If you want to own an apartment or a house, you will probably have to bring a significant amount corresponding to 10 to 20% of the price of the property to hope to get a mortgage, warn real estate consultants.
Faced with inflation, rising cost of living and other war-related financial uncertainties in Ukraine, banks have tightened their mortgage lending criteria.
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Personal contribution of at least 10% of the property
“Banks are currently systematically asking for a personal contribution, at least 10% of the amount of the property, and post-operative savings that will not be used in the project, but will be used to avoid consumer credit at unforeseen costs. such as roofing work or buying a second car, thus reducing the risk of over-indebtedness or non-repayment of the loan “.explained Julie Bachet, CEO of Vousfinancer, reports The Midi Dispatch .
The contribution may vary depending on the banks and the financial situation, but it corresponds to 4 or even 6 monthly loan payments.
For others, the amount contributed to the project could reach as much as 20% of the fortune, according to Julien Maudy, deputy director of MeilleursBiens.com, who was interviewed by TF1 . “A few months ago, we could still buy with zero down payment and some banks even financed notarial fees.”.
Even the movements are now closely monitored by the banks due to the increase in fuel prices. “The records that were funded even six or eight months ago are no longer so today. This is why the French may have the feeling, quite rightly, that their credit report is going worse or better and that they have lost the boat. also commented Maël Bernier, a representative of Meilleurtaux.com TF1.
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According to a recent study by the real estate network Finance Conseil, the mortgage market in the first quarter of 2022 is slowing down by 17% in transactions.
Banks include new data related in particular to rising raw material and energy costs, and special attention paid to DPE (energy efficiency diagnosis), we can read.
“On a national average, we note that borrowers should have higher incomes, from an average of 3,781 euros to 4,754 euros. The personal contribution has increased dramatically, reaching € 52,594 compared to € 29,405 in 2021 “. This is a 79% increase in personal contribution in one year.
However, the level of contribution may vary by region. According to the Finance Conseil study, the PACA and Île-de-France regions have the highest level of contribution, reaching 20%. However, the average amount of credit requested decreased in most regions, and a national average of 4%.
In addition, in addition to a personal contribution, if work is to be planned, the banks ask “Additional safety savings in order to increase the cost of raw materials that service providers will pass on in part to the consumer”explains the brokerage network. “It is not uncommon to ask for 30% of the amount of work provided in savings as well as an update of estimates that must be dated at most one month to ensure the right price.”
The punitive rate of wear
In addition, a new obstacle stands in front of borrowers: the wear rate, the maximum BFM TV . This interest rate, set by the Banque de France, is the maximum interest rate at which a loan can be granted. Includes basic interest rate (or nominal interest rate), management costs and borrower insurance costs.
According to the Finance Conseil, the depreciation rate decreased by 0.01 points for more than 20 years, while interest rates increased.
The calculation of the interest rate is based on the average interest rates applied by the banks in the previous quarter, increased by one third, but the real estate interest rates between January and March remained low.
What “puts borrowers in a difficult position and primarily punishes first-time buyers with a small down payment and people over the age of 45 for whom the amount of insurance is higher”raises the brokerage network.
Because, at the moment, the amount should not exceed 2.4% for fixed rate loans of 20 years and over, it stipulates TF1. Exceeding the wear rate is prohibited by law. The problem is that the average lending rate is rising, but the usury rate remains low due to a three-month lag in its calculation.
“Almost 75% of Vousfinancer agencies have been facing loan denials since the beginning of March in relation to the borrowers’ default rate or debt ratio. In some agencies it is 20% of the files that no longer pass due to wear and tear, a problem that now concerns borrowers’ files, not only with a health problem or the elderly, but from 45 years old! »regrets the broker Vousfinancer, he invokes BFM, which gives for example: “Over 20 years, for 200,000 euros borrowed by a 45-year-old couple with an income of 60,000 euros, the proposed interest rate is 1.55%, with insurance from 0.35% to 50% for each head, ie APR, with all expenses . at 2.45%, higher than the wear rate at 2.40% ”.