A bridge loan (pret relais) is a short-term mortgage (12 to 24 months) that allows a homeowner to purchase a new property before selling the current one. The bank advances between 60 and 80% of the estimated value of the property to sell, at an interest rate typically 0.2 to 0.5 percentage points above the market rate, or approximately 3.4 to 4.0% in 2026. The total cost of a 12-month bridge loan on an advance of 400,000 euros amounts to between 14,000 and 16,000 euros in interest.
For many Parisian homeowners looking to change property, the question comes down to this: should you sell first and risk losing the desired property, or buy first with a bridge loan and accept the financial cost of the dual operation? In Paris, where quality properties sell within days, the bridge loan remains a relevant financing tool, provided you master its mechanisms and risks.
Contents
- How a bridge loan works
- The different forms of bridge loan
- The true cost of a bridge loan in 2026
- The buy-sell mortgage: the bridge loan alternative
- Bridge loan and buying strategy in Paris
How a bridge loan works
The bridge loan rests on a simple principle: the bank lends you a portion of the value of your current property in anticipation of its future sale. You thus have the funds needed to buy your new home without waiting to have sold.
The bridge loan amount
The bank never lends 100% of the estimated value of the property being sold. It applies a safety discount. If your property is already on the market with a signed preliminary agreement, the bank advances 70 to 80% of the sale price. If the property is on the market but without an offer, the advance drops to 60 to 70% of the valuation. If the property is not yet on the market, some banks accept 60 to 65%, but with tighter conditions.
For an apartment valued at 600,000 euros in the 12th arrondissement, the bank could advance between 360,000 euros (60%) and 480,000 euros (80%) depending on the marketing situation.
Repayment
The bridge loan is repaid in full upon sale of the property. The borrower does not repay capital monthly: they only pay interest (partial deferral) or defer all repayment to the sale (full deferral). Full deferral costs more overall as interest is capitalised, but it eases monthly cash flow.
The different forms of bridge loan
Several bridge loan configurations exist, suited to different situations.
The standalone bridge loan
The standalone bridge loan is used when the sale proceeds are sufficient to fully finance the new purchase. Example: you sell a two-bedroom in the 14th for 650,000 euros and buy a one-bedroom in the 6th for 580,000 euros. The bank advances 520,000 euros (80% of 650,000) for the purchase, and you repay in full upon selling.
The coupled bridge loan
This is the most common configuration in Paris, where buyers typically “trade up”. The bridge loan is paired with a standard mortgage that finances the difference between the new property price and the proceeds from selling the old one. You repay the bridge interest and the standard mortgage instalments simultaneously, then the bridge is settled upon sale.
The bridge loan with deferral
A variant of the coupled bridge, deferral postpones the start of standard mortgage repayments until the sale. During the bridge period, you pay only interim interest. This is the most comfortable formula for cash flow but also the most expensive, as standard mortgage interest accrues during the deferral period.
The true cost of a bridge loan in 2026
The cost of a bridge loan is not limited to the advertised interest rate. Several components add up.
Bridge loan interest
In 2026, bridge loan rates sit between 3.4 and 4.0%, or 0.2 to 0.5 points above the rate for a standard 20-year mortgage. On an advance of 400,000 euros over 12 months at 3.6%, interest amounts to 14,400 euros. Over 18 months, the cost rises to 21,600 euros.
Insurance and ancillary fees
Mortgage insurance on the bridge loan is mandatory and represents 0.10 to 0.35% of the capital per year. The bank also charges processing fees (500 to 1,500 euros) and a guarantee (surety or mortgage charge). For a coupled bridge loan, these fees apply to the entire financial package.
Worked example
Consider a common Paris scenario: you sell a 70 m² two-bedroom in the 18th valued at 550,000 euros and buy an 85 m² three-bedroom in the 15th arrondissement for 800,000 euros. The bank grants a bridge of 385,000 euros (70% of 550,000) and a standard mortgage of 415,000 euros over 20 years. With partial deferral at 3.6%, the monthly bridge interest is 1,155 euros. If the sale goes through in 8 months, the total bridge cost is 9,240 euros in interest, plus insurance and processing fees, for an overall cost of approximately 11,000 to 13,000 euros. That is the price of peace of mind to avoid missing the ideal property.
