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Video length: 3 min
Real estate: borrow in another region to get a better rate
Real estate: borrow in another region to get a better rate
(France 2)
Real estate loan rates vary depending on the region of France. For some buyers in Île-de-France, it is more interesting to borrow in another region.
It is possible to buy the apartment of your dreams in Paris by borrowing from another city. Can going to a different region to finance your real estate project lower the rate and therefore the cost of your credit? A man is going to buy his first apartment in Yvelines, but his file was handled by a broker in Orléans (Loiret). She managed to obtain an attractive rate of 3.65% over twenty years. In Île-de-France, he would have paid more than 71,000 euros in interest compared to 61,000 euros in Orléans.
A very good 20-year rate can be negotiated on average at 3.75% in Île-de-France compared to 3.7% in the west or 3.65% in the south-west. These rate differences mainly come from mutual banks which can apply different rates from one region to another. Competition also allows you to obtain a more attractive rate by contacting your family bank in the region. The credit war between banks is expected to continue in 2024.
