Real estate credit: New rate cuts on loans to 20 years

Whether the average rates observed or the best rates, for profiles with the best records, mortgage rates continue to decline according to the Central Financing.

As September approaches, real estate rates continue to fall. Whether the average rates observed or the best rates, for profiles with the best records, the 20-year rates record the most significant decreases.

Candidates for accession will thus be able to benefit from more attractive conditions in September, with -0.09% on the average rates observed and up to -0.18% for the best files.

As for the duration of 15 years, they spend for the first time this year under the symbolic bar of 1% with average borrowing rates at 0.95%.

Rates below inflation, towards credit enrichment

Exceptional conditions and more particularly with regard to inflation. In 2018, the inflation rate was 1.80% and for 2019 a rate of around 1.20% is expected. A borrower who subscribes to a fixed-rate mortgage, under the impact of inflation and provided that his salary increases, will see the weight of his monthly repayment decrease.

Thus, for a monthly payment of 950 euros and a salary of 3,500 euros per month which would progress at the same rate as inflation, of 1.50% on average over 5 years, the borrower would see his debt go from 27% to 24%. % in just 5 years.

"September 12, 2019 will be a pivotal date. The European Central Bank should indeed announce its measures to support the economy, which should be very accommodative and move in the direction of further lowering rates. Says Sylvain Lefevre, President of La Centrale de Financement.

Should we expect or expect negative rates?

Faced with this questioning more and more common, Sylvain Lefevre tempers: "The rates currently proposed are already exceptional for households including the most modest, which could not, until now, claiming accession. Rates, now lower than inflation, already allow for credit enrichment. More extreme models, such as those applied by Japan and Germany in particular, have not been proven so far, and our French banking system is not ready for such a shock. ".

For a borrowed amount of € 200,000 over 20 years at 1.14%, the monthly payment will thus amount to € 946.80 with a total cost of credit of € 27,232. The average property rates of September 2019 by duration of borrowing

The generally observed rate conditions decrease over all durations studied in this barometer. The 15-year rates are down 0.08% and 0.06% over 25 years. A decrease of 0.01% is recorded on the loans at 7, 10 and 12 years. The biggest decrease concerns financing at 20 years with -0.09%.

Best Real Estate Rates for September 2019 by Duration of Borrowing

A borrower with a very good record can apply for financing, with a rate excluding insurance, of 0.15% over 7 years, 0.49% over 10 years, 0.55% over 12 years, 0.67% over 15 years and 1.05% over 20 years . Compared to the previous month, the best rates over 20 years are down by 0.18%.

Robot portrait of the borrower