Home loans: rate cuts are finally coming back

Is the worst of the mortgage crisis behind us? The number of loans provided is far from raising the bar (-43.5% in one year according to the Logement Credit Observatory), but some good news will please borrowers. Loan rates have stopped going up and better yet, they are starting to go down. Big banks that left the market because real estate loans were not profitable enough for them have returned. And the least we can say is that they are ambitious for 2024 and set out to conquer new customers. “The “No more lending” atmosphere is over!assures Pierre Chapon, president of Pretto, a real estate loan broker. All banks operate on the market.»

The National Bank, which has stopped lending in recent months, announced a 0.2% cut in its lending rates. Novelty? This declineapplies to all of France and all profiles», emphasizes Maël Bernier of Meilleurtaux. “This bank wants to be on the market in 2024 and returns to the level of the average market rate“, specifies Pierre Chapon. Over 20 years you can hope to borrow between 4.1% and 4.4% (excluding insurance and application fees) depending on your profile, and between 4.45% and 4.6% over 25 years. Added to this is a further possible discount of 0.2% as these are the rates shown before negotiation. Individuals who earn at least €32,000 net per year and couples who earn at least €42,000 per year are eligible.

People under 35, who are among the big losers of the real estate crisis, can also take advantage of this reduction if they earn at least 25,000 euros a year, which is barely more than 2,000 euros a month. Muffler: “To get to the 35% debt limit (maximum required by financial authorities, editor’s note), these young buyers, who rarely have high savings and/or down payments, will undoubtedly have to sacrifice m² or move out of the city center“, explains Maël Bernier.

“More frequent” declines from 2024?

What can we expect in 2024? “The beginning of the year looks a bit slow because even though competition between banks is stronger, there is still a problem with demand», emphasizes Pierre Chapon, who, however, does not rule out “more frequent and aggressive rate cuts in spring 2024“. But these welcome discounts for borrowers hoping to implement a real estate project could “create even more waiting and watching» among buyers who want to get the best possible price. “This is a miscalculation, as competition on the buyer side is likely to be stronger when rates fall more and bargaining margins are lower than today.», warns the founder of Pretto.

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