Real estate loans: rates remain attractive

In June, we reported that real estate loans were still low, making it an optimal time for real estate purchases (read here). “Mortgage rates are expected to increase only moderately in 2018 and end the year between 1.65% and 1.70% at most” predicted Crédit Logement, specialists of real estate loans.

So it is no surprise that now, two thirds of the way through 2018, you can still take advantage of low, fixed interest rates. The trend observed in Les Echos’ previous barometer of mortgage loans in July states that rates have not gone up and, in a few minor cases, they have fallen.  

In August, credit broker Credixia stated: “real estate rates remain close to the low levels observed in November 2016. The majority of our partner banks posted financial conditions down, on average 0.10%, for loans longer than 10 years”. For other brokers, the majority of banks stated that their rates remain unchanged.

All banks offer less attractive rates on certain profiles,” adds Credixia. The broker quotes the following cases: borrowers investing in Île-de-France; health and legal professionals; single borrowers with incomes higher or equal to 4,000 per month; those with higher than a 10% deposit excluding expenses; those with an income exceeding 100,000 euros per year and, finally; borrowers who existing customers of the bank. For these customers, says the broker, “the discount can reach 0.65% if it is an excellent profile. In all cases, the bank will do its utmost to align or do better than the offer offered by the competition in order to retain its client.