Magnolia.fr Real Estate Purchasing Power Barometer May 2023: Gain More Square Meters by Changing Borrower Insurance!

Magnolia.fr real estate purchasing power barometer May 2023: gain square meters by changing borrower insurance!

To secure your home loan, you must take out borrower insurance. The regulations allow you to freely choose the contract and to 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 cities by changing loan insurance. The monthly payment of the wear rate since February 1 somewhat facilitates access to the mortgage, the delegation of borrower insurance remains however the only lever for savings to significantly lower its annual effective annual rate (APR) and remain under wear. Bank insurance against 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 the bank insurance with a 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 3.70% (rate for a good file on May 11, 2023); bank insurance is offered at a rate of 0.34% (average bank rate), ie a cost of €13,600; at the home loan insurance comparator Magnolia.fr, the insurance displays the rate of 0.10%, i.e. the average rate observed for files with the same profiles processed until April 30, 2023. The cost of insurance is of €4,000. You save €9,600 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 3.70% (rate for a good file on May 11, 2023); bank insurance is offered at the rate of 0.34% (average bank rate) on each head, ie a cost of €27,200; your Global Effective Annual Rate or APR is displayed at 4.87% (excluding administration fees and guarantee fees), i.e. 48 points above wear and tear for May 2023 (4.52%); your loan application is refused. at the home loan insurance comparator Magnolia.fr, the insurance displays the rate of 0.11% on each head, i.e. the average rate observed for files with the same profile processed until April 30, 2023. The cost of l insurance is €8,800. The APR drops to 4.13% and your request is accepted. You save €18,400 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 3.70% (rate for a good file on May 11, 2023); bank insurance is offered at the rate of 0.54% (bank rate, with a 50% quota on each head), ie a total cost of €43,200; your APR is displayed at 4.64%, i.e. 12 points beyond wear and tear (4.52% in May 2023 for loans with a duration of 20 years and more). with the comparator Magnolia.fr, insurance is offered at the rate of 0.13% (average rate observed for files with the same profile processed until April 30, 2023). Each can be insured for 100% of the amount borrowed, so you are much better protected. The total cost of the insurance is €20,800. If we keep a 50% insurance quota on each head, the cost of insurance drops to €10,400. You save €22,200 with a 100% quota on each head or €32,800 with a 50/50 quota. Importantly, you get your funding, as the APR drops to 4.19% or 3.98% respectively, giving you plenty of room to incorporate ancillary fees. How many additional square meters can these three profiles gain in May 2023 thanks to the delegation of mortgage loan insurance? City Average price m2 apartment* Nb of m2 Additional with savings of €9,600 on borrower’s insurance Profile 1 Nb of additional m2 with savings of €18,400 on borrower’s insurance Profile 2 Nb of additional m2 with €32,800 savings on loan insurance Profil 3 Saint-Étienne €1,359 7.06 m2 13.54 m2 24.13 m2 Le Havre €2,012 4.77 m2 9.14 m2 16.30 m2 Nîmes €2,357 4 .07 m2 7.80 m2 13.91 m2 Dijon €2,742 3.50 m2 6.71 m2 11.96 m2 Reims €2,639 3.63 m2 6.97 m2 12.42 m2 Grenoble €2,978 3.22 m2 6.17 m2 11.01 m2 Toulon €3,182 3.01 m2 5.78 m2 10.30 m2 Angers €3,273 2.93 m2 5.62 m2 10.02 m2 Lille €3,613 2.65 m2 5 .09 m2 9.08 m2 Montpellier €3,449 2.78 m2 5.33m2 9.51 m2 Toulouse €3,637 2.64 m2 5.06 m2 9.02 m2 Marseille €3,716 2.58 m2 4.95 m2 8.82 m2 Nantes €4,028 2.38 m2 4.56 m2 8.14 m2 Villeurbanne €4,116 2.33 m2 4.47 m2 7.96 m2 Strasbourg €3,966 2.42 m2 4.64 m2 8, 27 m2 Rennes €4,036 2.37 m2 4.55 m2 8.12 m2 Bordeaux €4,742 2.02 m2 3.88 m2 6.91 m2 Nice €5,071 1.89 m2 3.62 m2 6.46 m2 Lyon €5,099 1.88 m2 3.61 m2 6.43 m2 Paris €10,082 0.95 m2 1.82 m2 3.25 m2 The savings calculated are the maximum potential savings if the change of insurance occurs