Getting a home loan is getting more and more difficult these days, to say the least. Even the wealthy aren’t sure about getting one. Blame the maximum rate a bank can lend at (the erosion rate) which is often exceeded. To lower the overall rate (credit rate + application fee, collateral, etc.), borrowers have some freedom. Extending the term of the loan or increasing your contribution is one of the most classic examples, but it is not always a guarantee of success. There is still negotiation as to the application fee which is taken into account when calculating the wear rate and thus weighs in the overall credit rate. In this area, borrowers can hope for a cause. But that was before!
To improve their profitability, more and more banks are increasing the application fee or less and less inclined to agree to negotiate it. Banque Populaire Ile-de-France has raised it from 500 to 750 euros, while the minimum LCL fee has been increased by 50 euros, to 750 euros and can rise to 1% of the amount borrowed, according to the rates currently in force. . , available online. At the Societe Generale you can pay up to 1,000 euros. If you choose BNP Paribas, the bill can be quite high: 1.1% of the amount borrowed, with a minimum of 500 euros. For a loan of 200,000 euros, that equates to more than 2,000 euros! “To hopefully negotiate these costs, you often have to compromise such as choosing home insurance from the bank you’re applying for for your mortgage.‘,” confirms Sandrine Allnier, of Vousfinancer, a mortgage broker.
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In short, it is a double risk for households who can therefore no longer rely much on lower application fees and suffer, at the same time, from a sudden rise in credit rates. But perhaps the situation could change. The French debt rate (OAT) falls back to 10 years, which banks check to determine the credit rate. In less than a month and a half, it went from 2.35% to 1.45%. Any hope of a drop in rates already exceeding 2% in 25 years? “I don’t believe in that. Banks will instead use this drop in OAT to rebuild their marginsSandrine Alonier analyzes. There might be some dips in September for banks that have fallen behind on their targets, but I don’t really believe in them.»