Tighter housing loan conditions and an increase in interest rates will make purchase projects for first-time buyers without contributions more complicated. For now, don’t worry about the regional real estate market.
“We’ve crossed the edge.” Antoine and his partner began the process of obtaining a mortgage at the end of January, in order to purchase their first property, a house without a garden and work, in the north of Haute-Garonne.
Lacking them, the couple, both on permanent contracts, chose to contact the broker who acquired them at a rate of 1.33% over 25 years. And without any input required. “It’s not bad, especially since it has increased now.” In their usual bank, they were offered “1.40% over 20 years with a contribution of €10,000”. So it will be 180,000 euros, at 1.33%.
“We tell ourselves, ‘Fortunately, we took the steps before conditions tightened.’ That was right after rates started going up. Things went really fast, and it was progressing every week.”
First time buyers without input. A glimpse of buyers who may struggle with their project in the face of tighter mortgage loan terms and increasing rates (which remain moderate according to several real estate agents interviewed).
Funding simulations that ‘no longer work today’
For François Lateau, managing director of the Intégral Immobilier group operating in Toulouse and the city of Toulouse, the increase could lead to “exceptions, especially for the most vulnerable buyers: first-time buyers without a contribution or files for which the income is not appropriate is very important .. there is a financing simulation that has passed since A month and a half and today it does not pass.
Vivian Bozenac, real estate negotiator at Guy Hocquet Toulouse Center Agency, wants to be reassured. “The increase in interest rates is not dramatic. It took about 0.20% but it is really low. Banks are more difficult, but the criteria remain classic: nothing alarming.” According to him, the market should not really be affected, “in any case, for the center of Toulouse.” Even if some buyers have to compromise in terms of location, area or budget. He realizes, however, that it should be more complicated for those who may request a loan without a contribution.
“I’m not worried, but I’m careful”
Sales don’t slow down. “We don’t expect a crash,” says a real estate agent from the Toulouse region who preferred to remain anonymous. “For several years, nationally, we’ve been surfing a wave. In terms of sales, we’re up. After that, it depends on our segments and our buyers.”
Yannick Signès, director of the Orpi Capitole Immo agency in Toulouse, sees the glass as half full. “As long as rates remain moderate, there will be a slight impact on the condition but not strong enough to disqualify buyers, unless we get to 2% and it continues to go up. I don’t think that will slow people buying, but maybe it will correct prices a little bit which tend to go higher. In the Toulouse region and launching negotiations.
“I’m not worried, but I’m careful,” says François Lato. “The market should hold up well at least until the beginning of the school year in September. Many buyers will rush in fear of higher prices further. For the second half, if rates continue to rise, and inflation also picks up, it could have an impact on sales.”
Custer: “UFO” thanks to the highway of the future
What will be the impact of tightening conditions for obtaining a mortgage in the Caster market? “In the long term, with the arrival of the motorway, the trend will be positive. But in the short term, we lack vision in terms of mortgage lending restrictions,” explains Pierre-Philippe Butillon, director of ArthurImmo. from Custer.
Because the city has a rather special situation. “It’s a UFO,” Pierre-Philippe Poitillon shot. “Because of the arrival of the motorway in the next few years, it has become especially interesting to come and settle in Castres. We have requests from people from outside the southern Tarn who would like to come and settle there.”