The surprise dissolution of the National Assembly following the European elections of June 9 caused an increase in the rate of the 10-year OAT, which serves as a reference for real estate loans. However, after the announcement by the European Central Bank on June 6 of the reduction in its key rates, which went from 4% to 3.75%, the reduction in property loan rates that began at the end of 2023 should continue. This movement puts an end to the status quo in force since September 2023, after fourteen months of increase. This is good news for individuals planning to purchase real estate in the coming months.
At the beginning of June, banks were lending at an average of 3.75% over twenty years, according to the broker Meilleurtaux. “We anticipate average rates around 3.5%, probably for the beginning of autumn”, indicates Maël Bernier, spokesperson for Meilleurtaux. However, the uncertainties over the results of the legislative elections do not protect against further surges in the OAT rate between now and the formation of a new government.
The relaxation – still fragile – of credit conditions leaves a bitter taste for borrowers who purchased at the end of 2023, when credit rates were at their highest. All is not lost for them. It will soon be time to think about renegotiating their loan. Given the costs incurred, the operation only makes sense if the borrower can obtain an interest rate at least 100 basis points below his initial credit.
Contact your bank
Those having taken out a loan at 4.4% at the end of 2023 must therefore aim for a new rate of 3.4% to launch the operation, or even wait a few more months to wait for the symbolic threshold of 3% in order to increase the gain. This is indeed the personalized rate offered to the borrower, and not the market average. However, the best files already obtain less than 3.50% over twenty years. ” It’s necessary moreover be in the first five or six years of repayment, during which the share of interest in the monthly payment is the highest”, says Pierre Chapon, co-founder of Pretto.
The easiest way is to start by contacting your bank to renegotiate the rate. Their reaction will depend on the history of the relationship and their desire to retain their client. It is likely that the new rate proposed will not be as advantageous as that which the borrower could obtain in another establishment. “But it may make sense to accept since it avoids changing banks”notes Pierre Chapon.
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