The buy-sell mortgage: the bridge loan alternative
In recent years, the buy-sell mortgage (pret achat-revente) has established itself as an alternative to the standard bridge loan. It is offered by several national banks and constitutes, in many cases, a more elegant solution.
How it works
The buy-sell mortgage merges the outstanding balance on your current loan, the financing for the new property, and the advance on the sale into a single loan. Your old mortgage is settled, and you pay just one monthly instalment calculated on the entire package. When the property is sold, the proceeds go toward early repayment, and the loan is recalculated on the remaining balance.
Advantages over a standard bridge loan
The buy-sell mortgage simplifies management with a single monthly payment instead of two. It is often more favourable in terms of the debt-to-income ratio because the bank calculates the burden on the basis of the final loan (after sale), not the temporary double burden. There is no duration pressure as with a bridge loan, which must be settled within 12 to 24 months: if the sale takes longer, the buy-sell mortgage adapts.
Access conditions
Banks offering the buy-sell mortgage generally require the property being sold to be in a high-demand area (which is the case for Paris and Ile-de-France), a reasonable outstanding loan balance relative to the property value, and a post-sale debt-to-income ratio compliant with the HCSF 35% norm. See our guide on mortgages in 2026 for a complete analysis of financing options.
Bridge loan and buying strategy in Paris
The decision to use a bridge loan is part of a broader buying strategy that must account for the particularities of the Parisian market.
Sell first or buy first?
In Paris, where the market structurally favours sellers for quality properties, buying first is often the most effective strategy but the most expensive. Selling first is more financially prudent but exposes you to the risk of not finding the target property within the desired timeframe.
Our dual buy-and-sell service supports Parisian homeowners through this dual operation by coordinating the sale and purchase timelines to minimise the overlap period and the cost of bridge financing.
The sale contingency clause
An alternative to the bridge loan involves making the purchase conditional on the sale of your current property through a sale contingency clause. In Paris, however, this clause significantly weakens your position as a buyer. Parisian sellers prefer a buyer without a sale condition, and you risk losing the property to a financially “cleaner” competitor.
Optimal timing
If you opt for a bridge loan, the ideal sequence is to list your property 2 to 3 months before starting your active search. If an offer comes quickly, you buy from a position of strength. If the property takes longer to sell, you adjust your strategy. A property hunter can synchronise both operations and reduce the overlap period to a minimum.
FAQ
What is the maximum duration of a bridge loan in 2026?
The standard duration of a bridge loan is 12 months, renewable once for a maximum of 24 months. In 2026, some banks offer initial terms of 18 months. Beyond 24 months, the bridge loan must be converted into a standard mortgage, which incurs additional costs.
Can you get a bridge loan if the property to sell is not yet on the market?
Yes, but the conditions will be stricter. The bank will apply a larger discount to the estimated value of the property (60 to 65% instead of 70 to 80%). Most banks require at minimum a professional valuation and a commitment to list the property within 1 to 3 months.
Does a bridge loan count toward the 35% debt-to-income ratio?
Yes, the bridge loan is included in the debt-to-income calculation. However, for a standalone bridge loan with full deferral, some banks only count the interim interest in the calculation. In buy-sell mortgage arrangements, the mechanism is different because the existing loan on the property being sold is settled.
Do you have a purchase project in Paris? Contact our property hunters to discuss it.
Frequently asked questions
What is the maximum duration of a bridge loan in 2026?
The standard duration of a bridge loan is 12 months, renewable once for a maximum of 24 months. In 2026, some banks offer initial terms of 18 months. Beyond 24 months, the bridge loan must be converted into a standard mortgage, which incurs additional costs.
Can you get a bridge loan if the property to sell is not yet on the market?
Yes, but the conditions will be stricter. The bank will apply a larger discount to the estimated value of the property (60 to 65% instead of 70 to 80%). Most banks require at minimum a professional valuation and a commitment to list the property within 1 to 3 months.
Does a bridge loan count toward the 35% debt-to-income ratio?
Yes, the bridge loan is included in the debt-to-income calculation. However, for a standalone bridge loan with full deferral, some banks only count the interim interest in the calculation. In buy-sell mortgage arrangements, the mechanism is different because the existing loan on the property being sold is settled.
