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Brokers are sounding the alarm. According to a survey, more and more loan application files are being rejected by credit institutions today. In question: the wear rate and hardening conditions of maturity.
Getting a Mortgage, Soon an Impossible Mission? In any case, this is the fear recently expressed by many professionals in this sector. In early July, 6 Professional Associations of Brokers in Transaction Banking and Payment Services (IOBSP) conducted a survey of the Opinion System (1), with the aim of identifying and highlighting obstacles to their activity.
The result is clear: for 40% of credit brokers surveyed, 4 out of 10 are blocked today. Among the reasons given to justify this refusal, we find: the erosion rate, i.e. the maximum rate above which the bank cannot give credit (36%), followed by the new rules imposed by the HCSF (Supreme Council for Financial Affairs). stability) for 31% of files. Among them, we find the ban on granting loans over a period of more than 25 years, with some exceptions.
What is the rate for your project?
All affected borrower profiles
According to this survey, the borrowers most affected by this rejection are those between the ages of 30 and 55. In other words, the category of borrower who is most inclined to buy a property.
The rate of attrition has become the main problem of obtaining financing, and It concerns all borrowers, whatever their age or project, explains Bruno Rollo, president of the Professional Association of Credit Brokers (APIC). That is why we wish to alert, with all the profession, to the dangers of excluding an increasing number of buyers as a result of the blockage of the real estate market.”
15% of rejected files have to do with the fact that they came from an intermediary
If banks increasingly invite brokers to lower their fees In order to pass a file under the rate of usury, calling a credit intermediary will not constitute an element of unjustified prohibition. Today, 18% of banks systematically request brokerage discounts and 43% request it more often. However, according to the survey, the fact that the file comes from a credit intermediary is the reason cited in only 15% of the rejections.
For Bruno Rollo, “It is necessary to adhere better to the reality of the price situation, and to give the banks leeway (…) to allow them to mitigate this setback. Finally it is necessary Reconsider the importance of recommendations The Supreme Council for Financial Stability, and its effects exacerbate the downturn.”
(1) An online survey of 1,417 credit brokers between July 8 and July 22, 2022.