How a Property’s EPC (DPE) Rating Impacts Your French Mortgage

1. What Is a DPE and When Is It Required?

The Diagnostic de Performance Énergétique (DPE), equivalent to the Energy Performance Certificate (EPC), measures a property’s energy efficiency and greenhouse gas emissions. Each home is rated on a scale from A (most efficient) to G (least efficient).

  • When it’s required:

    • A valid DPE is compulsory when selling or renting a property in France.

    • It is generally valid for 10 years (or 2 years for new properties).

  • Regulatory timeline:

    • From 2025, landlords cannot rent out G-rated properties.

    • From 2028, F-rated properties will also be banned from the rental market.

    • From 2034, the restriction will extend to E-rated homes.

    • An energy audit is already compulsory for the sale of properties rated F or G, and will gradually extend to others.

2. Do Lenders Consider Your DPE for Mortgage Eligibility?

Yes—French banks increasingly take the DPE rating into account when deciding whether to grant a mortgage.

  • Low-rated homes = higher risk: Properties rated F or G are seen as risky because they carry higher running costs, lower long-term value, and potential regulatory restrictions.

  • Impact on lending terms: While a poor rating does not automatically prevent financing, banks may impose stricter requirements, such as requesting renovation quotes or adjusting the borrower’s debt-to-income ratio.

  • High-rated homes = better terms: Properties rated A–C are more attractive to lenders and may help borrowers secure more favorable interest rates or loan conditions.

Some banks now also offer “green” mortgages, where interest rates are reduced if the borrower commits to improving the property’s energy rating by at least two levels after purchase.

3. Why Poor Ratings (F and G) Raise Costs for Borrowers

Owning a poorly rated home in France comes with multiple challenges:

  • Renovation obligation: Buyers of F- or G-rated homes will often need to show a budget and plan for energy-efficiency upgrades before their mortgage is approved.

  • Resale and rental risk: These properties may lose value or be difficult to rent out in the future due to strict regulations.

  • Higher financing costs: Lenders may increase rates, limit loan amounts, or require additional guarantees to offset the risk.

4. Summary Table

Scenario Mortgage Implications
No valid DPE Sale or rental cannot proceed; mortgage cannot be approved
Rating A–C Strong mortgage eligibility; possibility of better rates and loan terms
Rating E May trigger additional lender scrutiny; possible requirement for renovation planning
Rating F or G Higher lending costs, mandatory renovation justification, risk of future rental bans
Post-renovation upgrade Some lenders reduce interest rates once DPE rating improves (e.g., G → E or F → D)

Key Takeaways

  • The DPE is compulsory in all property transactions in France.

  • Mortgage lenders now systematically consider the DPE when assessing risk and eligibility.

  • Properties rated F or G are particularly challenging to finance, as borrowers must often show sufficient resources to fund renovations and improve the rating.

  • Buyers of more efficient homes (A–C) may benefit from better rates, while those purchasing energy-inefficient properties should prepare renovation budgets as part of their financing strategy.