Are you planning how to get a mortgage in France?


With interest rates rising in Europe, perhaps you’re wondering if now is even a good time.


We take a look at the current situation, especially for overseas buyers thinking about buying an apartment in Paris.



Mortgage interest rates in 2023


This year, ongoing events such as the crisis in Ukraine are impacting interest rates across Europe.


It’s a slow rise here in France – from 1% over the past 20 years – to new rates between 3.2% and 3.5% for the most creditworthy borrowers.


Some reports are indicating interest rates could approach 4% by summer 2023.

This is affecting the mortgage market – with some French banks suspending new mortgage applications.


But for perspective, the local rates are still lower than many other countries, especially in Europe and the USA. This is a topic we covered in a blog earlier this year.



Strategies to manage rising interest rates


If you are looking for an alternative to a French mortgage, there are other strategies you can consider.


External loan insurance is an option – and can be an effective way to reduce the APR of your borrowing and stay below the usury threshold.


Perhaps you have a property overseas which you can remortgage in your home country at a better rate.


Or you might want to consider an alternative to the traditional bank loan, such as borrowing between individuals, life annuity purchases, or even real estate crowdfunding.


A French mortgage doesn’t have to be your only option.



Online rental management


A growing system for property owners is online rental management. These new companies operate only online, promising lower rates and faster rental of your investment property.


These can let your apartment on a medium-term basis, using the French mobility lease – a medium-team lease agreement for a furnished apartment.


With interest rates rising, online rental management could be an option for owners wanting to maximize revenues from their property.



Buying in Paris as an investment


Is investing in a Paris apartment a good idea, despite the new interest rates?

We believe the answer is still a firm ‘yes’.


Paris has one of the most resilient property markets in the world, thanks to its unique situation.


With very limited new construction permitted in the French capital, most properties here in period buildings. This means there is always limited inventory to meet the high demand.


The selling and rental markets remain buoyant in 2023, with real estate prices holding firm. This always makes investment an attractive option.


There is also the safety in ‘Paris stone’ over other forms of investment such as stocks and shares, especially in times of economic uncertainty.


The bottom line – real estate investment in Paris continues to be an excellent option.



Looking to get a mortgage in France?


We hope you have found this blog informative.


If you have plans to get a mortgage in France and want tailored advice, we can help by putting you in touch with a trusted mortgage broker. They can give you an expert view on your financial situation.


Please do get in touch with the real estate experts at 56Paris today.


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All information given in this blog is current at the time of writing and is a guide only. At 56Paris, we always recommend consulting a legal and/or finance professional for advice on your own personal situation.