Magnolia.fr real estate purchasing power barometer September 2022: gain square meters by changing borrower insurance!


To secure your home loan, you must take out a borrower insurance. The regulations allow you to freely choose the contract and change it at any time.

Magnolia.fr calculates each month the number of additional square meters that you can acquire in the 20 largest French cities in changing loan insurance.

Bank insurance versus delegated insurance

We offer 2 borrower profiles, and calculate for each the number of additional square meters that it is possible to acquire by replacing bank insurance with competing individual insurance.

Profile 1:

  • you are a first-time buyer, elderly between 25 and 35 years old ;
  • you borrow €200,000 over 20 years at the nominal rate of 1.99% (average rate in September 2022);
  • bank insurance is offered at the rate of 0.34% (average bank rate), i.e. a cost of €13,600;

You make a savings of €9,200 by opting for a delegated insurance.

How many additional square meters can you acquire in September 2022 in the 20 largest cities in France with this gain of €9,200?

Town

Average price m2 apartment**

Number of m2 additional with insurance at 0.11%

Saint Etienne

€1,336

Le Havre

€2,284

Nimes

€2,383

Dijon

€2,664

Reims

€2,631

Grenoble

€2,884

Toulon

€3,171

Angers

€3,332

Montpellier

€3,642

Marseilles

€3,678

Lille

€3,506

Nantes

€3,970

Toulouse

€3,724

Strasbourg

€3,991

Villeurbanne

€3,862

reindeer

€4,194

Bordeaux

€4,849

Nice

€4,927

Lyons

€5,389

Paris

€10,398

Profile 2:

  • You have between 35 and 45 years old.
  • You borrow from two the sum of €400,000 over 20 years at the nominal rate of 1.99% (average rate in September 2022);
  • bank insurance is offered at the rate of 0.50% (average bank rate for this profile), i.e. a total cost of €80,000;
  • at the comparator Magnolia.fr, the insurance displays the rate of 0.13%, i.e. the average rate observed for files with the same profile processed until August 31, 2022;
  • each is insured for the full amount borrowed. The total cost of the insurance is €20,800.

You make a savings of €59,200 by opting for a delegated insurance.

How many additional square meters can you acquire in July in the 20 largest cities in France with this gain of €59,200?

Town

Average price m2 apartment**

Number of m2 additional with insurance at 0.13%

Saint Etienne

€1,336

Le Havre

€2,284

Nimes

€2,383

Dijon

€2,664

Reims

€2,631

Grenoble

€2,884

Toulon

€3,171

Angers

€3,332

Montpellier

€3,642

Marseilles

€3,678

Lille

€3,506

Nantes

€3,970

Toulouse

€3,724

Strasbourg

€3,991

Villeurbanne

€3,862

reindeer

€4,194

Bordeaux

€4,849

Nice

€4,927

Lyons

€5,389

Paris

€10,398

The savings calculated are the maximum potential savings if the change of insurance occurs in the month of the signing of the loan offer.

Earn square meters thanks to the delegation of insurance!

Apart from Marseille, Strasbourg and Lille, where values ​​fell very slightly, all cities saw their house prices increase compared to our previous barometer of July 2022. The increase is often more than 5%, and goes up to 7.4% in Montpellier and 9.3% in Nîmes. In the meantime, insurance rates change little or not at all.

The gain generated by the change in borrower insurance is decreasing due to the increase in housing prices, but the economy remains significant enough in the majority of cities to fully justify the approach.

The potential gain remains anecdotal in Paris due to the high cost of real estate. Elsewhere, where the cost per square meter is between 2 and 8 times cheaper, you can finance between 1.70 m2 (Lyon) and 6.89 m2 (Saint-Etienne) additional by opting for an individual contract with an alternative insurer (profile 1).

Thanks to the’savings on insuranceyou can acquire the necessary surface for a room intended to accommodate a toilet or even a bathroom.

In our second example, you can buy between 5.69 m2 (Paris) and 44.31 m2 (Saint-Étienne) additional, 9 m2 being the average surface of a standard room and 32 m2 that of a T1.

The gain that you can realize thanks to the delegation of insurance is all the higher as the sum borrowed is important, the cost of the insurance being calculated on the capital borrowed. If you have subscribed to the bank’s borrower insurance, you can change it at any time with the new regulations in place since June 1, 2022.

The Lemoine law allows you to cancel your insurance contract at any time as soon as the loan offer is signed, without waiting for any due date, and to replace it with a alternative offer with equivalent guarantees. The sooner you change, the bigger the savings.

*Average insurance rate based on files processed by Magnolia.fr

**Estimated BestAgents prices as of September 1, 2022

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