If the average mortgage rates offered by banks are down, the refusals of files are on the rise. The analysis of the credit broker CAFPI.
A good end of the year for mortgage rates but …
For this end of the year, rates remain stable, even slightly lower to very low levels and allow borrowers, subject to having a contribution, to continue their real estate projects. In November CAFPI negotiated slightly lower rates for its clients than in October, with 0.67% over 10 years, 0.86% over 15 years, 1.00% over 20 years and 1.18% over 25 years . For the last month of the year, the average rates offered by the banks are also down for the best profiles with 0.70% over 20 years. ” Even if they are slightly higher than last year, the rates remain very attractive for this end of the year. The exit from this second confinement and the resumption of transactions will be facilitated by these very low interest rate levels. », Comments Philippe Taboret, Deputy CEO of CAFPI.
… a drop in mortgage production is to be expected
The volumes of housing loans in 2020 are excellent despite two periods of confinement which greatly slowed the completion of new projects and the completion of current projects. The rebounds observed during deconfinements have almost caught up with the loss of activity accumulated during these periods. However, the new demand suffered from the restriction of access to credit imposed by the HCSF and amplified by the economic risks arising from the health crisis: ” While the HCSF measures were applied by the banks in a more or less rigorous way during the first part of the year. The increase in economic and banking risks due to the health crisis, such as the increase in layoffs or bankruptcy filings, has pushed banks to tighten their credit granting conditions by strictly respecting the recommendations of the HCSF and the limit. 15% overrun right », Notes Philippe Taboret. This increase in the loan refusal rate, especially in recent months, has been observed by the entire real estate profession. ” These files not accepted by banks today will impact the volume of home loans for the first half of 2021 *. We must be aware of this phenomenon today and relax the conditions for access to credit, otherwise the economic recovery hoped for in 2021 will be impossible. », He adds.
The attraction for stone, it still remains intact
The crises – health, economic and social – that we are going through have reinforced the French love of stone. Demand remains strong: “ At each release from confinement, customers rush to carry out their real estate project. Beyond the primary need for housing or the desire to improve their place of life after confinement, the stone provides the security that the French need in these uncertain times. », Specifies Philippe Taboret.
But access to credit is more difficult, it will be necessary in the coming months to ensure to be supported in the search for its financing. In fact, each bank favors certain profiles of buyers and mortgage brokers are fully aware of these criteria requested by the banks with which they work and are able to offer the right file to the bank which will issue the “pass” for the loan. property purchase ; credit.
* For an existing property, the completion period is 3 to 5 months between the promise to sell and the conclusion of the sale with the Notary, while for a new property in off-plan sales, the period between the reservation contract and the delivery of the keys is on average between 12 and 24 months.
