Les taux continuent d'augmenter en ce mois de mai

Mortgage Credit: Real Estate Price Increases in February 2022 – AceCredit

Unsurprisingly, interest rates rose slightly in February and moved away from the lows of recent months. However, the listed price rates remain attractive to buyers who are considering buying a home.

Borrowing rate, bullish revaluation

In an inflationary context, several price increases are observed, mainly at average rates. However, the current conditions remain favorable for borrowers wishing to materialize their real estate projects.

In detail and according to the standards sent by the banks, Average rates are all slightly increased :

  • Over the course of 7 years, the market price increased by 0.10% to 0.65%;
  • Over 10 years, the average price has risen by 15 cents and now stands at 0.80%;
  • Over the past 15 years, the market price has increased by 10 cents and reached 0.95%;
  • Over the course of 20 and 25 years, the market price has increased by +0.1% to 1.10% and 1.25%, respectively.

Thus, all durations are recorded as a Slight increase from 10 to 15 cents for average rates. As for the best rates, they remain stable for the majority of them. Only the best 7-year rate is on the rise and ranges from 0.05 to 0.23%.

This increase comes The rate of OATs (Assimilables du Trésor) is on the rise Since the beginning of the year in the face of a Inflationary pressure reached 2.9% in January 2022, according to INSEE.

Borrowing terms that must comply with HCSF rules

This slight increase comes because banks must comply with the rules of the High Council for Financial Stability (HCSF). In this context, institutions continue to compete for the granting of mortgages. However, the loans granted must meet A maximum debt ratio of 35% (inclusive of insurance) and a maximum borrowing period of 25 years, which can be extended to 27 years in some cases (Purchase in new or old at 25% of business). Thus, even if rates increase slightly, they remain well below inflation. A strong reference for real estate candidates who can take advantage of conditions that remain attractive.

Broker-assisted financing solution

Despite this slight increase, organizations are still actively seeking clients and are relaxing the terms of giving them when possible. However, strict compliance with HCSF rules with rising real estate prices does not allow them to solve all situations. They must remain vigilant when analyzing borrower files. To get the best offers, it is essential to prepare your upstream real estate project. A minimum contribution of 10% is generally required to cover additional costs (Notary fees, escrow fees, etc.). With the expertise of a mortgage broker, it is possible to improve the borrower’s profile to find the best financing solutions. His experience allows him to negotiate the best price and obtain the best conditions for the realization of a real estate project.

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