Mortgage loan: I lost 14 square meters of purchasing power in six months

Mortgage loan: I lost 14 square meters of purchasing power in six months

A study by Meilleurtaux showed that between the increase in mortgage rates and the rise in property prices, borrowers have seen the purchasing power of real estate decline in the 20 largest cities in France.

– 14 m2 equivalent to a beautiful bedroom. This is what I lost Between December 2021 and June 2022a borrower who wants to buy property in Saint-Tiens, according to a study by Meilleurtaux.

By simulating the situation of a buyer earning approximately €3,000 net per month and thus benefiting from the €1,000 monthly repayment capacity, the broker estimates that the buyer can claim a mortgage of €1. 209,222 euros over 20 years at 1.40%.

Reduced in almost all cities

With this budget, what can this borrower demand? And on top of all that, how much purchasing power have you lost since December 2021, when prices started rising rapidly? The answer varies according to the different cities that the study took into account, even if rate increases affect all borrowers.

with higher rates, Borrowing capacity is automatically lower. With the same monthly payment, living space is reduced, confirms Mal Bernier, a Meilleurtaux spokesperson. However, it is Saint Tian City where borrowers lose the most. Because the price per square meter rose from 1,539 euros in June, compared to 1,492 euros in December. With all these parameters, the purchasing power of real estate decreased by 14 square meters in six months in the city.

The situation is no better in Le Mans. Sarthe province witnessed an increase in the price per square meter from 1930 euros to 2009 euros. With 209,222 euros, our buyer can afford the costs With an area of ​​104 m 2 compared to 116 m 2 in December. As for the disappearance of a room of 12 m 2 in the housing. Le Havre completes this podium, with a loss of 10m2, thus moving from a dwelling of 99m2 to 89m of living space.

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These cities have certainly attracted metropolitan residents who need extra room and green space since the various agglomerations, but they were also among the mid-sized cities offering the lowest prices, so they are Catching up fairly normal Which explains why they’re the biggest losers, notes Mal Bernier again.

And the situation in Paris proves him right. Already expensive, the capital has not seen their prices rise. On the contrary, the price per square meter has gone From 11,496 euros in December to 11,260 euros in June. Thanks to this drop in prices and despite the rise in interest rates, Parisian borrowers have not lost the purchasing power of real estate.

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