In his Mortgage Loan Observatory, broker Meilleurtaux paints a picture of a two-sided market: on the one hand, buyers who are still eager to embark on a real estate project, on the other hand, higher prices but above all more obstacles are more problematic.
It no longer comes as a surprise to anyone, mortgage rates have gone up since the beginning of 2022. Inflation, war in Ukraine … the news is not great. Despite everything, the desire to buy is still very present among French families. According to the Mortgage Credit Monitor published by the broker Meilleurtaux, in the first half of 2022 the number of files filed was good, declining by only 4.3% compared to the same months of 2021 which were quite exceptional. And therefore , 393,254 applications have been submitted since the beginning of the year for financing requests.
1.85% for a loan over 20 years, as in 2016
1.85% is the average rate offered to borrowers for a 20-year mortgage in July 2022. According to Meilleurtaux, there is no standard bank rate lower than 1.70% for a mortgage above 20 years. And the More than half of the bars are above 1.90%! Rates take us back to 2016, when the average rate was 1.83%.
We have been used for almost two years with rates hovering around 1%, and even lower, it is true that the price hike in a few months, to reach almost 2% today, is rather annoying to borrowers. But this must be taken into account Rates of 2% in relation to inflation above 5% is always a very comfortable case, confirms Mal Bernier, director of communications at Meilleurtaux. For borrowers who have a real estate project, it’s never too late.
Save up to 70% On your borrower’s insurance
78 euros more per month, compared to December 2021
To borrow €200,000, you would need to factor in an additional €78 on your monthly payment, compared to the loan taken in December 2021. In fact, at that time, it was possible to borrow 1% over 20 years. For €200,000, this was a monthly payment of €920 excluding insurance.
Mortgage Credit: Do you have an interest in borrowing for more than 20 or 25 years?
Today, at an average of 1.85% over 20 years, the monthly premium is €998 per month. In total, while the cost of credit From €20,749 in December 2021, it is now €39,429a difference of 18,680 euros.
€236.873 of the average loan: an additional €20,000 in 2022
According to Meilleurtaux data, the average loan amount is 236,873 euros, over a period of about 21 years and 7 months. With higher interest rates, the loan is €20,000 higher than last year. The average contribution in 2022 is 43,960 euros. He, too, is up about 10,000 euros compared to last year. Borrowers have to make the extra effort to reach the same hoped-for surface a few months ago. It is not easy for everyone. Some first-time buyers are fortunate enough to help the family, but this is far from the case for all new borrowers. Deciphering devices Mal Bernier.
For those who cannot increase their contribution, the question of debt ratio arises. More and more files fail to stay below 35%, a requirement set by the High Council for Financial Stability (HCSF) since January 2022. In January 2021, with rates at the time, 71% of files were less than 35% from indebtedness. A year and a half later, in June 2022, the number of bankable files dropped dramatically. Only 59% of the files are less than the critical 35%. Currently, we have over 10% of files that are between 35-40% debt and nearly 30% which are completely endless files, Meilleurtaux points out.
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Borrower compound 2022
Who are the people getting mortgage loans today? On average, the borrowing family is 37 years old and earns 4,720 euros net per month. In 2022, the share of first-time buyers was 61%.
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