Keeping your mortgage while changing property: this is one of FNAIM’s proposals to improve the mortgage market. But the latter seems difficult to implement.
2.50% on average: this is today, according to the broker Meilleurtaux, the average rate for a mortgage over 20 years. With a usury rate (maximum rate, all inclusive, above which banks cannot lend) set at 3.05% until the end of December, more and more borrowers find themselves blocked in their real estate projects. Now imagine that you obtained, one or two years ago, a credit rate of around 1%. You want to change property, but you don’t want to borrow at current rates.
What if you could keep your loan and your rate while changing property? This is this idea of portability of real estate loans from one property to another that the National Real Estate Federation (FNAIM) defended on Tuesday, December 6, during its annual congress.
I’m annoyed… These French still deprived of home loans despite the increase in the rate of wear
The idea is not new. Marine Le Pen had, for example, worn it in her campaign program for the 2022 presidential election: The French selling a property on which they would still have a loan to buy anotherwould keep the current loan and the interest rates, advanced the candidate in a forum News Tank in January.
On Twitter, the president of the FNAIM Loc Cantin recalls, however, that this idea has been proposed since 2018 by the National Real Estate Federation. The latter also offers the transferability of loans, that is to say that the loan would be transmitted to the new buyer of the property for which the credit was taken out.
Expensive transferability
For Ccile Roquelaure, spokesperson for Empruntis, the transferability of goods cannot be a real solution in France today: A real estate loan is not carried by a good but by a person and by his financial capacities. Today, with the French system, it is very complicated to say that a loan will pass from one person to another, even though they do not have the same financial capacities. It is therefore a proposal that is completely different from our model.
Real estate credit: find out the lowest rates for your project
Concerning the portability of a credit, the process is known, but today put aside by the banks, as Mal Bernier explained to us, spokesperson for the broker Meilleurtaux, a few months ago: more today. At the beginning, it was an additional advantage offered by the banks. But from the moment we had very low paying rates for establishments, it was no longer possible.
This existed in the past, but it was not easy either, because there were strong constraints to be able to claim it, recalls Ccile Roquelaure. Today, there is no more transferability, because banks are losing money on credit even though they estimate that it will last less than 10 years. If tomorrow, we reinstall portability, we will necessarily have to increase mortgage rates more significantly, because the credit will potentially last 20 or 25 years. This amplifies the cost of financing for bankswho will no longer look at what money costs 10 years but rather 20 years.