Credit: where to find the lowest borrowing rates?On August 20, 2020 by Ethelyn Murphy
In this month of March 2015, Lille holds the record for the lowest rate on the market on a 15 to 20 year loan. The city can also be satisfied with an increase in real estate purchasing power. Discover the agglomerations offering the best mortgage rates.
With an average rate negotiated on average at 2% over 20 years (a fall of 0.10% compared to February), on 10 large municipalities in France, the mortgage is doing very well. At the local level, however, lenders are pursuing a different strategy, offering more or less attractive borrowing rates.
Real estate interest rate: Lille holds the record
For the lowest rates negotiated by the city, the average is currently between 1.55% and 1.75% over a 15-year borrowing period.
At the top of the list, Lille can be satisfied with offering the best-negotiated rate with 1.55% over 15 years. Toulouse, Marseille and Strasbourg offer rates between 1.65% and 1.70%. And Nantes, Montpellier, Lyon, and Paris grant real estate loans at average rates of 1.75%.
Also leading over 20 years, Lille stands out with a rate of 1.79%. And if Marseille and Toulouse offer an average rate of 1.85%, followed by Strasbourg and Nantes with 1.90%, Montpellier, Bordeaux, Lyon, Nice and Paris are around 2%.
Purchasing power: Marseille crushes Paris
A gain in square meters
If we combine price per square meter and average loan rate per municipality, we can also calculate the evolution of real estate investment capacity of the 10 largest cities on the basis of monthly repayment of $ 1,000 over a period of 20 years.
If Marseille is still at the top of the podium, with the possibility for buyers to obtain an area of 89 m2 (+2 m2 compared to February), Toulouse also posts good progress by gaining 2 m2 (surface of 81 m2). Nantes achieves a gain of 1 m2 for 78 m2. And Montpellier and Lille are following the trend with 76 m2 (+ 2 m2) and 69 m2 (+ 1 m2) respectively.
A classification that does not change
In cities showing a slight increase in prices, buyers see their property purchasing capacity unchanged. There is indeed no particular development for Bordeaux (63 m2) and Lyon (54 m2). Finally, as always, the City of Lights wants to be the least accessible with the possibility of purchasing only 23 m2 for the same credit.