Real estate credit: the French stressed in the face of the steps

The number of applications for real estate loans are increasing, those of the transactions also but the buyers are always so stressed with the steps to be undertaken. Explanations.

According to figures from the National Real Estate Federation, the FNAIM, the cap of 900,000 real estate sales * was exceeded last June. The outlook for the real estate market for 2017 is encouraging with the million real estate sales expected in late December and 250 billion home loans that have been released by banks. Yet the French are struggling to understand how real estate loans work.

In a recent Opinion Way survey, one in five French people think that taking out a mortgage is “very complicated”, 65% find it “complicated”. The complexity is more perceived by women, the youngest (less than 35%) and the less affluent social-professional categories.

Go through a real estate broker

Go through a real estate broker

Once a first credit subscribed, 58% of respondents still find that the process is complicated (78% for people who have not taken a loan). The use of a real estate broker lowers this percentage a little: 56% of people who go through a broker then talk about simplification.

61% of first-time buyers find that the different elements of a loan (insurance, guarantee, early repayment …) are the most complicated to understand, then comes in order the constitution of the file, the comparison of the offers of loans, and find the best rates.

European obligation

European obligation

However since 2016, there is the obligation to give a standardized European information sheet. This sheet presents the essential points of the offer (rate, amount, periodicity, fees …), to better understand the conditions of the proposed loan, and possibly to simplify the comparison of several offers. There is still some way to go for a real simplification and understanding for future borrowers … Some figures * The previous record was 845,000 transactions in 2016. The high figure for 2017 is, however, to put into perspective because since the year 2000 the housing stock is increased by 20%. This increase in transactions is not uniform in France: 46% of transactions are concentrated in 20 departments.

The FNAIM also finds on average an increase in prices between 3.4 and 4.4% depending on the type of housing (house or apartment), but we must also take into account geographical disparities especially with the attractiveness of large cities such as Paris or at this time Bordeaux which has the wind in its sails. The number of housing starts also increased by 14.6%.

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