- Details
-
Published on
by the Meilleurtaux editorial team
Faced with the continuous and rapid rise in interest rates which weighs on the real estate market, the government is considering easing the criteria for obtaining a mortgage. At the same time, the National Real Estate Federation (FNAIM) submitted a proposal to the Executive aimed at generalizing the portability and transferability of housing loans.
What rate for your project?
The Benefits of Loan Portability to Support Home Borrowers
In order to simplify household access to real estate loan and boost production at half mast, the FNAIM issued several recommendations to the Minister Delegate for Cities and Housing, Olivier Klein.
ImportantOne of them concerns housing loan portabilitywhich consists of keeping the same financing contract with the bank when an owner sells a property with a view to immediately buying another.
Thanks to portability, the borrower would benefit from the initial conditions of his loan for his new acquisition.
Consequently, the same advantageous rate would remain applicableas well as all other terms, for future monthly repayments.
Moreover, they would avoid a loan insurance changeas well as various additional costs:
- indemnities for early repayment of the old loan,
- the implementation of new guarantees,
- additional filing fees.
ImportantCredit transferability is another option. The principle is to “link” the contract to a specific property.
In the event of an early resale, the buyer can take over the financing contract and take advantage of the conditions that the bank has granted to the seller.
What rate for your project?
A clause to be inserted urgently in future loan offers for the FNAIM
According to the FNAIM,
Putting these devices in place would simply require theinclusion of a clause authorizing transferability or portability of the loan in future credit offers.
The said clause would be valid for ten years. Through these solutions, it seeks to:
Preventing a breach of a loan before term and the additional costs it would generate for the subscriber.
The Federation emphasizes
The urgency of this measure, in order toavoid aggravating the consequences of such additional costs on purchasing power already weakened by the French, both sellers and buyers.
Because despite a slowdown in the increase in rates, professionals expect rates to remain at high levels in the coming months.
It is still necessary to convince the banks, reluctant to offer the devices to their customers, whose system penalizes them. Indeed, if the refinancing costs them more after a few months or a few years, they risk significant losses.
- Faced with the rapid rise in interest rates, the FNAIM is proposing to generalize the portability and transferability of home loans to support borrowers.
- Portability would allow owners to keep the initial conditions of their loan when they sell one property to buy another, while portability would tie the loan contract to a specific property so that the buyer benefits from the attractive terms granted to the seller.
- These devices would avoid additional costs for borrowers and allow them to benefit from advantageous loan conditions in the event of the sale/repurchase of a property.
- The FNAIM stresses the importance ofinclude a clause authorizing these practices in future loan agreements within a 10-year limit.
2023-05-19 17:05:45
#Portability #transferability #solutions #difficulties #access #real #estate #credit #Bestrates.com
