Credit: the monthly payments are more and more important



According to a recent study, monthly mortgage payments have increased in almost all cities, especially in large cities where the increase is around 10%.

Despite its dynamism, the current real estate market is marked by the joint rise in interest rates on housing finance and by the continuous rise in prices per square meter. The main consequence of this cocktail is the fall in real estate purchasing power. This is revealed by recent barometers from lenders, banking intermediaries and real estate professionals.

 

Real estate purchasing power continues to decline

Real estate purchasing power continues to decline

Admittedly, the continuous rise in rates for several months has not had too much impact on the real estate market or the creditworthiness of buyers, but it is clear that becoming a homeowner is becoming more and more expensive, whatever the city.

In the capital, this real estate inflation concerns the entire Paris region, but it varies between 2.5% and 4.3% depending on the departments. The rise in prices is also observed in all the agglomerations, but it must be noted that it is more marked in the big cities.

 

Monthly loan payments also increased everywhere

loan payments also increased everywhere

According to some banking intermediary networks, mortgage borrowers saw their monthly mortgage payments increase between January and June 2017. As the rise in prices per square meter, that of monthly loan payments also affects all regions, but varies depending on the city.

In fact, although recent statistics show that rates remain broadly favorable to the purchase of real estate or mortgage redemption, the average monthly payment for a mortgage has increased significantly since the beginning of the year.

Since January 2017, monthly payments have increased by almost 10% in Paris, they have increased by almost 9% in Bordeaux and have increased by 1 to 1.5% in Lille, Montpellier and Toulouse. For specialists, the main cause of the increase in monthly payments is the rise in prices, far ahead of the rise in interest rates.

In addition, despite the “homogeneous” increase in the cost of housing finance, the figures also show that credit repurchase operations remain advantageous in almost all agglomerations, particularly large cities. However, it is always possible to claim the financing conditions of large cities by seeking the services of a banking intermediary.

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