Oh my low rate! The rates of mortgage have never been so low, but not everyone benefits. Starting with the minimum wage. For them, it is the triple penalty: real estate prices increase, banks are more demanding – at least 10% contribution, a debt ratio not exceeding 33% – and especially the drop in wear rates complicates the situation. This safeguard intended to protect borrowers backfires against those who do not benefit from the lowest rates. And it is not the increase in the minimum wage of 54 euros net in 2 years that changes the situation.
With soaring prices in many medium-sized cities, the purchasing power of real estate has fallen in most of the 20 municipalities scrutinized by Vousfinancer, mortgage broker. This is the case in Angers (-14%!), Strasbourg (-5.9%) or even Rennes (-5.6%). Three attractive cities where prices have soared over the past 2 years: + 28% (!), + 17% and + 16% respectively. Three cities where the minimum wage earners will have to be content with a more or less large studio, between 27 and 35 m² (with 10% contribution excluding insurance and a credit at 1.25% over 20 years). “They risk being excluded from home ownership in these cities that were still affordable a few years ago, as was the case in Paris, Lyon or Bordeaux», Analyzes Sandrine Allonier, research director of Vousfinancer.
A contribution of … 150,000 euros!
For the rest, rare are the municipalities where an employee receiving the minimum wage (1,589.47 euros gross per month) can afford more than 50 m² (which is equivalent to the average surface area of housing in France). It is in Saint-Étienne, the cheapest city in Vousfinancer’s ranking (1190 euros / m²), that a borrower earning the minimum wage can hope to buy the largest home: nearly 90 m². Le Mans comes in second position (69 m²). Le Havre and Nîmes follow with accommodation of around fifty m². For all the others, it will be 45 m² at best (in Dijon). And at worst: a small room of 10 m² in Paris. With Bordeaux (+ 7.2%), the capital is the city where the purchasing power of minimum wage earners has increased the most in 2 years (+ 6.5%). A very meager consolation prize. Because they only gained 0.7 m² …
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These results can give hope to low-income people. But the reality is often harsher once they face their banker. Especially since raising 10% contribution is far from being won for them. Unless you have a generous and even very generous family. This is the case of a single, 26-year-old sports leader, on a permanent contract for a year and earning 1,542 euros per month. To hope to obtain a loan for the purchase of a 48 m² at 255,000 euros, this inhabitant of Essonne (91) has a contribution of … 150,000 euros, part of which in the form of a family donation. That is nearly 59% of the total cost of the operation. “The bank made him an offer of a loan of 105,000 euros, at 1.37% over 25 years (i.e. 415 euros to be reimbursed per month). It should do it, especially since its debt is 27%!», Explains the agency Vousfinancer Orsay.
Another, less exceptional case: a 37-year-old first-time buyer, single without children, in a shared apartment. Earning 1,480 euros per month, this medical assistance was able to buy a 45 m² in the Val d’Oise thanks to a loan of 105,000 euros over 25 years, at 1.7%. Its low debt (30%) and a contribution of 11% worked in its favor.