On a European scale, France is on the podium of the countries where outstanding mortgage loans are the most important. The attractiveness of the rates is partly responsible for this dynamism.
6% more outstanding in 2017
The French are fans of real estate. This state does not change over the years. In fact, buying a home is usually the first major investment in a household’s life. To finance a property, it is customary to go into debt by using a mortgage.
This craze for real estate is not new, but it has accelerated in the last two years. Why ? The answer is simple: interest rates for home loans are currently in an attractive phase. The average rate calculated in April 2018 thus limits to 1.47% for all loan durations combined. In the same way, the loans over a relatively long period as over 25 years see their average is fixed at 1.69% according to the Observatoire Crédit Logement.
While staying below the 2% mark, interest rates do show levels that have not been observed since the 2000s. The period is therefore conducive to real estate acquisition. Between 2016, the year of the historic decline, and 2017, the loans contracted increased from 250 billion euros to 270 billion.
The French repay nearly 1000 billion euros
On the outstandings side, these amounted to 984 billion euros at the end of 2017. This amount takes into account all capital remaining due as well as the interest on all mortgages that still have course. Over 12 months, this statistic changes by 6%. By flirting with the bar of 1 000 billion euros, France stands in the top 3 in Europe behind the United Kingdom and Germany who take the lead.
On average, a French owner still has to repay 52,000 euros to his banking establishment but this data is not significant because it includes all the owners ie those who have a loan in progress and those who have already completed the repayment of their debt. In fact, the average amount still to be reimbursed is closer to 100 000 euros. It remains to be seen whether the year 2018 will see its outstanding progress, but this is another question.