ECB Holds Interest Rates at 2.5%

On 29 October 2026, the European Central Bank (ECB) decided to leave its key interest rates unchanged. The deposit rate remains at 2.5%, amid inflation concerns and rising financing costs.

For international buyers considering property in Cannes or on the French Riviera, this does not necessarily mean that French mortgage rates will fall.

Why Could French Mortgage Rates Rise?

French banks consider their funding costs and financial market conditions when setting mortgage rates. In October 2026, the yield on French 10-year government bonds exceeded 5%.

According to Banque de France, the average rate on new housing loans reached 3.32% in August 2026, excluding insurance and fees. Mortgage broker Vousfinancer reported approximately 3.7% for 20-year loans in October.

How Could This Affect Your Property Budget?

Here is an example of a €250,000 mortgage over 20 years, excluding insurance:

A one-percentage-point increase means approximately €132 more per month, or over €31,000 across 20 years.

Should You Buy Property Now or Wait?

The right decision depends on your financial circumstances, long-term plans and available opportunities. Buyers should compare financing options, consider all purchase costs and assess the potential for price negotiation.

Your Property Project in Cannes with Estate Service

Looking to buy, sell or invest in Cannes, Basse Californie, Palm Beach, La Croisette or elsewhere on the French Riviera?

Estate Service, your Franco-Scandinavian real estate agency in Cannes, offers personalised guidance and local market expertise for international property clients.

Contact Régis – Estate Service Cannes

Phone: +33 6 26 33 01 56
Email: regis@estateservice.fr

Let's discuss your French Riviera property plans!

Sources: ECB, Banque de France and Vousfinancer, October 2026. Figures are indicative and subject to change.