Home loan: average down payment rises sharply.

The average personal contribution in the real estate market over one year (from 2022 to 2023) has increased significantly, varying by region. The average national contribution is now around €72,000, an average increase of €10,000 per transaction. The crisis that has slowed the real estate sector in France does not portend an imminent outcome. The cost of housing, which has become unsustainable - although there has been a slight downturn in recent weeks, especially in some regions of the country - and the very high interest rate on loans are all negative factors affecting the recovery of this key sector negatively. But that's not all. The sharp rise in personal contributions in recent months is also not helping''attracting potential new buyers who are already quite discouraged by the price and the impact of credit growth.

The average contribution is now €72,000. In Paris, the figure is four times higher. This is according to the latest data from broker Finance Conseil, exposed by BFM Business. "According to data from broker Finance Conseil, to qualify for a €300,000 loan, a family now needs to earn around €5,300 a month, €1,000 more than a year ago," the media outlet reported. And in order to qualify for the loan, sufficient guarantees must be provided to demonstrate the ability to fulfill the terms of the deal, including timely repayment of the loan at the agreed interest rate.

Average contribution: significant differences between regions. Having passed the €72,000 mark, the average contribution level has increased by €10,000 compared to 2022. This increase is not solely due to the requirements of partner banks. In fact, if the interest rate is at the current level, it is an indication that deals are being registered and they also require the consent of lenders. Some observers see this as buyers wanting to increase their personal installments to reduce the overall loan amount.

But since this effort by the buyer is motivated only by a desire to reduce the costs associated with a sufficiently high interest rate on the loan, many others do not see this as a true desire because the bank remains''the main rule-setting partner. The rules, however, vary from one region to another.

The highest average contribution is recorded in the Ile-de-France region with an amount of €272,000. Next comes Auvergne-Rhône-Alpes, where the average contribution exceeds €90,000. In Brittany, it is around €85,000. It is worth noting that the largest increases, from 2022 to 2023, were registered in the Eau-de-France region, where the average amount is around €45,000.