Mortgage loan: an ideal period before a possible increase in rates

Published on by Delphine from OltottMesz

Even if the real estate market is still struggling to pick up, the current period is more than conducive to investment, some specialists say for their part that this favorable situation should not last.

Mortgage rates are currently at their lowest following the drop noted at the start of the year. After a slight rise in mortgage rates during the last quarter of 2013, rates stabilized and then started to fall again in spring 2014. The period is therefore ideal for real estate investment or for the renegotiation of its loan in given the low posted rates.

Professionals are thinking very seriously about a possible rise in rates in the coming months. According to some, this rise in mortgage rates could in part be due to new regulations.

Some credit organizations no longer lend without a minimum personal contribution

In addition to an increase announced by specialists, obtaining a mortgage could also be done under other conditions. This is already the case with a large mutualist network which requires the borrower to have a personal contribution capable of covering at least the costs of notaries and files. This practice risks becoming more and more democratic in the future.

Focus on direct clients rather than those who come through a broker

This is what certain institutions are saying, which now wish to prioritize quality over customer quantity, in order to comply with Basel III banking regulatory agreements, however, this would also have the effect of increasing credit rates. Others we will say that direct customers are customers who have most often domiciled their account in the bank which allowed them to subscribe to the loan offer. Banks also find that customers coming through an intermediary would often have had a poorer record.

New credit insurance regulations reduce bank margins

The future consumer law provides for a period of 1 year for the borrower thus allowing him to change credit insurance. This new reform planned by the government risks raising mortgage rates a little, credit insurance being the product on which banks often make the most profits and on which they rely to reduce the loan rate. .

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