The (slight) rise in real estate rates does not affect the outstanding amount of housing loans granted to individuals. According to the latest figures from the Francia bank, outstandings continue to increase in March, and more rhythmically
Outstanding amounts that do not decline in the first quarter
Let’s take stock of the first 3 months of the year. Growth accelerated from January to March: + 5.1% growth rate in January 2017, + 5.3% in February and + 5.6% in March. On a gross basis, loans outstanding amounted to 914 billion euros.
If we take only new loans, the total amount is 32 billion for the month of March, a decrease compared to December 2016 (33.2), January (37) and February 2017 (32.7), but much higher than October 216 (24.5) and November (27.9).
Credit rates that rose moderately
As we have seen in recent months in our barometers, fixed rates for home loans have begun to rise since December. But a moderate rise. Confirmation with FB figures:
October 2016: 1.60%
November 2016: 1.56%
December 2016: 1.50%
January 2017: 1.50%
February 2017: 1.54%
March 2017: 1.53%.
The share of mortgage renegotiations in decline
It was expected, loan renegotiations decline, a consequence of the rise in property rates. One only has to see their share compared to new credits: after the peak of January (61.6%), it rose to 52.1% in March (59.8% in February).
For the record, the renegotiation of real estate credit, more commonly known as buyout mortgage, is to review the financial terms of its credit to obtain a more favorable interest rate.
Do not forget the mortgage insurance
There is a lot of talk about bank rates, but borrowers do not have to focus on just that one thing when they’re negotiating their mortgage.
Mortgage insurance is also a significant cost. Important point: to ensure you get the best insurance terms, you do not have to accept your bank’s group insurance proposal. You can call on external insurers to compare their offers and possibly benefit from individualized rates. In this case, we speak of insurance delegation.
For the record, this type of operation is possible:
when negotiating your mortgage (Lagarde Law, 2010);
up to 1 year after signing the mortgage (Hamon law, 2014);
after this period of one year, on each anniversary date of the mortgage insurance contract (Annual Termination Act, 2017).