Our tips for finding a mortgage in the midst of an inflationary crisis

Are you looking for financing to buy a property in which you want to live or rent? Warning: finding a mortgage is difficult. Rising borrowing rates and low usury rates, these ceilings that the annual percentage rate of charge (APR) on bank loans cannot exceed, deprive many people of access to credit. Institutions have also already met their credit production targets for 2022 and are not looking for new borrowers this year.

“Before the summer, many banks suspended production, both for loans taken through intermediaries and for all loans”explains to Thanks for the info Sandrine Allonier, director of studies and spokesperson for Vousfinancer. “Due to low usury rates and inflation, banks find it difficult to generate profitability. In the summer, they also experience a lack of staff.says Sandrine Allonier.

Rates above 2%

Between July and September 2022, for all mortgages “lasting between 10 years and less than 20 years”, the usury threshold in force reaches 2.6%, according to a document published on June 30 in the Official Gazette. For a loan with a duration of 20 years or more, the rate is 2.57%. Some banks have temporarily withdrawn from the mortgage market. The spokesperson for Vousfinancer evokes the example of a bank offering a rate of 2.2%, whatever the profile of the candidate and the duration of the loan. Such a level excludes almost all people looking for financing, given the calculation of the APR which cannot exceed the usury rate.

Because, as Bercy’s website explains, the annual percentage rate doesn’t just designate the base interest rate. It also includes the costs, fees and various remunerations paid in connection with the loan subscription – for example the administration fees or fees of any broker you have used – and the insurance premiums of the borrower.

Loan applicants must demonstrate to the bank they are in contact with that lending them can be profitable over time.

Submit a personal contribution of more than 20%

You must submit a personal contribution that represents at least 10 to 20% of the amount of your acquisition. Also, inform the bank that you will repatriate your assets and that you will be able to take out investments such as life insurance, home savings plan (PEL) or equity savings plan (PEA).

Indeed, such products are likely to generate profitability.

Take out borrower insurance and home insurance with the bank

If the bank offers you to take out credit borrower insurance, respond positively. You can also state that you will take out home insurance with her to cover the property you intend to purchase. Does the establishment offer you to buy shares in the bank? It is advisable to give a positive answer.

Wait before looking for a mortgage

The wisest thing to do before looking for a loan is to wait a few weeks … or a few months. The new abandonment rates will come into effect on 1 October. The increase will be approximately 0.2 points, expected from thanks for the information a source under the seal of anonymity.

But, to maximize your chances of finding credit, it might be wise to wait until early next year to hopefully get a mortgage. Banks will set new production targets for 2023.

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