still increasing in September, but disparities exist between regions


Property rates: Still rising in September, but disparities exist by region

Different credit conditions depending on the region

Despite a move that remains bullish in September, rates are increasing at a slower pace than observed since January 2022. Bank balances show disparate rates by region, which testifies to the ability of some banks to adapt and study new solutions. If the average tariffs exceed 2% in 20 years in almost all regions, it is nevertheless possible to obtain more attractive tariffs in the Rhône-Alpes, North or South-West regions.

Here is the evolution of the average rates this fall:

Average rates region by region in September 2022

Regions

7-year average real estate rate

10-year average real estate rate

15-year average real estate rate

20-year average real estate rate

25-year average real estate rate

Ile-de-France

1.65%

1.65%

1.85%

2.00%

2.15%

North

1.60%

1.65%

1.80%

1.95%

2.15%

ballast

1.65%

1.70%

1.90%

2.00%

2.15%

in the Rhône-Alpes

1.65%

1.75%

1.85%

1.95%

2.10%

Southwest

1.30%

1.40%

1.65%

1.85%

2.00%

west

1.65%

1.70%

1.85%

2.00%

2.15%

Mediterranean

1.60%

1.55%

1.85%

2.00%

2.20%

As for the minimum enrolled rates that are reserved for the most solid practices, here’s what you can get in mid-September:

The best rates available in September 2022

Regions

minimum real estate rate

Ile-de-France

1.23% in 10 years

North

1.80% in 20 years

In the west

1.75% in 20 years

Southwest

0.94% in 7 years

Mediterranean

1.20% in 10 years

The change in 10-year Treasury Bills (OAT) continued to grow, going from 2.10% at the beginning of September to 2.25% in mid-month. In a still unfavorable economic environment with rising cost of money and still rising inflation, the tariff increases applied by the banks, on the other hand, are disparate, depending on the region and duration. In fact, depending on their strategies for winning back customers, some financial institutions may be more flexible and offer competitive rates.

Some banks are flexible

It is thus possible, depending on the region and the banks, to obtain different, more or less attractive credit conditions. If the jaws effect due to the sharp rise in interest rates, on the one hand, and the weak revaluation of the usury rate, on the other, leads to the exclusion of some more fragile profiles, the French have remained confident in stone. Indeed, purchase intentions in real estate, still considered a safe haven, have maintained some momentum.

To support the market and the concession of real estate projects, some banking institutions do not hesitate to adapt and show flexibility by proposing new solutions, in particular with the return of variable or mixed rates. Remember, however, that this is not the case with all banking institutions. Signs to be monitored subsequently given the geopolitical situation which remains uncertain and on the eve of a new reassessment of the usury rates expected at 1uh next October.

New solutions for access to credit

The adaptability of some banking institutions e different credit conditions depending on the region offer negotiation solutions to loan applicants. The repayment of floating rate loans with cap is an interesting option that allows you to grant an attractive rate, which can be revised downwards or upwards depending on the evolution of real estate rates. The variation of the tariff is limited by the cap according to the contractually provided terms. It is still necessary for the borrower to present a solid loan file.

Indeed, while some banks grant discounts by cutting their margins or by resorting to new financing solutions, they remain cautious in evaluating credit practices. In a market where access to credit remains complex, it is essential to prepare a solid credit application file and to verify your debt capacity in advance. To get a more competitive rate, better-surrounded borrowers benefit from a certain edge. Also, don’t hesitate to get accompanied by a mortgage broker. The latter helps future borrowers to access an advantageous loan solution at the best rate.

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from 1.33% over 15 years(1)

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