French real estate credit costs are really low.
Could they reach zero? Unlikely but the current rate is anticipated to last a long time.
According to this article in French in La Figaro the Crédit Logement / CSA observatory who monitors interest rates says the average rate for all durations combined, amounts to 1.2% (ie the current level of inflation). If you have a loan over 15 years, it is 0.96% on average, 1.14% over 20 years and 1.37% over 25 years. This is definitely not a zero interest rate but extremely interesting to buyers.
This low interest rate has the banks overwhelmed with requests for loans so when you find a property you need to allow lots of processing time in the contract for the loan application.
According the the La Figaro article it is “The tense international environment (that) is driving down government bond yields in negative territory. The explanation? The trade war between the United States and China, geopolitical tensions between America and Iran, sluggish growth in Europe or the arrival of Boris Johnson, favorable to Brexit, make investors fear the worst.”
No one is sure but if you plan on buying French real estate and getting a loan in France this looks like a very good time.
If you would like us to connect you with an English speaking French mortgage broker today to help you negotiate the best loan at the best rate contact us today so you are in contact with the broker before you find the property of your dreams. This will enable you to know what you can afford.
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Cynthia Sadler wrote ” I am so grateful to you for your help, and I have already spoken to friends who are planning to retire in France after their children graduate from college in 5 or 6 years, letting them know about the wonderful support that ESREA France will be able to provide when they start looking for a house to buy. You can be sure that I’ll be referring other friends who are thinking about relocation possibilities to you as I learn of that interest!I”
Tanya Coletz wrote “I can’t recommend David enough, such a refreshing experience after months of trying to find suitable professionals myself he managed to find English speaking, qualified and responsive recommendations immediately. He also responded to my emails on a French holiday and followed through on every promise at a very reasonable price. I’m very grateful for his help and highly recommend his professional service”
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