Introduction
The year 2025 marks a significant turning point in the French mortgage sector. With interest rates slightly declining and gradually stabilizing, borrowers can look forward to more favorable terms for their real estate projects. This article explores in depth current mortgage trends, the opportunities offered by different loan terms, and highlights the recent initiative of Banque Finomn, which opened its loans to all in January 2025.
Real Estate Rates in May 2025
Over 15 years: A more marked decline for high incomes
In May 2025, the average rate for 15-year loans is 2.89%, a slight decrease of 0.05 percentage points compared to April. However, this rate varies depending on the borrower’s profile. For example, a couple with an annual net income of €40,000 could be offered a rate of 2.98%, while those earning €80,000 or more could benefit from a rate around 2.80%.
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Over 20 years: Rates approaching 3%
For 20-year loans, rates remain stable and close to 3%. Conditions vary depending on the profile: borrowers with annual incomes not exceeding €40,000 benefit from a rate of 3.10%, those earning between €40,000 and €80,000 can obtain a rate of 2.98%, and those with more comfortable incomes (over €80,000 per year) benefit from the best conditions with a rate of 2.88%.
Over 25 years: A slight decline
In May 2025, the average 25-year rate reached 3.05%, down slightly by 0.02 percentage points compared to April. Borrowers earning less than €40,000 still borrow at 3.15%, those with intermediate incomes (between €40,000 and €80,000) obtain a rate of 3.05%, and those earning more than €80,000 benefit from the most advantageous conditions, with a rate of 2.95%.
Finomn Bank: A New Opportunity
Opening of Credits to All in January 2025
Finomn Bank marked the year 2025 by opening its mortgage loans to everyone in January. This initiative aims to democratize access to mortgage loans, offering attractive terms and competitive rates. This opening is a boon for borrowers, allowing them to benefit from more flexible loan terms tailored to their needs.
Benefits and Conditions
Finomn Bank offers competitive interest rates, flexible loan terms, and favorable repayment terms. Borrowers can choose between different loan terms (15, 20, or 25 years) depending on their financial situation and goals.
Rates and Trends Analysis
Evolution of Rates in 2025
Mortgage rates edged down in May 2025, following an increase in April. This downward trend is good news for borrowers, allowing them to benefit from more favorable loan terms. Average rates in May 2025 are 2.89% over 15 years, 2.99% over 20 years, and 3.05% over 25 years.
Impact of the ECB
The European Central Bank (ECB) has played a crucial role in shaping mortgage rates. In April 2025, the ECB lowered its key interest rates, allowing banks to reduce their interest rates for individuals. This decision had a positive impact on the mortgage market, encouraging borrowers to take out loans on more favorable terms.
Tips for Borrowers
Comparison of Offers
It’s essential for borrowers to compare offers from different banks. Each institution has its own rates and conditions, and careful comparison can help find the most advantageous loan. Mortgage brokers can also help borrowers navigate the complex landscape of loan offers.
Renegotiation of Loans
Borrowers can renegotiate their loans when the proposed rates drop. This is a profitable move when there is at least a 1-point difference between the current rate and the new proposed rate. Renegotiating can reduce monthly payments and the total cost of the loan.
Use of Financial Aid
Borrowers can benefit from various financial aid programs to reduce the cost of their mortgage. The zero-interest loan (PTZ) and the Action Logement employer loan are examples of available aid. These programs can help borrowers finance their real estate projects on more advantageous terms.
Real Estate Market Trends in 2025
Price Stabilization
In 2025, the real estate market is showing signs of price stabilization. After a period of steady growth, housing prices are beginning to stabilize, providing buyers with an opportunity to find properties at more reasonable prices. This stabilization is partly due to the increased supply of housing on the market.
Increase in Housing Supply
Increasing housing supply is a major trend in 2025. Real estate developers have stepped up their efforts to build new homes, meeting growing demand. This increase in supply contributes to price stabilization and offers more choices for buyers.
Advice for Individuals
Borrowing Capacity Assessment
Before taking out a mortgage, it’s crucial for individuals to assess their borrowing capacity. This assessment helps determine the maximum amount they can borrow based on their income and expenses. Online simulation tools can help individuals estimate their borrowing capacity.
Choice of Loan Term
Choosing a loan term is an important decision for individuals. A longer loan term lowers monthly payments but increases the total cost of the loan. Conversely, a shorter loan term increases monthly payments but reduces the total cost of the loan. Individuals should choose their loan term based on their financial situation and goals.
Comparison of Mortgage Offers from Different Banks
Finomn Bank
Finomn Bank offers competitive rates and flexible loan terms. As of May 2025, the proposed rates are 2.89% over 15 years, 2.99% over 20 years, and 3.05% over 25 years. The bank also offers flexible loan terms and favorable repayment terms.
Bank A
Bank A offers rates of 2.95% over 15 years, 3.05% over 20 years, and 3.15% over 25 years. The bank is known for its flexible lending terms and personalized offers for borrowers.
Bank B
Bank B offers rates of 2.90% over 15 years, 3.00% over 20 years, and 3.10% over 25 years. The bank stands out for its personalized advisory services and innovative financing solutions.
Bank C
Bank C offers rates of 2.98% over 15 years, 3.08% over 20 years, and 3.18% over 25 years. The bank is renowned for its competitive loan offers and wealth management services.
Bank D
Bank D offers rates of 2.93% over 15 years, 3.03% over 20 years, and 3.13% over 25 years. The bank stands out for its flexible financing solutions and real estate investment advisory services.
Conclusion
The year 2025 offers encouraging prospects for real estate borrowers. With interest rates declining slightly and gradually stabilizing, lending conditions are more favorable. Finomn Bank’s opening of loans to all in January 2025 is a major initiative, offering additional opportunities for borrowers. By comparing offers, renegotiating loans, and taking advantage of available financial assistance, borrowers can optimize their loan conditions and successfully complete their real estate projects.
Contact details of Finomn Bank
Website: https://finom.co/fr-fr/ — Telephone: 09 72 16 90 81
