The disparity in interest rates can be explained by the commercial policies of the banks : these organizations are free to adjust their rates, depending on regional competition and their objectives in the area, in terms of real estate loans. Traditionally, the best rates will direct you towards a loan in the big cities , even if they do not constitute your place of residence.
A rate built according to the commercial policy of banks
If the interest rates of real estate loans are at their lowest, it is not a question of subscribing blindly: many sites encourage you to make a simulation on online simulators, the differences observed between the different French regions are likely to make you realize great savings.
Indeed, the extremely competitive trade policy pursued by some banks explains these variations. And if all profiles can benefit, we note a special effort made to the best records, which allow the bank to conquer new customers, including profiles called “premium”, the definition also varies by region.
In certain sectors, symbolic barriers have been removed : 2 regions under 1% for a loan of 15 years and 4 out of 7 regions are at or below 1.30% (minimum rate) for a loan over 20 years, excluding negotiation.
However, this comparison is not useful to the borrower because the banks rely on a local rate strategy: none wanting to compete with the establishment of another region, in the extent to which the regional responsibility for handling cases is definitely local.
Are the credit spreads important?
After having fallen for a long time, it seems that fixed rates are stabilizing now : a movement that concerns all French regions, since October 2016. Note the observation in our network of an increase in some cities like Perpignan …
On the basis of 42 mini rates studied, or 7 regions with 6 durations, 37 of them have not changed in a month. While knowing that the 4 rates having fallen knew variations of the order of -0,02 and – 0,05 point.
Regarding average rates, the decline in interest rates is more significant, while being very reasonable : 23 of the 42 rates recorded a drop of – 0.05 to – 0.15 point. For example, on loans of 15 to 20 years, it is possible to obtain mortgages between 1.40% and 1.60%, depending on the region.
Can we borrow in one city and buy in another?
In order to optimize your borrowing conditions, it is quite possible to buy real estate in a city that is not his place of residence . Ideally, it is best to look for an organization in a location with a high concentration of banks, in order to compete with each other. Indeed, for some sites, the strategies of conquest of banks are practiced on the whole territory, because their objectives are also very ambitious in Province. However, a major difficulty then arises: the competence of the bank !
At , we think that the purchase of a property is definitely associated with the borrower’s place of residence – be it the acquisition of a principal dwelling or a rental property . And due, the competence of the banks remains local to take charge of the file. Indeed, as it is customary to claim the domiciliation of income, it is, for example, extremely difficult to be financed by a bank in Lille while you live in Perpignan.
Compare bank offers based on key criteria
In all cases and whatever the banking criteria, it is advisable to address several establishments to compare the offers . The Scrivener law imposes on each of them, the formalization of their proposal, with mandatory information, such as the amount to be repaid (with or without insurance), the details of the costs or the terms of the credit. All elements intended to facilitate comparison.
It should be noted that European law imposes the APR, which takes into account the nominal rate, the insurance of credits, the fees of the files and the brokerage fees (free at ). It is also worth comparing the management fees (associated with the domiciliation of income almost always required) and the home insurance, which can be part of the counterparties requested by the bank.