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Are French Mortgage Rates Still Attractive?

If you are interested in buying French property you know one of the key elements related to your purchasing power is the French mortgage interest rates.

The good news is that the French mortgage rates are still low but it many not remain this way for long.

According to the latest report from the French mortgage broker EMPRUNTIS the average French mortgage interest rates increased very slightly by 0.05 percent.

According to EMPRUNTIS the average rate for a 15 year French mortgage is now 3.15 percent.

IMPORTANT NOTE:
French banks are typically competitive this time of year since between the months of February to May many people start to think about investing in a real estate project so the banks want to be competitive to get your business. Then after the month of May this year 2014 who knows what may happen.

In addition, a new law has come into place in France that gives the consumer the right to cancel the mortgage insurance they have with the bank that gave them the mortgage and replace the insurance  with a less expensive but equal insurance from another insurance company. This cancellation must be done within the first year of obtaining the insurance (contact your bank to be sure of all the details).

This means that French banks will now have less of a gain on the income from insurance policies they sell and French banks then need to gain more on the interest rates they charge to consumers. So it is anticipated that rates need to go up so banks can maintain their desired profit margins.

A great way for you to keep up to date on the French mortgage market is to be in touch with an English speaking French mortgage broker. If you would like free assistance to find an English speaking French mortgage broker contact us today. We also offer you free assistance to find you an English speaking French real estate agent.

Read the original article in French here