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Real estate: soon 27-year loans
The average borrowing rate for property loans over 20 years is 4.25%. Relaxation measures were announced on Monday, December 4, including a credit repayable over 27 years. – (France 2)
Relaxation measures for real estate loans were announced on Monday, December 4, including a repayable loan over 27 years.
Today, the duration of a home loan is 25 years maximum. It will now be possible to go up to 27 years in certain cases. A borrower is very narrowly blocked from borrowing over 25 years. Switching to 27 years old could be beneficial to him, because he would then be in the nails. “30 euros less, that has an impact on debt”assures Jonathan Mhanni, broker.
Who will be able to benefit from this measure?
The measure, announced Monday December 4, will take effect in the coming days. However, not everyone will be able to benefit from it. Bercy sets the rule that 10% of the loan must finance renovation work. The monthly payments over 27 years would then drop very little and would fluctuate by a few tens of euros. The Banque de France does not want to relax credit too much in order to avoid over-indebtedness.
Among our sources
High Financial Stability Council (HCSF)
Credixia
Best Rate
Borrowed
Non-exhaustive list
