Not surprisingly, the increase in usurious rates on 1 October was accompanied by an increase in the banks’ scales of mortgage rates. It is therefore better to hurry up and pass on your file.
A little air, but for how long? The increase in the interest rate, the maximum rate above which the bank cannot offer loans, passed on October 1 from 2.57% to 3.05% for loans of 20 years and over. Faced with this announcement, brokers wanted to be positive. Indeed, the latter regularly points to the speed of attrition and accuses it of significantly slowing down access to real estate credit.
With an attrition rate of 2.57% over 20 years and more, all costs included, including borrower’s insurance and any brokerage fees, credit files with a credit rate offered by the bank of more than 1, 90% sometimes had trouble passing for borrowers over 40 . However, very few banks today offer rates lower than 2%… From now on it will be possible toget a loan agreement from a larger number of banks offering rates of up to 2.40%, calculated Sandrine Allonier, spokesperson for Vousfinancer.
However, borrowers with a real estate project would be wise to send their case as soon as possible. While mortgage rates had remained relatively stable this summer, in October they rose on average from 0.20% to 0.3%. And the trend should continue. The European Central Bank announced in recent days that its key interest rates would be revised upwards. Automatic the banks will be forced to raise their interest rates and we will again find ourselves in a pinch of property credits, fears Pierre-Etienne Beuvelet, general manager of IN&FI credits. For him, rates will continue to rise before returning to near stability between the spring and summer of 2023.
A relatively short shooting window
The increase in rates continues and it is not a surprise in light of the increase in the price of money, confirms Ccile Roquelaure, spokesperson for Empruntis. Actual OATs (equivalent government bonds that serve as benchmarks for banks to set their credit rates, ed. note) increased by 58 øre in one month. 2.14% at the start of September, the 10-year OAT was at 2.72% on 3 October. Depending on their capital needs, the banks transfer this increase to their credit interest rates. Those with significant needs increase more than the average, which is 20 cents.
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If the increase in wear rate thus makes it possible today to pass a majority of the files that were blocked yesterday, what will happen in the coming weeks? The window of opportunity available to borrowers with the increase in the rate of attrition will be relatively short, predicts Ccile Roquelaure. It is therefore more time than ever to get started and make your project a reality. For his part, Pierre-Etienne Beuvelet estimates that the improvement will last a month, a month and a half, depending on how quickly the banks raise their interest rates.
Prospective borrowers will have to cross their fingers and pay particular attention to their files, with some banks proving increasingly strict in their loan terms. Banks are looking for high income profiles and able to bring savings back after the project, confirms Pierre-Etienne Beuvelet. And for the others, all is not lost: some banks are looking for market share, at the risk of losing a small margin at the moment.
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