The popularity of the mortgage is confirmed as rates beat historic levels. Homes are thus on the alert in order to succeed in their homeownership project.
Inevitably, low rates play a key role in the demand for credit which is in an ascending phase. By looking more closely at the figures published by the Good Finance, the French have been rushing since the start of the year on financing to facilitate the purchase of housing.
Sustained growth in outstanding loans in recent months
Last July, outstanding mortgage loans increased by 6.5% over one year, a persevering dynamic vis-à-vis the previous months which shows an attraction for investment in stone. In total, French borrowers amortize a home loan outstanding valued at more than 1,049 billion dollars.
It must be said that the context is remarkable with an average rate of 1.17% overall durations in August. For the French who are about to become a homeowner, this is a boon which allows them to borrow with a much lower cost of credit than before. It is therefore not surprising to see the curve of their real estate purchasing power rise by 36% since 2008.
With this gain, either the borrowers become owners at a lower cost, or they can decide to inject this news margin to acquire a larger living space or a higher quality property. Low rates are therefore an opportunity to be able to revise upward ambitions for a new real estate project to finance.
The best real estate rates, but for whom?
Also, the context is also favorable for a majority of households, whatever the type of project. It actually benefits first-time buyers, those people who aspire to buy for the first time, borrowing with or without contributions sometimes, or investors who seek rental income and all others able to be financed.
One of the conditions for surfing the wave of low rates remains to display a good borrowing profile. If the banks open the floodgates and soften their allocation criteria, in particular on an extension of the repayment period, they still make sure to formulate the best offers of housing credit towards quality profiles.
However, households will benefit from a mortgage rate much lower than the indicators seen in the past since the final proposals cannot exceed the thresholds for usury rates. Updated every quarter by the Good Finance, these rates, which are currently the lowest, are neither more nor less than the highest APRs (nominal rate, borrower insurance, and various fees) that a bank can offer to clients who wish to finance real estate.