within the month signing the loan offer. *BestAgents estimated prices as of May 1, 2023 (net seller price) Get your loan and gain square meters thanks to the insurance delegation! The state of the real estate market in May 2023 The fall in real estate prices continues. Started at the beginning of 2023, it concerns a dozen cities in April. Only 6 cities have seen their prices increase (Nice, Lille, Le Havre, Angers, Villeurbanne and Paris), but the increase is low, a few euros per square meter, except in Lille where the m2 gains more than €100 compared to the month previous. In Dijon and Nîmes, the values ​​have not changed from one month to another. This confirms the slowdown in activity that began in the summer of 2022. The production of real estate loans fell by 40% in May 2023 in connection with the difficulties in accessing bank loans (rise in borrowing rates, standards for granting and wear). The outlook for the 2023 real estate market suggests a deterioration in the situation, but there are solutions to stay below the attrition rate in 2023. It should be noted, however, that the prices of old real estate do not fall more quickly despite the conditions of borrowing complicated, because there is a good balance between the price and the quality of the goods to be sold. Since our last real estate purchasing power barometer of March 2023, the borrower insurance rates for the profiles concerned have not changed, except for profile 2 where the rate lost 1 point (0.11% against 0.12 %). Check out our tips for lowering the cost of home loan insurance. The gain generated by the change in borrower insurance is significant enough in the majority of cities to fully justify the approach. Not only does the delegation of home loan insurance make it possible to acquire more square meters, but it remains the key to obtaining your home loan in 2023. Let’s put an end to one of the misconceptions about borrower insurance, that which consists to think that you are obliged to subscribe to the insurance of the bank. You have the choice of the contract and this opportunity allows you to preserve your purchasing power in the midst of inflation thanks to the savings made by delegating the borrower’s insurance or by changing the formula during the loan. How many more square meters by changing insurance in May 2023? The potential gain remains anecdotal in Paris due to the high cost of real estate. Elsewhere, where the cost per square meter is between 2 and 8 times less expensive, you can finance between 1.88 m2 (Lyon) and 7 m2 (Saint-Etienne) additionally by opting for an individual contract with an alternative insurer ( profile 1). Thanks to the economy on insurance, you can acquire the necessary surface for a room intended to accommodate a toilet, or even a bathroom. With a gain of €9,600 thanks to borrower insurance, why not aim for an apartment with a balcony or terrace? In our second example, not only do you obtain your loan but you can buy between 1.82 m2 (Paris) and 13.54 m2 (Saint-Étienne) additionally, 9 m2 being the average surface of a standard room and 12 m2 that of of a kitchen. As for profile 3, given the high amount borrowed (€32,800 with a 50% quota on each head), the savings generated by the delegation of insurance are substantial, beyond the fact that it is the solution to obtain financing. It allows the passage to gain up to 24m2 (Saint-Étienne), or the surface of a studio. Long live the Lemoine law! The gain that you can make thanks to the delegation of insurance is all the higher as the sum borrowed is important, the cost of mortgage loan insurance being calculated on the capital borrowed. If you have subscribed to the bank’s borrower insurance, you can change it at any time with the new regulations in place since June 1, 2022. The Lemoine law allows you to terminate your insurance contract at any time upon signature of the loan offer, without waiting for any due date, and to replace it with an alternative offer with equivalent guarantees. For cheaper loan insurance in 2023, compete. Do not wait ! The sooner you change, the bigger the savings. Follow our advice for changing mortgage loan insurance in 2023.