The market of the real estate credit opens up to more young people… but closes some seniors. Borrowing rates have never been so low: the buyers are likely to pay on average to 1.14 % of the capital borrowed over 20 years, and some manage to get into debt at 0.85 % over 25 years. These rates are not as happy: some files are refused by the banks because their annual percentage rate (APR), which aggregates credit rate, insurance rate, handling fee and cost of the security exceeds the wear rate, calculated every three months by the Bank of France. Since the 27th of June, this rate is set to 2.79 % for real estate loans, ranging between 10 and 20 years, 2.97 % thereafter 20 years. It corresponds to the average rates charged during the preceding three months, increased by one-third.
“The problem is that the longer rates are low, the more the insurance of the credit and the fee to take the weight in the annual percentage rate of charge”, explains Philippe Taboret, …
