Which bank offers the best mortgage rate?
Each bank is more or less competitive depending on the profile of the borrower (duration, age, amount, etc.) and our tool remains indicative because the study of the file will have a great impact on the proposed rate. However, for the same file and the same borrower profile, we can observe significant differences in real estate rates between the different banking organizations.
Thus, to borrow at the best rate, we recommend that you go through an online rate comparator to save time and help you optimize your monthly mortgage payments. A credit broker can quickly give you an indicative rate based on your file. In addition, the latter will be able to carry out simulations and pre-select several mortgage banks to put them in competition and obtain the best rate for your mortgage.
Also consider turning to online banks, a real alternative to traditional banks.
A mortgage rate is calculated from several elements that will impact the annual percentage rate (APR). The APR corresponds to the total cost of your mortgage (insurance, application fees and interest included).
The calculation of a home loan rate includes:
- the bank's interest rate, ie the cost of the loan. This rate can be fixed (this is what is found in 90% of cases), or variable. The interest rate of your loan takes into account the duration of the loan, the choice of bank and your borrowing profile;
- application fee. Some
- borrower insurance. Required by all lending institutions, it covers you in the event of a health problem (illness, work stoppage, disability, etc.) and relieves you of your repayment deadlines. You can take out your insurance with the actor of your choice and thus play the competition;
- The deposit, (the most widespread), or the mortgage. It is a cover for the bank if you cannot repay for a financial reason. Note that if you do not use your deposit during your credit, you may be reimbursed for part of it at the end of your credit.
Finally, the bank often charges administration fees which are included in the APR calculation.
- Tip n°1 – Take advantage of the zero loan rate (PTZ+) :
To be eligible, you must meet a number of criteria: it is reserved for the purchase of a principal residence and for the purchase in the old renovated and in the case of the resale of an HLM housing to its occupant. the PTZ+ is requested under conditions of resources to first-time buyers who have not owned their main residence for 2 years, the new property purchased must respect the BBC 2005 label or follow the 2012 thermal regulations.
Its amount and its repayment conditions depend on the purchase price. of your property, as well as its location and household income. Its repayment period ranges from 12 to 25 years depending on these incomes. By obtaining it, he will be able to finance up to 33% of the amount of your acquisition, which is not negligible.
Depending on your profile (liberal profession, self-employed loan), find out about other subsidized loans that can make you benefit from very competitive rates for part of your mortgage. Start by asking your employer (if you have one) if you can benefit from the 1% housing loan, for example.
- Tip n°2 – Present a low debt ratio :
Very often, banks do not agree to lend beyond a debt ratio of 35% of your income. The amount of your monthly loan payments will never exceed one third of your monthly income. If you manage to have a low debt ratio or if you have a substantial amount of life left over, the bank will trust you more because it will believe in your ability to repay. The nature of the purchase (residential or rental) also has an impact on the borrowing rate, because the rental investment offers more security.
- Tip #3 – Have a stable financial and professional situation:
Do not apply for a loan from a bank if you have had an overdraft in the last few months. It is better to wait until your situation improves in order to present green accounts to the bank. You will also need to prove to your banker that your finances are doing well and that you are repaying your monthly payments when due. Finally, your professional situation will be decisive. You will have more chance of obtaining a loan if you are on a permanent contract or a civil servant.
- Tip 4 – Put your bank in competition with a broker:
For a better rate, you can pretend to change banks because you have seen more attractive conditions elsewhere. (for this you can use our table and contact the first 2 direct banks that emerge). If you have several products in this bank, it should try to retain you and make you a new offer.
- Tip n°5 – Be careful when choosing borrower insurance :
Your home loan insurance can represent up to 30% of the total cost of your home loanhence the importance of not neglecting it.
To be sure not to compromise your budget, be careful to put the different loan insurance companies in competition with each other.
If you have already insured your home loan, know that it is possible to change loan insurance at any time subject to a notice period of 12 months. Changing loan insurance can save you up to €15,000! Do not hesitate to use our tool to obtain the best mortgage insurance rates and calculate the amount of your savings!
What real estate rate to expect in 2022?
At the start of the year, the rise in mortgage rates seems to be confirmed. In fact, after historically low rates, we have observed a slight increase in interest rates for several months, which is explained in particular by an increase in inflation in France.
Key rates, and in particular OATs (the government bonds that serve as a reference for mortgage rates for individuals), indeed followed this rise in inflation.
Fortunately, some banks continue to offer competitive mortgage rates.
Here is our barometer of the different mortgage rate differentials according to the duration of your credit in 2022:
What duration should you choose for your mortgage rate?
The average mortgage term in France is between 20 and 25 years. Here is how borrowers are distributed in relation to the duration of mortgage rates:
Since January 1, 2022the maximum duration of a mortgage by an individual is set at 25 years.
We can remember that the shorter a home loan, the heavier the monthly payment will be. If the repayment of your mortgage is staggered over a longer period, the monthly payment will be lower, which will make it possible to weigh less on your debt ratio and therefore to borrow more. On the other hand, the interest on the credit will be higher. So it's up to you to see what suits you best.
Why take out a home loan online?
Applying for a mortgage online has many advantages:
- A great time saver compared to traditional banking procedures. The use of the internet makes it possible, from some essential information, to find out about your borrowing capacities. Your mortgage searches are thus faster.
- Ease of use. Of a complex nature, the establishment of a mortgage file is facilitated when it is done online. Indeed, between 5 and 10 minutes are necessary to obtain a general overview of the mortgage offers corresponding to you.
- Savings made. Taking out a home loan involves competing by comparing all the offers on the market. As a result, you have the possibility of finding an offer at the best price and totally personalized.
Overall, it is very advantageous to take out a home loan online. Indeed, comparing mortgage offers from online banks gives you the guarantee of getting an offer that suits you completely. Likewise, you won't have any bad surprises because you know, from the outset, the rates and charges of your future home loan.
We used a unique ECR Open Data technology, which is based each month on the analysis of more than 10,000 loan offers posted on our site in order to present to you the banks offering the best current mortgage rate. This tool can thus collect and sort a large amount of data and provide you with the current mortgage rates.
Our comparator allows you to know the real estate loan rates practiced, depending on your profile and your loan, in all banks. It also informs you about the cost of the application fees and that of the mortgage loan insurance and invites you to make a home loan insurance simulation and potential savings you can achieve.
We do not compare the cost of the guarantee/deposit because it represents approximately 1% of the initial amount, regardless of the bank chosen, but it is indeed taken into account in the calculation of the overall rate.
You will get the best real estate rate by comparing offers from banks and by negotiating. Reassure me offers to do it for you thanks to its free online comparator of real estate rates.
Another tip: if you haven't had a banking incident in the last 3 months and have good savings, you'll get a better rate!
The calculation of your mortgage rate depends on several factors:
– the duration of your loan;
– the choice of your bank and the interest rates applied;
– your financial situation.
Mortgage rates constantly fluctuate from month to month. A bank that was competitive yesterday may therefore no longer be competitive today. This is why it is again strongly recommended to compare banks and their rates to make the best choice when starting your project.
Real estate rates are influenced, among other things, by:
– decisions of the European Central Bank (ECB);
– changes in the Obligation Assimilable du Trésor (OAT) rate over 10 years;
– competition between lending banks.