rates, was it really better before?


Real Estate: Were the rates really better earlier?

With interest rates on the rise, it is tempting to say that we have missed the opportunity to borrow at a lower cost. However, things are far from that simple. If we look more broadly at the market trend, the price of a home loan is still particularly attractive at the end of 2022. Support table and simulations, we will show you.

Debt rates recorded on 10/31/2022.

The cost of a loan remains low

To observe what the level of interest rates on the cost of a loan actually changes, we will perform a simulation using our online calculator and the average rates recorded by the Housing Credit Observatory / CSA.

Starting from the hypothesis of a loan of 200,000 euros contracted in 20 years, it is therefore possible easily view the evolution of the cost of a loan based on the years. To help you compare with the current price, let’s add, in the last column on the right, the cost difference compared to a loan taken out today.

Year

Average rate

Total cost of credit

Difference

2003

4.09%

93,040 euros

+ € 55,200

2004

3.99%

€ 90,640

+ € 52,800

2005

3.41%

76,240 euros

+ € 38,400

2006

3.88%

€ 87,760

+ € 49,920

2007

4.41%

€ 101,440

+ € 63,600

2008

4.94%

€ 115,120

+ € 77.280

2009

3.93%

€ 89,200

+ € 51.360

2010

3.36%

75,040 euros

+ € 37,200

2011

3.91%

€ 88,480

+ € 50,640

2012

3.49%

78,160 euros

+ € 40,320

2013

3.00%

66,160 euros

+ € 28.320

2014

2.62%

€ 57,280

+ € 19,440

2015

2.13%

45.760 euros

+ € 7,920

2016

1.48%

31,120 euros

– € 6,720

2017

1.55%

€ 32,800

– € 5,040

2018

1.42%

€ 29,920

– € 7,920

2019

1.18%

€ 24,640

– € 13,200

2020

1.20%

€ 25,120

– € 12,720

2021

1.05%

€ 21,760

– € 16,080

2022

1.78%

€ 37,840

0 €

*Simulation for information purposes on the basis of a real estate loan (excluding insurance) of 200,000 euros stipulated over a period of 20 years. The average rate corresponds to the rate of real estate loans to individuals for all 3 marketsAnd quarter of the year (source: Observatoire Crédit Logement / CSA). The total cost of the credit corresponds to the sum of the bank interest. The difference corresponds to the total cost of credit for the year of the line compared to the total cost of 2022.

A home loan remains cheap in 2022

In the light of this simulation, there is therefore an increase in the cost of debt compared to the previous half year. On the other hand, we realize that this increase only concerns loans taken out before 2016. In fact, before 2015 a loan will have cost you much more than todayenough to put the current situation into perspective …

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