Banks have to lend money to make a profit but we have to look back a few years to understand the current situation.
In 2017 and 2018, French banks embarked on a volume war and achieved sufficient number of mortgage files by facilitating the conditions for granting loans.
By end of 2019, they became more restrictive under the leadership of the Banque de France and the High Council for Financial Stability (Haut Conseil de Stabilité Financière/HCSF).
Since the beginning of this year, mortgage rates increased mechanically to compensate for the volume drop.
With the onset of the coronavirus crisis and the weakened budgetary situation of many households, banks continued to apply additional restrictions in their risk analysis.
For this month of August 2020, we are seeing stable rates and conditions for the safest profiles but difficulties for everyone else to obtain a mortgage in sectors affected by the crisis (tourism, aeronautics, catering, etc.).
Current mortgage rates for August 2020
| Fixed rate(1) | Term | Monthly repayment
for 10 000€ borrowed |
|---|---|---|
| 0.75% | 10 years / 120 months | 86.52€ |
| 1.00% | 15 years / 180 months | 59.85€ |
| 1.25% | 20 years / 240 months | 47.11€ |
| 2.15% | 25 years / 300 months | 43.12€ |
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
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