Today, it is possible to obtain financing for the purchase of your home below the 1% mark. If mortgage rates are at the bottom, the delicate economic situation linked to the Covid-19 epidemic leads to fear of non-repayment, making banks more cautious. In response, will they increase their rates in 2021?
Rising unemployment worries banks
As a result of the health measures and confinements, many companies have had to reduce their activity. The projections for 2021 from the French Economic Observatory thus provide for the loss of 180,000 jobs due to bankruptcies this year. The future of the labor market is of concern to individuals, but also to banks. Indeed, with partial unemployment and redundancies, the risk of unpaid repayments increases. A fear that could lead to a rise in rates.
However, real estate professionals remain optimistic. This is for example the case with Fnaim, the leading trade union organization for real estate professionals in France:
What seems likely is that interest rates for borrowing will remain low . Words also echoed by Maël Bernier, communications director at Meilleurtaux:
You have to be calm for the first part of the year. I will not commit beyond May-June, but as it is, there is no reason for interest rates to rise . And if such hopes are allowed, it is not without reason. Indeed, the European Central Bank sets a key rate, the basis on which banking establishments determine the interest rates for mortgage loans. However, no increase is currently envisaged by the ECB in order to support economic activity. What reassure future borrowers for the months to come.
Households more advantaged than others
In addition to not having to worry about an impending interest rate hike in 2021, borrowers can currently claim excellent rates. According to broker Pretto, real estate financings can benefit from an average rate of 1.45% over 25 years, 1.25% over 20 years, and even 1.05% over 15 years. A rate at which we must add that of borrower insurance.
Le-Partenaire.fr confirms this trend and even adds that a decrease has been observed since January 2021: future owners can thus earn up to 0.10% over 25 years compared to the last months of 2020, 0.07% over 20 years and 0.05% over 15 years. However, disparities continue to exist between banks, but also between regions.
Each real estate purchase project is unique, and so is each borrower. As such, from one file to another, the interest rates vary, even over an identical financing period. The situation of buyers plays a predominant role here since, according to Empruntis, the best profiles have the possibility of borrowing over 20 years at a rate of up to 0.59%. Indeed, banks appreciate borrowers whose financial situation makes it possible to minimize the risk of non-repayment, but also those who can bring them counterparties: financial investments, insurance, etc. high-end bank cards…
But who are the profiles that the banks are fighting over? Basically, these are households with permanent contracts, whose income is high, with a low debt ratio and who are able to provide 10 to 20% of the amount of the project from their personal savings. Conversely, some households have found it more difficult to find real estate financing since the coronavirus crisis, in particular employees in the catering, events, aeronautics or hotel industry, as well as unemployed workers. partial.