Local taxation weighs on the monthly repayments of your mortgage.
In most French cities, local taxes increase the borrowing rate by around 1%.
When subscribing to your mortgage, it is important to take into account the weight of local taxes in the repayment of your monthly payments. Remember that the government finally deferred the exemption of the housing tax. Local taxation – property tax and housing tax – therefore retains its importance.
The weight of local taxation
The local taxation thus represents approximately 173 euros extra each month. It is obviously not identical throughout the territory. It is the largest in Montpellier and Bordeaux, where it amounts to more than 200 euros per month. In Marseille, it is 199 euros per month and 190 euros in Nantes and Toulouse. Paradoxically, the local taxation in Paris is softer than in the Province.
In conclusion, to best manage your budget, do not forget to include the share of local taxes in your monthly repayments. This item is not taken into account by the banks when granting your mortgage.