Bridging interest (interets intercalaires) refers to the bank charges incurred during an off-plan purchase (VEFA, Vente en l’Etat Futur d’Achevement) between the first disbursement of funds and the delivery of the property. In Paris in 2026, they average 8,000 to 25,000 euros on a new-build purchase, depending on the amount borrowed and the duration of construction.
Introduction
Buying a new-build property in Paris off-plan (VEFA) involves a specific financing mechanism: your bank disburses the loan in successive tranches, following the progress of construction. During this building period, often 18 to 24 months, you are not yet repaying your main loan, but you pay interest on the sums already released. This is bridging interest: an often-underestimated cost item that can significantly increase the total cost of your acquisition.
In 2026, with average rates around 3.2% over 20 years and new-build programmes multiplying in Greater Paris, understanding this mechanism is essential for any buyer considering new construction.
Table of contents
- What is bridging interest?
- The disbursement schedule in VEFA
- Concrete calculation of bridging interest
- Partial deferral or total deferral: which option to choose?
- Strategies to reduce bridging interest
- Property hunter support for off-plan purchases
What is bridging interest?
Bridging interest corresponds to the bank’s remuneration on funds already released, during the construction phase of a new-build programme. Unlike a purchase in the existing market where the loan is released in a single payment on the day of signing at the notaire’s office, VEFA works through successive stage payments.
In practical terms, you sign your loan offer for a total amount, for example 600,000 euros for a three-bedroom apartment in the 13th arrondissement. But the bank does not disburse this sum in one go. It releases 5% at reservation, then 30% at completion of the foundations, and so on. Interest accrues immediately on each sum released.
This interest does not contribute to repaying the principal. It constitutes a pure surcharge, billed monthly throughout the construction period.
The disbursement schedule in VEFA
The French Construction Code strictly regulates stage payments in VEFA. The developer cannot demand more than the following percentages:
The first call comes at signing the reservation contract and represents 5% of the price. Completion of the foundations triggers a payment capped at 35% of the total price. Watertightness (roof completed) authorises a call of up to 70%. Completion of works brings the total to 95%. The remaining 5% is paid at delivery, after a conformity inspection.
In Paris, an average programme takes 18 to 24 months between signing and delivery. During this period, the amount on which you pay interest increases in stages. This progressivity is what makes the calculation less intuitive than a standard loan.
Concrete calculation of bridging interest
Take a realistic example for Paris in 2026. You are buying an off-plan apartment for 600,000 euros with a loan at 3.2% over 20 years. Your deposit covers the notaire fees (approximately 2 to 3% for new-build, or 15,000 euros).
At month 1, the bank releases 5%, or 30,000 euros. Your monthly interest amounts to 80 euros. At month 4, after completion of foundations, the cumulative disbursement reaches 210,000 euros (35%). Your monthly interest rises to 560 euros. At month 10, at watertightness, 420,000 euros are disbursed (70%). You then pay 1,120 euros per month. At month 16, at completion, 570,000 euros are disbursed (95%) for monthly interest of 1,520 euros.
Over the entire 18-month construction period, total bridging interest reaches approximately 14,500 euros in this example. This sum is lost: it does not reduce the outstanding principal.
For a property at 800,000 euros in the 7th arrondissement or the 16th, expect closer to 19,000 to 22,000 euros of bridging interest over 20 months of construction.
Partial deferral or total deferral: which option to choose?
Your bank will generally offer two options during the construction phase.
Partial deferral is the most common arrangement. You pay each month the interest on sums already disbursed, plus borrower’s insurance. This is the least expensive option overall, as interest does not capitalise. In our example, you pay between 80 and 1,520 euros per month during construction, on top of your current rent.
Total deferral exempts you from any payment during construction. The bridging interest is then capitalised, meaning added to the borrowed principal. The cash flow comfort is real, but the final surcharge is higher: interest generates its own interest. In our 600,000-euro example, total deferral costs approximately 2,000 to 3,000 euros more than partial deferral.
For a first-time buyer who continues to pay rent during construction, total deferral may be justified to avoid combining rent and interest. For an investor, partial deferral is generally preferable, especially since the interest is tax-deductible.
Strategies to reduce bridging interest
Several levers can limit this charge. The first is to negotiate the loan rate. Every basis point gained on the overall effective rate mechanically reduces bridging interest. In 2026, a 0.3-point difference on a 600,000-euro loan represents approximately 3,000 euros in savings on bridging interest alone.
Maximising the personal deposit on the first stage payments is another effective lever. If you finance the 35% foundation stage from your own funds and only involve the loan from the watertightness stage, you eliminate interest for the first 10 months.
Choosing a programme in the late stages of construction mechanically reduces the duration of interest. An apartment purchased at the watertightness stage generates only 6 to 8 months of bridging interest instead of 18 to 24.
Comparing loan offers by integrating the cost of bridging interest into the total loan cost is essential. Some banks offer attractive rates but with less favourable disbursement conditions.
Property hunter support for off-plan purchases
Buying off-plan in Paris requires careful analysis of the construction schedule, the developer’s financial strength and the disbursement timeline. A property hunter identifies programmes whose progress minimises the bridging interest period, negotiates terms with the developer and coordinates the financial structure with your broker.
At Home Select, our property hunters support buyers each year on new-build programmes in Paris and Île-de-France. We analyse the true cost of each project, bridging interest included, so you can objectively compare new-build and existing properties.
FAQ
What is the average duration of bridging interest in Paris?
The average duration is between 18 and 24 months for a new-build programme in Paris in 2026. It depends on the progress of construction and the number of stage payments specified in the reservation contract.
Can you avoid bridging interest entirely?
Yes, by opting for a total deferral of repayment. In this case, the interest is capitalised and added to the outstanding principal. You pay nothing during construction, but the total cost of the loan increases.
Are bridging interest payments tax-deductible?
For a rental investment, bridging interest is deductible from property income from the first year, even before the property is delivered. For a primary residence, they are not deductible.
Considering an off-plan purchase in Paris or Île-de-France? Our property hunters analyse the true cost of each programme, bridging interest included, to secure your investment. Contact us to discuss.
Frequently asked questions
What is the average duration of bridging interest in Paris?
The average duration is between 18 and 24 months for a new-build programme in Paris in 2026. It depends on the progress of construction and the number of stage payments specified in the reservation contract.
Can you avoid bridging interest entirely?
Yes, by opting for a total deferral of repayment. In this case, the interest is capitalised and added to the outstanding principal. You pay nothing during construction, but the total cost of the loan increases.
Are bridging interest payments tax-deductible?
For a rental investment, bridging interest is deductible from property income from the first year, even before the property is delivered. For a primary residence, they are not deductible.
How can you reduce the amount of bridging interest in a VEFA purchase?
Several levers exist. Negotiating the loan rate mechanically reduces the interest: a 0.3-point difference on a 600,000-euro loan represents around 3,000 euros in savings. Maximising your deposit on the first stage payments, for example financing the foundations from your own funds, eliminates interest for the first few months. Choosing a programme in the late stages of construction limits the duration to 6 to 8 months instead of 18 to 24. Finally, comparing loan offers by including the cost of bridging interest in the total loan cost is essential.
