Comparing a 3.67% fixed mortgage quote in France

[hugo.linden]

I’m comparing mortgage offers for a property purchase around €243,800 in Paris. One quote is 3.67% fixed for 20 years. Its advertised rate initially looked lower, but the arrangement fee and loan-to-value tier make it less straightforward; another option has a painful fee but much better overpayment terms.

For recent financing in France, what did you compare: APR, interest over the expected holding period, or total cash cost including fees? I’m also looking at monthly affordability, portability and early-repayment terms rather than assuming I will keep the same loan for all 20 years.

 

[daily_cedar]

I’d compare total cash outlay over the period you realistically expect to keep the mortgage, while using APR as a consistency check. A full 20-year comparison can favour the lower rate even if you may sell or refinance much earlier; equally, assuming an easy refinance could understate future rate risk.

How large is the fee difference, and does either offer require a different loan-to-value tier? Those two figures could outweigh a modest rate gap. I’d also ask each lender for matching repayment illustrations at the same loan amount and term, including the cost of your likely overpayments and an early exit.