living in the West, security for a better rate

The loan broker reveals the regions where it is easiest to borrow today. And borrowers from eastern France face higher interest rates than others.

In which region is it easiest to get a home loan? According to Empruntis, which publishes its regional tariff letter on Tuesday 20 December, the sky is a little more open in western France. Average, a Breton borrower can expect an interest rate of 2.30% over 20 years, and go down to 2.10% for the best profiles. On the other side of France in the east, it is hard to hope for better than 2.45% when the average rate over 20 years is around 2.65%. A slightly lower rate in Ile-de-France (2.60% on average).

There are differences between the regions, confirms Mal Bernier, spokesman for broker Meilleurtaux. The western and southwestern regions suffer much less than the others because there is a greater representation of mutual banks compared to other regions. The competition is therefore slightly stronger in these regionswhich helps borrowers obtain financing a little easier than in other regions such as Ile-de-France or PACA.

A general increase in interest rates

Rate increases are general throughout France. For its part, Empruntis recalls that the best buyer profiles in January in the south-west benefited from the lowest prices on the market: 0.65% over 20 years. Over the course of a year, for financing 200,000 euros, their monthly payment (excluding insurance) has increased by 16%. Regardless of the starting point for the rates, and regardless of the profile, all French borrowers have suffered this increase in identical proportions: between 14 and 17%, indicates Ccile Roquelaure, director of studies and spokesperson for Empruntis. A general increase which is explained by the obligation for the banks to pass on the increase they suffer also with the rise in the 10-year OAT, the benchmark index for banks on their funding costs for loans, fell back to 2.24% on 7 December.

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In this context, Empruntis believes that the increase in usurious interest at the beginning of January should give both banks and borrowers some breathing room. As a reminder, this maximum interest rate that banks are not allowed to lend includes credit interest, insurance and any bank charges. It is currently set at 3.05% for loans with terms of 20 years or more.

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If its next development will not make it possible to remove all the restrictions, it will allow the banks to catch up a little more the gap that they have been trying to fill for several months, notes Ccile Roquelaure again. For Empruntis, rates will therefore continue to rise. It is therefore better not to wait in case of a real estate project.

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