According to the IFOP study conducted at the initiative of the DENMo and published in September, the morale of the French is good on the subject of the real estate market. The exceptionally low level of mortgage rates is generating unprecedented enthusiasm for obtaining a loan, despite high prices.
Historically low rates!
Borrowing money is very cheap. The average mortgage rate was 1.43% in August according to the Housing Credit Observatory / CSA. That’s half less than in 2013! The IFOP / DENMo study reveals that 76% of French people find this better attractive real estate rate. The reason for these exceptionally low figures is economic: the banks are “selling off” their rates because they have not achieved their goals. The perception of the French is the proof, more than half of them (56%) consider it easy to obtain a mortgage. A record.
What does this mean for your loan?
The price of the real estate market is increasing but to maintain its activity, it is necessary to attract new buyers. The banks are now soft-eyed profiles they did not accept before reveals the analysis DENMo. It is necessary to have a CDI, a savings and to show that you are a good manager of your finances. Thanks to this, you will be able to negotiate your mortgage on exceptional conditions!
Make the most of this rare situation
According to the DENMo, the buyers have all the keys to negotiate a mortgage rate even lower than the one announced. Some loans were made at 1% with a 20 year repayment. You can also take the opportunity to increase the repayment period without exploding the proposed rate. You will be able to have lower monthly payments and respect the rule of the 33% of capacity of indebtedness.
If you have a personal contribution, you can choose to dedicate it to another project or to make it profitable by financing your purchase at 100% by a loan. In such favorable conditions of borrowing, it is a weighted choice. Play the competition to get the best mortgage possible… you just have to start looking for your future real estate and build a credible loan!