should we rush to negotiate a loan or wait for better days?

Mortgage rates continue to rise in April and the trend for the next few months is not downward. So, should you rush to get your practice funded before the next raises or put your project on hold?

1.65%. It is, according to the broker Vousfinancer, the average real estate rate for a normal profile who wants to take out a loan over 25 years for a real estate loan. For a 20-year loan, the average rate is 1.45%, compared to 1% at the beginning of January. Add that to the borrower’s insurance and various ancillary costs: you could be close to the 2.40% limit for the usury rate set by the Banque de France for this second quarter of 2022. Maybe even slightly exceed it. So it’s better stop or postpone your project after?

It depends on which project we are talking about, asks Ccile Roquelaure, director of studies at the broker Empruntis. If you’ve had a crush or need housing, you can’t necessarily wait. On the contrary, if you do not have a real estate project today, it makes no sense to run to the banks in search of the best rates.

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Do you want to buy but you wonder if the period is the right one? It’s probably time to start. Per Mal Bernier, spokesperson for the broker Meilleurtaux, no one has to wait. The rates of 1%, I think it’s over. We have such inflation that it is no longer possible, we will never see it again. And they will continue to increase in the coming months.

A feeling shared by Ccile Roquelaure: there really is growing concern about interest rates, some of our banking partners hold interest rate committees twice a month. Waiting today means paying more for your credit.

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The uncertainty of the borrower’s insurance

For credit, is it now or never? Not really. Because in addition to the people who don’t have a project yet, rare profiles better wait a little longer. Those who have no choice to start, if their file doesn’t go through due to the current wear rate.

There is also the question ofwait for June 1st, end date of the mandatory medical questionnaire. The Lemoine law, which reforms the insurance of the borrower, could change the situation in some cases with the abolition of the medical questionnaire for loans up to 200,000 euros (per capita) and if the maturity of the loan does not exceed the 60th anniversary of the borrower. Potentially, for some profiles, from June 1st there could be the end of a surcharge that would block the file. We may therefore be able to lower the cost of insurance, explains Ccile Roquelaure.

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But even here, apart from rare cases, the wait is not worth it. Opposite is the credit rate which will continue to rise, Empruntis assures us. Today we don’t know if you will win on one side and what you will lose on the other. Except for one real health issue that’s a real hindrance to your buying plan, it won’t get better in two months.

An opinion confirmed by Mal Bernier, who also underlines the risk of seeing insurance rates increase for all from 1 June: it will be necessary to see how insurers’ prices will evolve. It is not entirely unthinkable that insurance prices generally rise. With the end of the medical questionnaire, insurers could in fact return to pooling the shared risk among all customers.

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