2023-08-30 12:00:07
Young borrowers, especially at the start of their career, often have to deal with a reduced set of guarantees.
Analysis of Afdal.ma statistics shows that the lowest rates for borrowers under 25 show a sharp rise from 4.20% at the start of the year to 4.75% in the third quarter. These borrowers are often constrained by limited supply capacities. This is a factor that can lead to a significant increase in the cost of credit.
“The current environment, marked by the upward trend in interest rates, reveals disparate repercussions within the market for borrowers.” An observation made by Afdal.ma in a new decryption of real estate financing at the national level.
The online mortgage comparator indicates that this price change weighs particularly on the youngest borrowers. “In the current context, characterized by a complex market and a resurgence of interest rates, banks are staying the course by continuing to offer relatively attractive rates. Nevertheless, the impact of the rising cost of money is not uniform among borrowers. The youngest borrowers seem to be on the front line, exposed to the rise in interest rates”, explains Afdal in this regard. And to recall: “The mortgage turns out to be much more than a simple financial product.
Indeed, it serves as the foundation for a long-term relationship between financial institutions and their customers. The home loan commits the subscriber for at least 20 years. The use of real estate credit as a lever of attraction has become commonplace, and banks are doubling their ingenuity to stand out in a competitive environment”. Referring to Afdal, young borrowers, especially at the start of their careers, often have to deal with a reduced set of guarantees, including a modest initial contribution.
This situation may have an impact on the rates for which they are eligible. At Afdal.ma’s partner banks, the lowest rates in the third quarter for borrowers under 25 years old stand at 4.75% against 4.20% at the start of the year and 4.50% in the second quarter . The increase is less marked for the other age brackets up to 50, ie a revaluation of between 10 and 20 basis points compared to the start of the year. On the other hand, rates remained stable for borrowers over 50 years old. In the third quarter, the interest rate differential between the youngest (-25 years) and the other age groups widened further, reaching 55 basis points against between 20 and 50 basis points in the second quarter and a much lower level during the first three months of the year.
1693401281
#Rising #Interest #Impacts #Younger #Borrowers