The Borrowing broker reveals the regions where borrowing is the easiest today. And borrowers from eastern France face higher rates than others.
In which region is it easiest to get a home loan? According to Empruntis, which publishes its regional rate letter on Tuesday, December 20, the sky is slightly more open in western France. On average, a Breton borrower can expect a 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 difficult 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 West and South-West regions suffer much less than the others because there is a greater representation of mutual banks compared to other regions. The competition is therefore a little stronger in these regionswhich helps borrowers obtain financing slightly more easily than in other regions such as Ile-de-France or PACA.
A general rate hike
Rate increases are generalized throughout France. Thus, Empruntis recalls for its part that in January, in the Southwest, the best buyer profiles benefited from the lowest rates on the market: 0.65% over 20 years. In the space of one year, for financing of 200,000 euros, their monthly payment (excluding insurance) has increased by 16%. Whatever the starting point of the rates, and whatever 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 for their financing costs for loans, fell back to 2.24% on 7 December.
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In this context, Empruntis believes that the increase in the usury rate at the beginning of January should give both banks and borrowers some breathing space. As a reminder, this maximum rate above which banks are not allowed to lend includes credit interest, insurance, and any bank charges. It is currently set at 3.05% for loans with a term of 20 years or more.
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If its next evolution will not make it possible to remove all the constraints, it will allow the banks to catch up a little more with the gap that they have been trying to fill for months, notes Ccile Roquelaure again. For Empruntis, the rates will therefore continue to climb. It is therefore better not to wait in the event of a real estate project.
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