio itself, lenders also assess your remaining disposable income, meaning the budget left after paying your loan repayments and fixed expenses.
Criteria Evaluated by Banks
- Debt-to-income ratio (≤ 35%)
- Sufficient disposable income
- Employment stability (permanent contract, length of service)
- Personal contribution (down payment)
How Can You Reduce an Excessively High Debt-to-Income Ratio?
If your ratio exceeds 35%, several solutions can help restore sufficient borrowing capacity.
Paying off existing loans before applying automatically reduces your monthly expenses. Increasing your personal contribution lowers the amount you need to borrow and therefore reduces future monthly repayments. Extending the loan term decreases monthly payments, although it increases the total cost of the loan.
Debt consolidation can also help by combining several loans into a single lower monthly payment. However, keep in mind that extending repayment periods generally increases the overall borrowing cost.
Working with a Capifrance advisor and a partner mortgage broker can help optimize your financing application and maximize your chances of obtaining bank approval while avoiding any risk of over-indebtedness.
Why Disposable Income Is Just as Important as the Debt-to-Income Ratio
The debt-to-income ratio alone is not enough to determine whether a mortgage application is viable. Banks also examine your disposable income, meaning the amount you have left each month after paying all fixed expenses and your future mortgage payment.
This criterion allows lenders to assess your actual ability to cover everyday expenses such as:
- Food
- Transportation
- Energy bills
- Insurance
- Child-related expenses
- Unexpected costs
As a result, two households with the same debt-to-income ratio may present very different risk profiles depending on their income level and family situation.
In practice, an application slightly above 35% may sometimes be approved if the borrowers have comfortable incomes and substantial disposable income. Conversely, a ratio below the threshold may still be considered too risky if the remaining budget is insufficient.
This is why it is essential to prepare a comprehensive overview of your financial situation before applying for financing.
Conclusion
The debt-to-income ratio remains a fundamental benchmark for any mortgage project in 2026. Understanding it helps you anticipate your borrowing capacity, assess the feasibility of your project, and prepare a stronger application for lenders.
However, beyond the regulatory threshold of 35%, it is the overall balance of your financial situation that makes the difference: income level, disposable income, employment stability, personal contribution, and management of existing debts.
To maximize your chances of success, it is advisable to optimize your application in advance and seek guidance from a professional who can help identify the financing strategy best suited to your situation.
Looking to buy a house, apartment, building plot, or commercial property? Browse our property listings across France and find your perfect opportunity.
Are you also a property owner looking to sell? Start with our online property valuation tool, and a Capifrance advisor will provide comprehensive support to help you sell quickly and under the best possible conditions.
Frequently Asked Questions About the Debt-to-Income Ratio
What Debt-to-Income Ratio Is Required for Debt Consolidation?
Debt consolidation allows you to combine several loans into a single loan to reduce your monthly repayments. This operation improves your debt-to-income ratio and may bring it back below 35%, making it easier to obtain a new mortgage.
Specialized lenders may sometimes accept ratios of up to 45% after consolidation.
How Do You Calculate Your Borrowing Capacity?
Borrowing capacity depends on your net monthly income, fixed expenses, and the loan interest rate.
For a quick estimate, multiply your income by 0.35 to determine the maximum acceptable monthly repayment.
An online mortgage calculator can refine this estimate by taking borrower insurance and additional costs into account.
Author :
Frédéric Rémy – Director of Commercial Performance
A real estate professional for several years within the Capifrance network, I would like to share with you some essential advice to help you succeed in your real estate project with the support of our advisors.
