How to put all the chances on his side for his mortgage application?

The Financing Center notes a decrease of around 30% in loan demand between August and September 2021 (depending on the region), despite particularly low rates over the entire period. While a recovery in the mortgage market was expected by the players in the sector at the start of the September 2021 school year, it was not in the end as important as expected ...

This limited recovery can be explained in particular by the anxiety-provoking context generated by the health crisis, as well as by the maintenance of measures restricting access to loans, put in place by the High Council for Financial Stability (35% debt maximum, maximum loan term of 25 years for old and 27 years for new).

However, rates remain at a historically low level. For La Centrale de Financement, it is therefore always time to invest in real estate! This period is all the more favorable as households will have the opportunity to benefit from increased benevolence and listening from banks, not having been able to achieve their objectives.

In this context, the broker delivers his advice on borrowing with all the odds in his favor!

How to contract a loan under the best conditions?

To ensure the success of its real estate acquisition project, La Centrale de Financement recommends:

1 - Be accompanied by a mortgage professional

Using a mortgage broker has many advantages for buyers. This supports the borrower from the design of his purchase plan to the actual acquisition of the property, by ensuring the best borrowing conditions, both in terms of credit rates and in terms of insurance on the property. ready.

In a particularly tight mortgage market, characterized by increased vigilance on the part of banks, the broker examines loan applications taking into account all of their characteristics: he ensures the borrowing capacity of purchasing households (35 % maximum debt on monthly net income) and the maintenance of a sufficient remainder to live allowing them to meet their needs.

“Since the start of the health crisis, banks have become more vigilant. They need to ensure the creditworthiness of borrowers and ensure their seriousness in financial management. In particular, they pay a lot of attention to the management of the current account and any savings. " notes Sylvain Lefèvre, president of the Centrale de Financement.

2 - Provide 10% minimum contribution

During the health crisis, the average contribution percentage requested by banks increased sharply and became an essential criterion for the success of its real estate investment: between 2020 and 2021, it increased by 3,5, 10,4%, from 13,9% to XNUMX% of the overall average loan amount^[1]. This setting applied to the majority of borrower profiles. It has become essential for first-time buyers who have resorted more and more to financial support from their ancestors.

“Since the start of the crisis, we have seen a significant increase in the number of donations in the context of loan requests made by first-time buyers. An evolution which can in particular be correlated with the low level of remuneration of savings, having probably encouraged part of the ascendants to find another use for it or to pass on part of their inheritance earlier. " explains Sylvain Lefèvre.

In some exceptional cases, the loan could be granted without contribution. This has indeed been true for certain profiles meeting very strict criteria: employees on permanent contracts working in sectors little or not affected by the crisis and benefiting from an annual income higher than the average income of a first-time buyer ( or 41.447 €^[2]).

3 - Pay particular attention to the delays in obtaining credit

As part of the sales agreement, it is necessary to pay attention to the delay in obtaining credit, especially in tight areas where banks are subject to many loan requests. The Centrale de Financement advises, in this context, to negotiate a period of approximately 70 to 75 days with the seller rather than sticking to the minimum 60 days, in order to allow sufficient time to obtain its ready...

4 - Do not trivialize the purchase of a good

The mortgage is one of the most important purchases of French households. It represents more than a third of their annual expenses. It is therefore not an investment to be made lightly!

As more and more French people choose properties located in the countryside, La Centrale de Financement recommends paying particular attention to the city in which the household wishes to settle.

“It is important to pay attention to the economic and demographic dynamism of the chosen city, by precisely analyzing the urban plans envisaged by the municipality, the transport networks, the accessibility of nurseries, schools ... in order to guarantee a fulfilling life once installed but also an added value on resale! Because, although the loans are contracted in first intention over 22,5 years, on average, we note that these are mainly repaid at the end of 8,5 years (either because of a professional evolution with transfer, of an enlargement of the family, or even a separation of the couple ...). In addition, with the inflation of the price of energy and the implementation of a new Energy Performance Diagnosis (DPE), it is also essential to be particularly attentive to the energy performance of the good, by anticipating the costs. that could be generated in this context ... Real estate acquisition is therefore definitely not an investment to be trivialized! " adds Sylvain Lefèvre, president of the Centrale de Financement.

October 2021: lower rates on most loan terms

The month of October 2021 begins with a drop in mortgage rates over most loan terms. Thus, with the rates announced this month, a borrower taking out a loan of € 180.000 over 25 years at 1,18% will see his monthly payment rise to € 693,18 for a total cost of credit of 27.954 euros, or 2,63% less than the previous month (corresponding to savings of more than 750 euros) for a loan of the same duration and the same amount.

Rate development

Average real estate rates for October 2021 by loan term

The interest rate conditions generally observed are down by 0.015%, on average, for all loan terms combined. In detail: the most significant decrease in the credit rate is observed for loans contracted over 25 years, with a decrease of 0.03% compared to September 2021. For a loan term of 15 years and 20 years, the decrease rate is 0,02% from the previous month, and for 10-year and 12-year loans it is 0,01%. Only the credit rates applied to loans contracted over a period of 7 years remained stable from one month to the next.

The best real estate rates for October 2021 by loan term

The best rates obtained in October 2021 remained identical to those obtained during the previous month, all loan terms combined. Households therefore benefit from borrowing conditions as advantageous as those in September 2021.