Mortgage Credit: Punishing Low Income Families -

2% mortgage rate limit reached –

real estate rate

The real estate interest rate increased again in August 2022 and is currently around 2%. However, lower bond prices open the way to eventual stabilization. It remains to be seen if this situation can be maintained given that the European Central Bank has another project. The organization plans to review the price of the key.

Another increase was observed among banks in August 2022 with regard to the interest rate. This increase raises the mortgage rate to 2% for some profiles. This threshold can also be exceeded due to the level reached with inflation. At the moment, it is still difficult to plan for the start of the school year. On the other hand, bond yields fell after hitting a record high. With that said, the European Central Bank plans to revise key interest rates. It remains to be seen what stance the lending institutions will take. In fact, for now, they have chosen to keep their customers.

What is the rate for your project?

Banks avoid passing on increases to consumers

has evolved real estate rate Will be based on progress Bond rates (OAT 10 years) at the beginning of the school year. The decision taken by the European Central Bank will also affect the market. The organization plans to Raise the main rates.

At the moment, the borrowers are completely unaffected by the development of these factors, as they are spared by the banks. Furthermore, some establishments may choose to offer discounted rates despite the economic context. A policy applied to attract more customers. According to our spokesperson, Maile Bernier, the interest rate should be 2.5% if banks pass on all the increases to consumers. It is not at that level now.

Sharp drop in bond prices

According to data collected in August 2022, The mortgage rate ranges between 1.70 and 2%. The average is:

  • 1.70% for a 15-year loan;
  • 1.80 to 1.90% for 20 years;
  • 2% for a 25-year contract.

These numbers reflect 10 basis points growth Compared to July 2022. The increase pertains to all profiles and all durations. progress 30 basis points on average compared to the rates recorded in June.

Clients with better incomes however receive a rate of 1.40% over 20 years and 1.55% over 25 years. In August, banks raised their borrowing rate for the seventh time in a row. A significant portion of them are now over 2% by the age of 20. Bond prices fell to 1.35% after hitting 2.35% in mid-June 2022.

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