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Getting financing for their real estate project has become more complicated for the French since the beginning of the year. Hence, a survey conducted by the six professional associations of credit brokers (IOBSP) highlights the sharp increase in loan rejections. 85% of respondents regret the rejection rate of over 20% and this rate goes up to 40% for 4 out of 10 mediators.
The usury rate and HCSF standards, the main obstacles to obtaining credit
Two major obstacles were identified in nearly 70% of rejected mortgage loan applications:
- restrictions imposed by HCSF (31%),
- wear rate (36%).
Like new subscriptions, the credit repurchase activity itself is affected by the wear rate constraint. As a reminder, the “erosion rate” is set The maximum that banks and credit companies should not exceed When determining the annual percentage fee applicable to the loan.
In other words, the APR cannot be higher than this legal maximum. Any breach of this rule exposes the offending institution to a fine of €300,000 plus a two-year prison sentence.
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Our wearable solutions
However, we remain on guard to find alternative solutions to the problems of the moment. We therefore offer you alternatives to fund some of the currently banned profiles:
- Insurance is not counted in the APR : Profiles aged 40 or over are restricted due to insurance. They can get a loan to carry out the work at a rate of 3.10% If the repayment period is less than 15 years, and 3.25% thereafter. To finance a balanced payment over less than or more than 20 years, the average rates are 2.23% and 2.28%, respectively.
- Post Financing : When buyers can buy cash, but want to borrow in order to recreate their savings, they can get at least €22,000 without refunding the loan and up to 70% of the property value. The The financing is repaid within a maximum period of 25 years with a mortgage.
- Buying back family debt If it is possible to lend relatives to borrowers to implement their real estate project, We can get the debt back then. Mortgage cash loan is offered at 3.10% or 3.25% depending on whether it is signed for less than 15 years or more than 15 years. If the transaction includes a consumer credit, on the same terms, the rates are lower, at 2.20% and 2.40%.
- donation loan : Borrowers have the option to take out a donation loan of at least €22,000 that can be repaid up to 25 years while taking out a mortgage, without having to buy back a potential loan. Average rates are 3.10% for under 15 years and 3.25% for longer term.