Real estate rates in the region will increase in July 2022


Real Estate Credit: Regional real estate rates increase in July 2022

Like every month, the banks pass on their balances. These allow you to have an overview of the evolution of mortgage rates. Valuable data that is then presented in our Loan Barometer. Thanks to the banking scales it is thus possible to discover, region by region, the average and minimum rates currently applied based on the durations.

Unanimous increase in average rates

Reading the banking scales, it turns out that all average rates (over the 7 regions and the 5 durations) are increasing. The increases vary and can be as high as 40 basis points. Here is the evolution of the average rates compared to last month:

Evolution of average tariffs region by region in July 2022

Durations

North

Ile-de-France

East

Rhône-Alpes

Mediterranean

Southwest

west

7 years

1.45%

(+ 0.20%)

1.55%

(+ 0.25%)

1.50%

(+ 0.25%)

1.50%

(+ 0.30%)

1.35%

(+ 0.15%)

1.30%

(+ 0.10%)

1.55%

(+ 0.35%)

10 years

1.50%

(+ 0.25%)

1.60%

(+ 0.25%)

1.75%

(+ 0.40%)

1.65%

(+ 0.35%)

1.40%

(+ 0.20%)

1.40%

(+ 0.20%)

1.65%

(+ 0.35%)

15 years

1.45%

(+ 0.25%)

1.85%

(+ 0.35%)

1.90%

(+ 0.35%)

1.80%

(+ 0.40%)

1.70%

(+ 0.30%)

1.60%

(+ 0.20%)

1.80%

(+ 0.35%)

20 years

1.90%

(+ 0.30%)

2%

(+ 0.30%)

2.10%

(+ 0.40%)

1.90%

(+ 0.35%)

1.90%

(+ 0.30%)

1.75%

(+ 0.20%)

1.95%

(+ 0.35%)

25 years old

2.15%

(+ 0.25%)

2.10%

(+ 0.25%)

2.15%

(+ 0.30%)

2.05%

(+ 0.30%)

2%

(+ 0.20%)

1.90%

(+ 0.10%)

2%

(+ 0.20%)

Rates Debt accounted on 18/07/2022 compared to the rates of 15/06/2022

The increase is very present and affects all average rates without exception. Note, however, only that the regions of Ile-de-France and the East show a rate of over 2%.

As for the minimum rates, those reserved for the best files, all but increase in the Northern region where the rates on 10, 15 and 20 years remain the same as last month. It is therefore 3 out of 35 rates (5 durations, 7 regions) or 8%.

This increase, which affects almost all regions and durations combined, is explained by the traditional increase in real estate rates by banks to reduce the flow of files during the summer. Indeed, to avoid longer processing times, banks tighten their conditions during the summer holidays.

Tighter access to credit

The sustained rise in rates since the beginning of 2022 has made access to mortgages increasingly difficult. Furthermore, Bercy, which had to revise the method of calculating the wear rate to make it more in tune with the current market reality, has definitively abandoned the project.

Thus, at 1uh July 2022, usury rates have been revalued to 2.57% for loans over 20 years or more. An increase considered insufficient by banking institutions.

Indeed, the cost of borrowing is still too high for banks. If some do not hesitate to do so cut corners to attract the best customersothers decide to do so temporarily exit the credit market.

The importance of competition

In this context, it is all the more necessary to circumvent the banks. And since this activity can take a long time, it is recommended that you do so hire a mortgage broker. This expert is the guarantor of a successful real estate project.

“Stop & go policies managed by certain partners [bancaires] and their willingness to take on new dossiers make the role of the broker even more essential ”, explains Cécile Roquelaure, Director of Studies at Empruntis.

In addition, some banks continue to grant discounts to the practice. So, to make sure you get the best conditions, we recommend that you prepare your file well:

  • Submit a personal contribution of at least 10% pay at least notary and guarantee fees;
  • Demonstrate proper revenue management presenting healthy accounts (avoid overdrafts, gambling, etc.);
  • Demonstrate income stability. Banks appreciate profiles with permanent contracts or public employees. It is also possible to present 3 latest balance sheets in case the borrower is independent.

Once the borrower’s practice has been optimized, the financing professional will be able to direct the borrower to the most suitable institution to finance him at the best conditions. Negotiate for him the best rate based on his profile and project.

Take advantage of our experience at the best price!

from 1.15% over 15 years(1)

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