Barometer of real estate purchasing power January 2025: gain square meters by changing borrower insurance
To guarantee your property loan, you must take out borrower insurance. The regulations allow you to freely choose the contract and change it at any time. Magnolia.fr calculates each month the number of additional square meters that you can acquire in the 20 largest French metropolises by changing your loan insurance. The delegation of borrower insurance remains the only savings lever to significantly lower its overall effective annual rate (APR) and remain under usury. Bank insurance versus delegated insurance We offer 3 borrower profiles, and calculate for each the number of additional square meters that it is possible to acquire by replacing bank insurance with competing individual insurance. Profile 1: you are a first-time buyer, aged between 25 and 35; you borrow €200,000 over 20 years at the nominal rate of 3.35% (rate for a good file as of January 9, 2025); the bank’s insurance is offered at a rate of 0.34% (average bank rate), i.e. a cost of €13,600; on the property loan insurance comparator Magnolia.fr, the insurance displays the rate of 0.09%, i.e. the average rate observed for files with the same profiles processed until December 2024. The cost of the insurance is €3,600. You save €10,000 by opting for delegated insurance. Profile 2: you are between 25 and 35 years old and borrow from 2 as first-time buyers; you borrow €200,000 over 20 years at the nominal rate of 3.35% (rate for a good file as of January 9, 2025); the bank’s insurance is offered at a rate of 0.34% (average bank rate) on each head, representing a cost of €27,200; your Global Annual Percentage Rate or APR is displayed at 4.52% (excluding administration fees and guarantee fees). on the property loan insurance comparator Magnolia.fr, the insurance displays the rate of 0.06% on each head, i.e. the average rate observed for files of the same profile processed until December 2024. The cost of insurance is €4,800. Your APR drops to 3.60% excluding warranty fees and other related expenses. You save €22,400 by opting for delegated insurance. Profile 3: you are between 35 and 45 years old. you borrow together the sum of €400,000 over 20 years at the nominal rate of 3.35% (rate for a good file as of January 9, 2025); the bank’s insurance is offered at a rate of 0.34% (average bank rate), with a 100% loan insurance ratio on each head, representing a total cost of €54,400; your APR appears at 4.52%, excluding guarantee costs (mortgage or deposit). Note that the usury rate in the fourth quarter of 2024 is 5.67% for durations of 20 years and more, compared to 5.85% in the previous quarter. on the comparator Magnolia.fr, insurance is offered at a rate of 0.16% (average rate observed for files with the same profile processed until December 2024). Everyone is insured for 100% of the amount borrowed, the total cost of insurance is €25,600. If we apply an insurance rate of 50% to each head, the cost of insurance drops to €12,800. You save €28,800 with a 100% share on each head or €41,600 with a 50/50 share. The APR falls to 3.94% or 3.67% respectively, leaving you more than enough space to integrate additional costs. How many additional square meters can these three profiles gain in January 2025 thanks to the delegation of real estate loan insurance? Cities Average price m2 apartment* Number of additional m2 with €10,000 savings on borrower insurance Profile 1 Number of additional m2 with €22,400 savings on borrower insurance Profile 2 Number of additional m2 with €41,600 savings on borrower insurance Profile 3 Saint-Étienne €1,119 8.93 m2 20.01 m2 37.17 m2 Le Havre €1,942 5.14 m2 11.53 m2 21.42 m2 Nîmes €2,115 4.72 m2 10.59 m2 19.66 m2 Dijon €2,447 4.08 m2 9.15 m2 17 m2 Reims €2,340 4.27 m2 9.57 m2 17.77 m2 Grenoble €2,451 4.07 m2 9.13 m2 16.97 m2 Toulon €3,168 3.13 m2 7.07 m2 13.13 m2 Angers €3,208 3. 11 m2 6.98 m2 12.96 m2 Lille €3,305 3.02 m2 6.77 m2 12.58 m2 Montpellier €3,352 2.98 m2 6.68 m2 12.41 m2 Toulouse €3,462 2.88 m2 6.47 m2 12.01 m2 Marseille 3 €621 2.76 m2 6.18 m2 11.48 m2 Nantes €3,302 3.02 m2 6.78 m2 12.59 m2 Villeurbanne €3,372 2.96 m2 6.64 m2 12.33 m2 Strasbourg €3,727 2.68 m2 6.01 m2 11. 16 m2 Rennes €3,774 €2.64 m2 5.93 m2 11.02 m2 Bordeaux €4,436 2.25 m2 5.04 m2 9.37 m2 Nice 5 €130 1.94 m2 4.36 m2 8.10 m2 Lyon €4,362 2.29 m2 5 .13 m2 9.53 m2 Paris €9,355 1.06 m2 2.39 m2 4.44 m2 *BestAgents estimated prices as of January 1, 2025 (net seller price) The savings calculated are the maximum potential savings if the change of insurance occurs within the month of signing the loan offer . Get your loan and gain square meters thanks to the insurance delegation The state of the old real estate market in January 2025 Unlike December 2024 when the fall in real estate prices had slowed down somewhat, the decline is evident in January . With the exception of Bordeaux, Toulon, Toulouse, Strasbourg and Paris where values gain a few euros or even a few tens of euros, everywhere else prices are losing ground. The decline is even very marked in most of these cities, with a loss of up to €200 per square meter in one month as in Lyon, Villeurbanne or Grenoble, which is important and unprecedented in such a short period. The phenomenon is symptomatic of a market in crisis, swallowed up by the absence of political decisions in favor of real estate. Borrowing conditions in January 2025 January 2025 nevertheless starts under good auspices with rates still trending downward. Today, we have debt below 3.50% for all durations. To benefit from the best borrowing conditions in January 2025, compare bank offers and get support from a real estate loan broker. Note that the usury rates for periods greater than or equal to 10 years are also decreasing, a sign that the rates granted by banks the previous quarter have contracted. How many more square meters by changing insurance in January 2025? Borrower insurance weighs heavily in a real estate project, and represents on average 30% of the cost of your credit. For people who present increased risks (age, health, profession, smoker, practice of a dangerous sport), the insurance rate can go up to 1% of the borrowed capital. Thanks to the Lagarde law, you have the right to freely choose the insurance to guarantee your property loan. Compare offers and pay delegated insurance up to 4 times cheaper than the bank contract. Potential savings can be colossal and amount to thousands of euros over the repayment period. For a loan of €250,000, the average gain is estimated between €5,000 and €15,000. The possible gain in Paris is minimal given the high cost of real estate. Elsewhere, where the cost per square meter is between 2 and 8 times cheaper, the delegation of loan insurance allows you to finance additional square meters: Profile 1: between 1.94m2 (Nice) and 8.93m2 (Saint- Étienne) Profile 2: between 2.39m2 (Paris) and 20m2 (Saint-Étienne) Profile 3: between 4.44m2 (Paris) and 37.17m2 (Saint-Étienne) As a reminder, the average size of a bathroom is around 8 or 9m2, and that of a studio between 15 and 21m2. Long live the Lemoine law! The Lemoine law of 2022 is a formidable legislative step forward which unfortunately lacks visibility. However, it allows significant savings for most borrowing households, by giving them the possibility of changing insurance at any time, without waiting for the expiry date. It also contains a major improvement for people affected by illness: loan insurance without a health questionnaire as long as the insured portion does not exceed €200,000 and it is paid before the borrower’s 60th birthday. . Consider going through a specialized broker to benefit from expertise and effective intermediation with credit institutions. It supports you in selecting competitive loan insurance, which meets your situation and the bank’s requirements in terms of guarantee equivalence (minimum coverage).
Related News :