Far from having achieved their goals , banks have revised their mortgage rates to boost real estate loan subscriptions in September 2018 – low rates in 2018, especially among young buyers and first-time buyers.
A nice attractiveness of rates in September 2018!
The CSA Observatory points out that “in the face of weaker demand and rising property prices, most credit institutions have improved lending conditions”. Lagging behind their credit production, banks are trying to attract borrowers with low rates.
In concrete terms, for the 2018 school year, the average fixed rate for a loan over 20 years is 1.60%, while it was 1.74% in September 2017 and 2.50% 3 years ago. ! As a reminder, the current values are close to those of September 2016 (1.58%). For 15-year credits, it is at 1.20%, while it is at 1.85% over 25 years.
Low rates, moreover, easily tradable, on average, 0.1 to 0.2 points depending on the profile of the borrower …
Young and first-time buyers, a mortgage?
Highly targeted by banks, young people and first-time buyers can enjoy great discounts : a significant effort currently made by institutions to make them subscribe a mortgage for this fall of 2018! For these profiles, banks also favor long loans of 25 or 30 years.
By their side, liberal professions related to health or legal , borrowers with significant income (more than 4 000 € per month), households receiving more than 100 000 € per year, Parisians are obviously profiles for which banks can apply haircuts.
On this basis, when a profile combines several of these factors, the rate decrease can go up to 0.65% !
Some examples of the low rates obtained by our brokers!
NYC network and broker of the Oriental region, managed to win a 20-year mortgage for his clients, at a low rate of 1.30% : the amount of financing requested to acquire a village house was 132,690 €.
For its part, one of its brokers, obtained the rate of 1.60% for a mortgage of € 45 491 over 20 years, contracted to buy an apartment. While another, present in the Bouch, managed to obtain the rate of 1.85% over 25 years, for a loan of € 149,630 to buy a townhouse. Two very nice operations taking into account the borrower profiles and the type of property to be financed.