If real estate loan rates are increasing nationally, some regional banks are more competitive and offer rates below the average. But then, can borrowers take out a loan from any establishment, wherever they are?
Rates of 4% on average over 20 years in Brittany and in Loire-Atlantique, 4.05% in New Aquitaine compared to 4.30% in PACA and 4.35% in Hauts-de-France. reading the scales revealed by the broker Empruntis, and while the national average is 4.05% over 20 years at the beginning of September, we see that all borrowers are not in the same boat when looking for a real estate loan.
Market knowledge, an important factor for the bank
How can these differences be explained? Depending on the market, some regional banks may offer more attractive rates. But does this mean that anyone can turn to a brand far from the region of their real estate project? It is not written that we are obliged to borrow in the region where we buy, confirms Mal Bernier, communications director at Meilleurtaux. But for practical reasons, borrowers often turn to a bank in the region of their main residence, or even their secondary residence.
Real estate credit: are you having trouble borrowing for your project? tell us
If a borrower can try to approach any bank, the latter will in fact often be asked to turn to an establishment in their region. It is therefore difficult to approach a Breton bank if you are on the Côte d’Azur. There is a geographical logic, says Mal Bernier. A banker who grants a loan knows the market, the value of goods or how they sell. Knowledge of the market and the sector plays a role in granting a loan. However, a Strasbourg banker does not necessarily know the market near Rennes.
However, there are exceptions. Some borrowers, first-time buyers for example, can apply for a loan from their parents’ bank, if the latter have a history with the establishment, notes Mal Bernier again. Once again, nothing is forbidden. But in reality, without any particular link with the bank in question, there is a good chance that it will not finance you.
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