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It is more and more difficult to obtain mortgages, because they are expensive. Present on the 12/13 set, Wednesday November 9, journalist David Boéri explains why.
Obtaining a mortgage has become very difficult. Over the year 2022, the continuous rise in interest rates has changed everything. “To better visualize this increase, let’s take the example of a loan of 200,000 euros over 20 years. On average, you could land a borrowing rate of 1.2% in January, then 1.5% in April, 2% in July, this average even rose to 2.3% in October. This is a rate not seen since 2015“, how the journalist David Boéri, present on the set of 12/13, Wednesday, November 9. The cost of a loan over 20 years has thus more than doubled and many French people have had to give up their projects.
Reduce the number of square meters
Rising rates have therefore reduced your real estate purchasing power “because it mechanically lowers your borrowing capacity, the amount you can borrow“, continues the journalist. This decline in purchasing power is also reflected in the number of square meters. “Taking for example the average prices per m2, found on the seloger.com site, 30,000 euros less in your budget, this represents 13m2 less in Brest“, details David Boéri.