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Real estate credit : the faucet is wide open

The banks are engaged in a fierce war to keep their customers, and the rates for mortgages have never been cheaper. barely three weeks of waiting and the verdi

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Real estate credit : the faucet is wide open

The banks are engaged in a fierce war to keep their customers, and the rates for mortgages have never been cheaper.

barely three weeks of waiting and the verdict is in : this will be a great yes bank. This couple of quadras parisians did not wait long to dig up a loan of 400 000 euros over twenty years... At the incredible rate of 0.9 % !

Their case had, however, nothing exceptional. Together, they add up to 4 500 € net of income each month. But their bank had no intention of letting them go to the competition. Then she conceded a few percentage points on the rate offer official, and the negotiation has not even taken place. "Cases like this one, we see that spending tens since the beginning of the year," confirms Maël Bernier, the director of studies of Meilleurtaux.com. Never borrowing conditions were not as favourable. Better yet in 2016, when they had reached a low point in history.

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borrowing rates at historically low levels

"there are still three months for a credit for a term of twenty years, it was necessary to count with a rate of 1.1 %. Today, a lot of records go below 1 %, " confirms the director of an agency of a large national network. In fact, the cost of credit has been divided by 5 in the space of ten years, and by 2 in just five years. Result : the borrowing capacity of the French has jumped 40 % in a decade, according to the calculations of Meilleurtaux.com. "And yet, the conditions posted in the agencies do not take into account the dividends that a good customer can get if he undertakes to domicile the payment of his salary and all his savings accounts in the bank," comments Philippe Taboret, the director of Cafpi.

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The Express

>> Practice : Find the best offers loan insurance in partnership with MeilleurTaux.com

For lending institutions, real estate remains the best tool to build a captive market, and they engage in a fierce war. However, this situation interest-rate novel might well last. Against all expectations, yields of government bonds to ten years - the reference to the fixing of the rate of real estate lending - fell this winter. And this despite a social climate which is harmful and the degradation of the public accounts after the extension of $ 10 billion of spending outlined at the beginning of the crisis in the yellow vests. Above all, Mario Draghi, the president of the european central Bank announced a few days ago that its zero interest rate policy would continue to be incurred until at least the end of 2019. In other words, the faucet of the credit should remain widely open.

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The Express

Borrow out of twenty-five years of age, soon be the norm !

Results : the records of loan application is activated (+ 10 % in the first three months of the year, according to the data of Cafpi), and the durations become longer : 60% of new loans were signed for twenty-five years or more... from just under half two years. Some establishments even see further. Since the fall, the Credit foncier and communal d'alsace and Lorraine offers loans to thirty-five years !

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how far can go this madness ? The High Council for financial stability (HCSF), a sort of policeman of the banks, which met recently at Bercy, has sounded the alarm, calling for a return to calm. Stung to the quick, the bankers swear hand on heart that they are not crazy, carefully selecting the folders and avoiding any risk of over-indebtedness. The real estate professionals, themselves, are formal : it is this "bubble" on the borrowing rates which has allowed the real estate market not to land with too much force.

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