One in five French people think that taking out a home loan is particularly complicated. Having the first experience in borrowing is a real plus.
Take out a mortgage, a complicated journey for some
Last year, low interest rates on home loans beat borrowers. In fact, faced with particularly attractive financing conditions, purchasing decisions have accelerated so as not to miss this low interest rate window. However, given the statistics of 2017, the favorable situation for borrowing does not seem to have arrived at the end of the race. As a result, real estate acquisition projects continued to materialize in recent months. Last year, banks released $ 250 billion in housing loans. In 2017, the funds released could well exceed this ceiling.
However, when looking to finance their property, the French are not equal in terms of banking knowledge and in particular on mortgage issues. The recent Opinion Way survey confirms this trend. According to the study, mounting an immo loan file is perceived by some as a real obstacle course. Moreover, depending on the socio-professional category, the point of view evolves. Thus, the less affluent households consider to 69% that the underwriting procedures are complex.
Over the entire sample, about 1 in 5 French even think they are very complicated.
Loan offers remain unclear
Age is also a factor to consider. For example, the under-35s are 70% to note this complexity while among the most mature households, they are only 63%. Having the first experience in credit can help to overcome these fears. Novices in this area are 78% to find complicated procedures against 58% for those who have already had a mortgage previously.
First-time buyers have the most difficulty understanding all the ins and outs of a home loan (61%). Gathering all the supporting documents and comparing the offers are two approaches that are also experienced as difficulties. As a result, an approximate understanding of a credit offer does not help an optimal comparison. This is despite the mandatory introduction of a standardized European fact sheet that groups together the key elements of a mortgage loan.