Obtaining a real estate loan is becoming increasingly complicated. This is due to the post-Covid recovery, the war in Ukraine and inflation, which is causing a rapid rise in key interest rates. Brokers, bankers and promoters are successively worried about the longer-term consequences. Decryption by the teams of the Mobilis Group.
When you want to buy a property or build up your assets, you can apply for a real estate loan from a bank or a brokerage company.
To obtain this financial loan, you will have to consult several banking entities that will screen your income and your contribution.
You will have to appear before a "risk committee" and demonstrate a stable professional and financial situation.
To consolidate your file, several documents such as an identity card, a proof of residence, a sales agreement, a tax notice, salary slips... will be required.
Once the analysis is done of these different elements, the bank will propose you an interest rate which will be the reflection of the " risk " that you represent.
It will be necessary to add to this rate, the cost of the insurance of the real estate credit.
In case this overall rate is higher than the usury rate, the credit will be automatically denied.
Set by the Banque de France, the usury rate is an indicator that refers to the maximum rate at which a bank is able to lend.
Every quarter, new usury rates are defined by the Banque de France. Originally, the usury rate was used to protect borrowers and to prevent banks from lending too much money to households that would be unable to repay and would find themselves in a bind.
A recent study conducted by "opinion system" shows that since January 2022, banks have declined 45% of home loan applications due to usury rates.
The clients of luxury properties, both French and foreign, are in essence less risky profiles with larger deposits and higher incomes.
And this is reflected in the figures, because despite a difficult context, the luxury real estate market continues to prove its resilience and remains dynamic. Prestige properties continue to attract a lot of interest. In 2022, the Mobilis Group has sold properties with an average price per m² of 14462€ and has not experienced any retraction due to exceeding the usury rate. The majority of our buyers are over 50 years old. Their financial profiles are solid. Confident in the future, these buyers of prestige properties are mainly looking for their main residence.
Because buying a property is an important step in your life, the Mobilis Group accompanies you in your project and shares with you its real estate, tax and legal expertise. To build your real estate project, contact us directly at 01 4720 30 00 or via infos@groupemobilis.com
We will put you in touch with our banking partners most suitable for your project.
