Because of an APR that is too high, many potential borrowers will see their application rejected. Illustrative photo. (AlexanderStein/Pixabay)
The rise in real estate taxes, the excessively low rate of use and the rules of debt are driving more and more French people away from their real estate project. In recent months, the percentage of loan files that cannot be accepted by loan organizations has grown.
The euphoria of favorable interest rates is a thing of the past. Since the beginning of the year, real estate rates have started to rise at around 2%. “But you still have to keep in mind that the rates at 2% in the light of inflation at more than 5% is still a very comfortable situation,” explains Maël Bernier, communications director and spokesperson for Meilleurtaux.
A fatal limit set at 35%
However, in his last barometer relayed by
, the broker highlights the part of the French who are excluded from a real estate project due to lack of financing. The real estate purchasing power of families is well undermined by the situation. Indeed, the percentage of files that respect the rules of the debt is decreasing. In January 2021, 71% were below the debt limit of 35% and were therefore eligible for a mortgage. In June 2022, only 59% were below this limit.
“Currently, we have more than 10% of the files that are in the “critical area” and almost 30% that are completely unfinanceable”, explains Maël Bernier. The usury rate considered too low compared to the loan rate that nibbles is excluded. Meilleurstaux takes the example of a 42-year-old couple, who earn 3,500 euros of net monthly income. By borrowing 220,000 euros over 20 years at a rate of 1.85% excluding insurance, with quota insurance of 100% on women and 50% on men, borrower insurance of 0.40% and a deposit of 2 260 euros, their annual charge rate (APR) reached 3.04%.
The usury rate set at 2.57% has been exceeded. The couple will be rejected their schedule. “We are inexorably heading towards a completely blocked market, if usury is not reformed, warns Maël Bernier. Rejected applications continue to accumulate, with no solution for the French who dream of accessing property”.