Real Estate Credit: Interest rates are coming down again from July 1, 2024

Real Estate Credit: Interest rates are coming down again from July 1, 2024

From July 1 to September 1, the interest rate will be 6.16% compared to 6.39% in the second quarter.


Clothing rate cut from July 1, 2024 © FranceTransactions.com

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Reduction in usurious rates

Interest rates applicable on fixed-rate household mortgage loans of 20 years or more fell by 23 basis points, reflecting a decline in rates charged by banks over the past three months. From July 1 to September 1, the interest rate will be 6.16% compared to 6.39% in the second quarter. This is the first rate cut since 2021 for this category of real estate loans, which represent more than two-thirds of new loan production, and we have to go back to April 2017 to find a drop of the same magnitude.

Borrow at 6.16% over 20 years

Cost of mortgage loan at interest threshold of 6.16%

Borrow €220,000 over 25 years at 6.16% (APR 6.16%, so borrower insurance is included), it’s paying off €211,717.34 in interest, viz. 96.24% of the amount borrowed ! The monthly payment will be €1,439.06, a debt rate of 33.47% for a net income of €4,300 per month. Estimate the real cost of your real estate loan using our credit simulator!.

Interest rates applicable to other categories of real estate loans (less significant in number and amount) have not yet started to come down, but have remained stable at 6.13% for fixed rate loans with tenors between 10 and 20 years. previous quarter.

wear threshold

Interest rate benchmarks
Interest rates for individuals (applicable in Q3 2024) (1)
Maximum rate for real estate loans (borrowing above €75,000)
Credit interest rate for tenure less than 10 years 4.60%
Credit interest rate for tenure less than 20 years 6.13%
Credit interest rate for a period of 20 years or more 6.16%
Bridging Loan Interest Rate 6.77%
Variable rate credit interest rate 5.97%

(1) Source of rates: Banque de France

Average Fixed Market Rate (APR) for Real Estate Loans – Data updated as on 03/06/2024
Credit period Higher rates (15% contribution) Average rate (30% contribution) Low rates (50% contribution)
7 years 4.06% 3.77% 2.99%
10 years 4.26% 3.87% 3.27%
15 years 4.76% 4.07% 3.72%
20 years 5.06% 4.22% 3.92%
25 years 5.76% 4.38% 4.07%
Updated on 03/06/2024

. Insurance rates are included with an average borrower insurance rate of 0.45%. Average market rates (with 30% contribution), calculated on statements from real estate loan brokers. Indicative data only.

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