A longer mortgage, the Grail to access the property? Patty Robs, president of the In & Hi Credits network, thinks that the extension of the loan term will make it possible to ” solicit the largest number of candidates for the acquisition “. This Wednesday, September 26, Libération however warns against credit over 35 years.
Mortgage rates have reached a low level. At the same time, prices continue to climb. The increase in Ile-de-France reached + 4.8% in one year in the second quarter of 2018, according to the Chamber of Notaries. The increase is even more spectacular in Paris (+ 7.1%) over the same period . Regional capitals like Lille (+ 3%), Lyon and Marseille (+ 4.1%) or Nantes (+ 4.3%) follow the same trend. Difficult for some to borrow more.
Low rates are not enough anymore. ” The rise in prices is there and some households, with their income, can not absorb it, ” acknowledges Cécile Roquelaure, director of studies of the broker Empruntis. Abolition of the APL accession, restriction of the loan at zero rate (PTZ) … The modest French suffer from the decline in home ownership assistance . To boost sales, some real estate loan professionals are pleading to extend their term to 35 years.
Towards lower prices?
This solution, however, presents risks, in the event that real estate prices fall. The subscriber of a 35-year loan would thus find himself ” at the head of a real estate asset in loss of value and with a very long-term debt ,” warns Libération . Some professionals in the banking sector believe that they have already lengthened the duration of the loans and relaxed the conditions for granting them . Loans over 30 years remain marginal.
Only the municipal land bank of Alcotin and Morraine offers so far loans as long. Rather than extending credit, some financial institutions prefer to wait for prices to fall again. This phenomenon could occur as early as 2019 ” with the rise in rates decided by the Euro Life Bank ,” says the broker BetterAgents. Better to think twice before contracting a mortgage as long.