Credit rates still falling in March, good news for first-time buyers

As spring looms on the horizon, the clearing is confirmed on the mortgage market. With rates continuing their downward trend and banks engaged in fierce competition to attract new customers, it is time to negotiate good loan conditions, taking advantage of the improvement in borrowing capacity.

According to Pretto data, the average rates observed in March are as follows:

• 2,89% over 15 years
• 2,95% over 20 years
• 3,03% over 25 years

Rates March 2025:

Concretely: Olivier earns €2.700 per month. In December 2023, he could hope for a rate of 4,47%, or a borrowing capacity of €170.537*. Today, with a rate of 3,10%, he can borrow €197.000. A gain of more than €26.000. This represents +7m² in Marseille, +13m² in Saint-Étienne.

*without contribution, excluding insurance.

Proactive banks in search of new customers

Banking offers are becoming more and more competitive, such as the 2,99% rate from a national bank (over terms of 11 to 20 years and up to 500.000 euros). It is a safe bet that others will align themselves so as not to lose customers.

For their part, mutual banks are trying to attract first-time buyers with PTZ bonuses or enhanced lines (1,99% over the same period as the main line). Healthy competition that particularly benefits young people with potential or CSP+.

To retain their customers, traditional banks also offer discounts. Finally, property purchase projects with a good DPE benefit from attractive offers such as additional lines with rates between 1% and 2%.

Another sign of a new dynamic in the credit market: the return of 110% loans covering the purchase of the property and additional costs. Still marginal and mainly offered to borrowers with good incomes and solid savings, they nevertheless confirm the easing of borrowing conditions.

The implementation of the expanded PTZ from April 1st should also provide some breathing space and improve the borrowing capacity of first-time buyers. Finally, with the drop in rates, we are already seeing a return to loan renegotiations. They are interesting from a difference of 0,7 points for loans over 250.000 euros and 1 point if the amount borrowed is lower. Great savings for those who signed a loan offer when rates were at their highest.

Illustration :

Valentine and Marius bought their house in Annecy for €300.000 with a 25-year loan at 4,40%. Today, a renegotiation at 3,79% would give them double good news: a reduced monthly payment of €100 (€1680 → €1580) and a saving of €28.653 on interest.

For Pierre Chapon, president of Pretto: "We are seeing a real easing in the credit market, with the return of more favorable conditions such as 110% loans or improved offers for young buyers. These dynamics bode well for those with a real estate project, particularly first-time buyers, with positive consequences for the recovery of the real estate market."

Illustrative image of the article via Depositphotos.com.