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Credit rates reached 3.15% over 20 years, and the amounts lent by banks fell by 40% in one year. Credit conditions have tightened to the point that the government is considering a way to ease them in order to boost sales.
Within a week, Alexandre Simon, medical representative, will finally be able to sign the loan for the purchase of his first apartment. 480,000 euros at 3.05%, a credit that he struggled to get with his partner, despite a solid file. “We found ourselves in a bit of a bottleneck, where both the price of real estate remained high, and the rates began to increase“, he explains.
Higher rates and overly strict criteria
According to their broker, Sophia Hbaz, their situation is far from isolated. The refusals of loans are multiplying: – 40% of real estate loans over one year. In question, first of all the rise in rates, which have on average tripled over the past 12 months. Professionals also point to criteria that are too strict. Banks must now respect a maximum debt ratio of 35%, and a maximum credit period of 25 years. Brokers are calling for relaxations.
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