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Since January 2022, many consumers wanting to buy a home have had to give up, because the interest rate for mortgages has increased in France. How does this increase translate?
A couple who own a home in the Paris suburbs want to move to have something bigger and another who wants to become one wants to take out a loan to help them with their project. In January, the relatively low rates allowed them to hope to realize their dreams. For the owner couple, the rate was at 1.12% at the time. For those who want to become owners, the bank could lend 258,000 euros, the price of the house they want.
Today, the rate is no longer 1.12%, but 1.7%, which will cost them an additional 27,000 euros. For the couple who want to become owners, the bank can only lend 245,000 euros, so they cannot buy.
– Better rates