A mortgage is thought to be long term. In February, loans granted by banks lasted on average 218 months. This time frame is just over 18, according to the Housing Credit Observatory / CSA . The duration of the loans is maintained at 225 months for accession in the new and 233 months for accession in the former.
The real estate market is reaching new heights
“The slight drop in interest rates since August supports demand, but is no longer sufficient to offset the rise in real estate prices.
Longer real estate loans
For the past four years, the term of home loans has been extended by 14 months. The year 2017 has been particularly dynamic in terms of the number of loans signed. That year, the average life of the mortgage boomed by 5 months. ” The current credit conditions facilitate the completion of household real estate projects, despite the rise in real estate prices since 2015, ” comments the Housing Credit Observatory.
On the other hand, the trend has been reversed in new real estate since the beginning of 2018. The duration of mortgage lending is being reduced with the decline in the support systems for accession. The decline in aid to become homeowners penalizes first-time buyers . These customers are often the ones who subscribe to the longest bank loans to realize a real estate project. This feature reveals a more limited repayment capacity.
Interest rates remain interesting
The disappearance of some help push banks to improve their offers to remain competitive, analysis The Credit Guide . Financial institutions offer longer loans, up to 30 or even 35 years. The proportion of loans over 25 years and over (30.1%) slightly exceeds that of loans over 20 years or more (30%) . Banks offer average rates of 1.49% for a loan over 20 years and 1.70% for a loan over 25 years.
Good news for customers, these amounts are very interesting. Interest rates have never been lower since February 2017, ensures the-loan-immobilier. These efforts, however, can not stem the decline in credit subscriptions since last December across all real estate markets. The relative cost of credit begins to rise slightly. It now stands at 4.1 years of revenue versus 4.0 a year ago at the same time.