© Unsplash/Amina Atar
The grip is loosening a little on real estate loans. Our colleagues from the newspaper Les Echos reveal that the drop in real estate interest rates which began at the end of 2023 in retail banks, intensified at the beginning of 2024. A consequence of inflation which has slowed down significantly in recent months, particularly in France. Also a consequence of the maintenance of the ECB's key rates which, according to many analysts, is preparing the announcement of an upcoming rate cut.
The drop concerns around two thirds of the 20-year credit rate scales, “on average of 20 basis points”, reveals Cécile Requelaure, director of studies at Empruntis. A witness among others of the “unlocking” of the conditions imposed in recent months on candidates for the loan. The drop in rates is not the only good signal coming from the banks.
Cut in rates, but also from the # 8217;average contribution under borrowing conditions
One condition in particular should allow significantly more borrowers to realize their real estate project. This is the contribution required by banks to validate a request: this has fallen by 10,000 euros in two months, which gives an entry ticket at 54 798 euros per credit at the national level, compared to 64 942 euros in December 2023.
Of course, we are still far from the particularly interesting conditions observed between 2021 and the start of 2022, where loans were signed at rates close to 1%. The rate of decline is, however, sufficiently sustained to anticipate a significantly more favorable context within a few months.
Geographic disparities also remain very marked. In New Aquitaine, for example, BFMTV reveals that the drop in intake reaches up to 45% – with an average contribution which increases locally from 73,927 euros to 40,587 euros. Major drop also in the Île-de-France region, where the average contribution required increased over the period from 230 325 euros to 150 778 euros.
Other regions such as the Grand Est region and Franche-Comté enjoy idyllic access conditions considering the regions we mention in the previous paragraph. The average contribution is 13,745 euros compared to 30,472 euros last December. We underline this: obtaining a mortgage remains difficult at the start of 2024, even if the trend is towards an easing of these difficulties.
To maximize your chances of obtaining your loan, it is recommended to open savings accounts beforehand, and to show a certain discipline in your ability to save. Our colleagues from BFMTV give in their article some additional advice likely to make your banker more flexible in response to your request.
- Between the end of December 2023 and February 2024 the situation improved significantly around the conditions for granting credit.
- Even before the ECB did ;#8217;announces a drop in rates, the latter are beginning to significantly reduce the rate of certain real estate loans.
- In addition to this, first-time home buyers have the right to a sharply declining personal contribution.
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