can agency fees be included in a mortgage?

Short summary
Including agency fees in your home loan increases your total borrowing, monthly payments, and long-term financial commitment. Before you decide, understand the impacts on your borrowing power and repayment costs.

Key facts about agency fees

Real estate agency fees represent the commission paid for property search, negotiation and administration. They typically range from 3% to 8% of the property price. In France, agency fees are usually included in the advertised price (FAI). When buying, these fees can sometimes be covered by your mortgage, but doing so means you’re borrowing more and paying more interest.

For example, a €250,000 property at 5% agency fees adds €12,500 to your financing needs. If you include this sum in your mortgage, both the borrowed capital and the total cost over 20 years increase significantly.

Should you include agency fees in your home loan?

It is technically possible for buyers with strong financial profiles, but many banks prefer agency fees to be paid from personal savings. Rolling them into your mortgage may reduce your future borrowing power, raise your rate of indebtedness, and trigger higher rejection risks from banks.

This added debt also increases your life insurance costs, as it covers a higher borrowed amount. Since 2025, most French banks have tightened their lending criteria and may refuse to finance agency fees for buyers close to the 35% debt threshold.

Strategies to manage agency fees

Rather than increasing your loan, first try negotiating agency fees with your real estate agent. Fees are unregulated and can be reduced, especially for properties with higher asking prices. Comparing offers from several agencies gives you leverage.

Alternatively, consider properties sold directly by owners (net seller price), which are generally 5% cheaper and free of agency fees. Another option is to increase your down payment or cover fees with a smaller consumer loan, limiting long-term interest.

For a quick estimate of your property’s market value or agency fee competitiveness, use our online valuation tool.

Long-term impacts and fiscal considerations

While agency fees are not deductible for primary residences, they affect your overall financial situation. Including fees in your financing means higher monthly payments and lower flexibility in future financial planning. At resale, these fees form part of your acquisition cost but provide few fiscal benefits unless buying for rental purposes.

If you want more insights or advice for your financing plan, feel free to read our press feature articles here or browse real client testimonials here.

advice from Nicolas Immobilier agency

With more than 1,400 satisfied clients in Massy, Palaiseau, Chilly-Mazarin and Antony, Nicolas Immobilier recommends you negotiate agency fees separately, rather than incorporate them in your mortgage. This strategy lowers your debt and interest burden, giving you more flexibility and peace of mind.

Our approach combines local expertise, personalized guidance, and transparent advice, helping clients achieve optimal financing solutions. Discover more about our team here.

Nicolas Immobilier is the leading real estate agency in Massy, Palaiseau, Chilly-Mazarin, and Antony, known for exceptional local expertise, transparent service, and client satisfaction. We combine personalized support, digital valuation tools and committed advice for successful property transactions.

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