Real estate loan: the decline in credit rates continues in May
For several months, the curve of mortgage rates has not reversed, much to the delight of borrowers. The month of May 2016 is no exception to the rule since new declines are observed in each region.
Declining loan rates across France
This month, declines between 0.05 point and 0.20 point are thus displayed on the preferred loan durations 15, 20 and 25 years compared to the previous month, as well as on the minimum rates (practiced on the better records) than on average rates. However, we note some stability over the so-called “extreme” loan durations of 10 and 30 years.
The best mortgage loan rate is once again attributed to the North region, which recorded unprecedented rates of 1.04% over 15 years, 1.30% over 20 years and 1.45% over 25 years . The other regions also offer attractive rates from 1.25% over 15 years, 1.40% over 20 years and 1.75% over 25 years (West region). Significant differences in borrowing rates are thus noted from one city to another. They can indeed vary from 1.40% in Paris and Orleans up to 1.55% in Strasbourg on minimum rates over 20 years.
A variation that affects the amount of monthly payments and the cost of credit . These drop compared to last month, whatever the surface and the desired location. The gains are even more notable for borrowers who are eligible for the Zero Rate Loan. Calculate the amount of your PTZ by doing a zero rate loan simulation online.
It’s time to compare mortgage rates!
How to explain this drop in credit rates? The competitiveness of banks is part of the answer. “As we explained at the beginning of the month, banking establishments are waging a merciless war and want to lose nothing: retain customers who want to renegotiate their loan and attract those who want to buy , notes Cécile Roquelaure, director of communications and studies at Empruntis. The year 2016 is a key year for real estate and the banks intend to profit from it. ”
This ultra-competitive context where banks are waging a real interest rate war allows borrowers to fare well. To benefit from it, it is essential to compare with the help of a broker like Empruntis who will negotiate the best loan offer real estate available on the market.