Find out why banks are cutting their property rates before Christmas

Despite the unstable political context in France, mortgage rates continue to fall, making these loans increasingly accessible for many households. Online brokers recently revealed the lowest rates as well as the average rates charged by banks in December. This downward trend in mortgage rates offers potential borrowers an opportunity to carry out their real estate project under more advantageous conditions. This is explained by various economic and financial factors which influence the real estate loan market in France.

Simulate your new borrowing capacity

A significant drop in mortgage rates in 2024

After a sharp increase in real estate loans, rates have finally started to decline since the start of 2024, reaching a historic low in December. This trend should allow a growing number of French people to access property in 2025.

Increasing borrowing capacity for French citizens

According to the online broker Cafpi, the borrowing capacity of French households has increased significantly since November 2023. Indeed, between November 2023 and November 2024, borrowers can now acquire more square meters in different cities in France . For example, in Nantes, it is possible to purchase an additional 11.43 m², while in Toulouse, you can acquire an additional 9.66 m² and in Reims, an additional 9.01 m². Even in Paris, it is now possible to buy 3.04 m² more than a year ago.

Advantageous borrowing conditions for future owners

The average rate is expected to be around 3% at the start of 2025. After almost a year and a half, mortgage conditions are more favorable, with no average rate exceeding 3.50%. Banks are making efforts to make home loans more accessible by relaxing granting conditions and reducing rates. Some even go so far as to offer zero-rate packages specifically aimed at first-time buyers, as Nassima Khiari from Empruntis explains.

In conclusion, now is a good time to take out a home loan, because even though the fall in rates is expected to continue in 2025, an increase in purchase prices is expected. It is therefore recommended to take advantage of current conditions by renegotiating your rate with your bank to benefit from the future drop in rates. Average rates for a mortgage loan vary depending on the duration, reaching 3.15% for 15 years, 3.35% for 20 years and 3.55% for 25 years. Borrowers can also negotiate lower rates with their bank.