In his solutions to “help those who want to become owners but cannot succeed”, the Minister of Ecological Transition Christophe Béchu assured that he wanted to hold discussions with the banks around the establishment of a new hybrid loan, in citing in particular mortgage credit. While this type of financing may be of interest to certain investors, it is not currently a miracle solution for first-time buyers.
“We must give real estate purchasing power back to the French. Too many households are refused, banks must make efforts. This involves new financing mechanisms, I am thinking of “ultimate” or “mortgage” loans, as already exists in Switzerland where it works very well. We will meet all the players in the banking sector at the end of February to discuss it. »
A new hybrid credit under study
To relaunch a partially blocked real estate market due in particular to the sharp rise in credit rates in recent months, the Minister of Ecological Transition Christophe Béchu is playing the card of the new type of real estate loan, straddling the “classic” loan, credit in fine and the mortgage loan. “The principle is simple,” explained Christophe Béchu in the columns of Parisian this Monday. You want to buy a property, you take out a loan over 20 or 25 years not on 100% of the price but on 80%, which you typically repay over time. The remaining 20% remains in the form of a mortgage on which you only repay the interest and not the capital. »
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“In principle, it’s a very good idea,” says Boris Intini, Managing Director of PraxiFinance, a specialist in mortgage credit for over 30 years. The problem is that it is a solution that very little exists in France today. The discussion which will take place at the end of the month with banking players is a way of going around the table, and an opportunity for banks to highlight new products. But we shouldn’t expect a new loan to arrive in March to change everything. »
“We should not expect a new loan to arrive in March”
Can setting up a loan of this type really streamline the real estate market? “We are moving away a little from the main idea which is to give first-time buyers the opportunity to become owners,” concedes Boris Intini. However, there is a part of the population who could implement their project thanks to this system, in particular people who already own a main residence who would like to make a rental investment but who would have suffered a refusal from the bank for a traditional loan because of their age, for example. This allows you to expand your real estate assets more than creating one. »
A higher cost
Finally, “the cost of a mortgage loan is higher than for a loan with a guarantee organization,” estimates Maël Bernier, communications director at Meilleurtaux. Additionally, it requires some adjustments. It would be surprising if banks agreed to finance a loan that would be covered 80% by a guarantee company and 20% by a mortgage. »
For their part, banking establishments had already shared their serious doubts about the minister’s idea at the start of the week, questioning via the French Banking Federation (FBF) the Swiss parallel and putting forward the high price for the borrower. They will have the opportunity to discuss it with the minister at the end of the month.