Mortgages are getting longer and longer

It rises to a record level. The average duration of real estate loans granted in the third quarter increased to 241.1 months, “A level never seen in the past”reports the Crédit Logement / CSA Observatory in its latest study, published on Tuesday 18 October.

This duration had reached 238.1 months in the previous quarter and 234 months between July and September 2021, specifies the CSA Crédit Logement Observatory. spokesperson Maël Bernier shares the observation by“A very clear trend” the lengthening of the duration of loans, with similar statistics for loans granted through intermediaries in this network.

“Before the rise in credit rates, the lengthening of the duration of the loans made it possible to lower the level of monthly payments”Maël Bernier explains to thanks for the information. Such an extension remains a means of reducing the amount of the sums owed by the borrowers.

Most first-time buyer loans are concluded for more than 20 years

Last month, “65% of bank loans for home ownership were granted for a period of between 20 and 25 years, a share never seen in the past”. The level of these credits still represented 46% in 2019 and 47% the following year. It had jumped to 55.5% in 2021. “Hardly anyone borrows at 10 or even 15”observes Maël Bernier.

Extend the duration of the loans “it is no longer sufficient to offset the consequences of the increase in house prices or to cushion the consequences of the increase in mandatory personal contribution rates”, indicates the Credit Housing / CSA Observatory. Loan applicants remain excluded from accessing the loan. “From late spring”this stretch “it simply avoids an even faster decline in loan production”his “efficiency” decreasing “with the increase in tariffs”.

Increase in credit rates

According to the same study, average mortgage rates stood at 1.78% in the third quarter, compared to 1.4% between March and June. At 1.05% in the third and fourth quarters of 2021, they rose to 1.13% between January and March.

This progress “It is done to the detriment of the dynamism of the new production” loans, thus penalizing those seeking a loan. On the other hand, the Crédit Logement / CSA Observatory notes an increase “moderate” rates in relation to the increase in the yield of the equivalent Treasury bill (OAT) in 10 years, which the banks use as a reference in determining the borrowing rates. Negative in December 2021, the rate on this debt bond issued by the state to finance itself on the financial markets has since increased. It has come close to the token 3% bar over the past few days, dropping to 2.851% on average on Monday, reveals a paper posted Wednesday by the Banque de France on its website.

Raising of wear thresholds

Credit rates must be set against usury thresholds, which banks cannot exceed when granting a loan. Their increase, from 1 October, has not permanently unlocked access to credit. According to Maël Bernier, the positive effects of this increase only lasted” ten days “due to the continuous increase in credit rates.

The Banque de France has raised the ceilings applicable until 31 December 2022 compared to those in force in the third quarter. According to a document published on September 29 in Official newspaperrates reach:

  • 3.03% for home loans with a duration of less than 20 years (2.6% in the third quarter);
  • 3.05% for those over 20 (2.57% in the previous quarter);
  • 2.92% for floating rate loans (2.45% in the third quarter);
  • 3.4% for these bridging loans which are bridging loans (2.99%).

Banks are not authorized to grant a loan whose potential annual percentage rate (APR) exceeds the applicable threshold. As Bercy reminds us on the website, the APR includes, in addition to the base interest rate, commissions, commissions and various remunerations, such as the remuneration of the broker you used, if applicable, or of the premium borrower. insurance.

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