Mortgage rates on the Côte d'Azur
By definition, the mortgage rate is a device that gives you an idea of the amount you could benefit from for the completion of a real estate project. The latter can be the purchase or rental of a house, apartment, villa, land and any other type of property. Established by banking and lending institutions, this loan rate is generally expressed as a percentage. According to the Consumer Code, in article L313-2, the lender must indicate the mortgage rate in contracts and credit offers. These elements mentioned in the agreements are also called TEG (overall effective rate) or APR (annual percentage rate of charge). Consequently, they cannot exceed the ceiling which has been established by the Banque de France.
In order to know the best loan rate in a defined region, it will be necessary to take into account various points. Among these important points, there is the duration of the loan as well as the profile of the debtor. Indeed, if a person wishes to take out a mortgage, the analysis of his profile is an essential step. To do this, you will need to check the quality of your bank account management, your savings amount, your income, the existence of an overdraft or even the use of consumer loans. For example, a rate is excellent when the loan is spread over a term of seven years with a percentage of 0.35%. As this duration goes up, the real estate rate will also increase.
What is the mortgage rate on the French Riviera?
You should know that the mortgage rate is not fixed, it can constantly change depending on the quality of life. For the moment, on the French Riviera, the best rate is 0.69% over a period of 15 years. If the borrower chooses 20 years, he benefits from a percentage of 0.89%. Over a 25-year period, he will have 1.06% mortgage rate on real estate. As a reminder, more than 40% of mortgage loans were taken out over 25 years. Since the investment without contribution is considered by the banking establishments, the real estate rates in French Riviera for the month of April 2021 have fallen.
As part of the implementation of the real estate rate in PACA, several criteria were taken into account. The first factor is the length of the loan. Obviously, a short-term loan equals a lower total loan amount. As for other factors, banks also control the location of the property to be acquired, but above all the profile of the customer. In addition, the higher the income the applicant, the more favorable the credit rate he will enjoy. Having their own commercial policies, banking institutions have a different validation criterion. For example, there are those who accept people who have a debt level of 33%, while other organizations do not take this risk.
The real estate market on the French Riviera
Famous for attracting tourists, the French Riviera is a great place to buy real estate. Whether for the purpose of making a rental investment or living there permanently, this region has many advantages. As for the coastal area, it goes from Cannes to the border with Italy. In the last few years, the real estate market on the Côte d´Azur has seen a few drops, especially in large cities such as Nice, Antibes and Cannes.
If you go through Monaco, luxury real estate has the upper hand. Currently, over 96% of houses and apartments in Monaco have an average cost of 54,500 euros per square meter. However, this value has rapidly doubled in recent decades in the municipalities of La Turbie, Beausoleil, and even Cap-Martin.
For Nice, the capital of the Alpes-Maritimes, property prices are still volatile. In principle, the square meter is worth 4,220 euros. This figure can vary since there are more expensive neighborhoods, in particular in Mont-Boron where there are villas at 10,000 euros per square meter. However, it is the seaside residences that are the most sought after by rental investors. In Cannes, the average price of real estate is 5,100 euros per square meter. The local market is quite tight there due to the low number of buyers.
The value of a home varies according to each neighborhood. On La Californie or the Croisette, it can reach 7,000 euros per square meter. However, in other places like La Source or Bocca, the price is from 3,600 euros to 4,600 euros per square meter.