With this very significant drop in rates, they wanted to make their plans a reality by buying the house of their dreams. Some have not yet crossed this threshold, but given the percentages in force, they should quickly give in.
Choose a fairly short loan term
So that the loan does not taint your transaction, it must be as low as possible. There are disparities between regions, so some are more attractive than others. The rate for home loans is on average 1.46%. After a small increase in 2017, it has experienced a slight decrease again since the start of the first quarter of 2018. If you want to save more money, simply opt for a fairly short loan duration.
A very attractive average rate for real estate credit
In fact, with 25 years, you will have a rate of 1.68 compared to 1.44 for 20 years and 1.25% for 15 years. This third possibility is not considered by all French people, some prefer to borrow over the long term, but banks tend to shorten the deadlines as much as possible. First-time buyers can generally afford a loan for more than 20 years because their file is more easily accepted by these banking establishments which look at the resources, but also the profile.
Income level increased in 2018
This drop in property loan rates is, however, not insignificant, because it offers purchasing power to all French people who previously could not make their dream of purchasing a house or apartment come true. In addition, 2018 seems to be a favorable year since the level has never been so high. Household incomes are increasing and they are naturally turning to real estate to boost their investment or buy a primary home. Specialists are therefore quite confident for the end of the year.
