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Money: Real estate credit: How many households go into debt over 20 years?

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become owner , a real obstacle course for many French people. And this is particularly due to the extension of the duration of the mortgage to which they subscribe, explains the Figaro Immo . According to the Credit Observatory, they are now in debt over 248 months, more than twenty years, against 200 months approximately ten years ago, less than 17 years. More specifically, 67 % of loans were granted for a duration between 20 and 25 years, the maximum legal threshold. 19.5 % of real estate credits were granted for a period of 15 to 20 years. While there were only 14 points of difference in 2020, the gap now is around 50 points (47% against 33%).

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 © provided by Wirtschaftswoche Cologne is one of the cities that threaten to break in real estate prices Photo: Imago imagesdata portal copyright = real estate in Germany has become more expensive again. But this trend will soon turn back: a new survey warns of up to ten percent of price declines. The situation on the real estate market is currently confusing.

A mortgage with less important monthly payments

why? Because the French borrow on increasingly long durations in order to be sure that they are given a mortgage. Consequently, the monthly payments due are less important. However, getting the bank's approval becomes complicated, as the conditions have hardened. "This extension is no longer sufficient to compensate for the consequences of the increase in housing prices or the increase in personal contribution rates required, and its efficiency is growing as the credit rates increase" , analyzes the Housing Credit Observatory.

In addition, banks are increasingly demanding about the guarantees requested from the aspiring owners. "Many establishments grant credits that are not always profitable," says the director of borrowed studies, Cécile Roquelaure,. Those who still agree to lend at a loss, do not wish to do it for everyone and are more and more selective ”. And the cost of credit never stops flambé. Obtaining a 1% loan was still possible last year. It is almost impossible today to get one of 2%. According to Capfi, the average rate amounts to 2.2 % over 20 years, and 2.31 % over 25 years. More specifically, with this increase in the credit rate, subscribers must reimburse additional tens of euros each month.

To offer a 100 m² house in Île-de-France, the cost of the Credit Flamb Credit

 To offer a 100 m² house in Île-de-France, the cost of the Credit Flamb Credit © 185718373/Alfa27-Stock.adobe.com " unless you buy without borrowing, rare are the households that are Sure of having a mortgage , ”says Maël Bernier, of besttaux. Even wealthy quadras, which buy new accommodation, can be turned back. " There are a little fewer young buyers in Paris, knowing that the majority of real estate acquisitions, in the capital, are secundo accessents ", analyzes Me Thierry Delesalle, notary in Paris.

Thousands of files were unlocked thanks to the revaluation of the wear rate last October, but the debt rate is still hampered by the increase in credit rates. The first must not exceed 35% of the available revenues from the aspiring owners. In one year, the number of loans granted fell by around 16 %, by 14 % for the amount of production. The only lightened in this gray sky, France borrows from a rate that is gradually relaxing.

Article Real estate credit: How many households go into debt over 20 years? appeared first on Better Living your money .

Stimulus update: Direct child tax credit payment worth up to $3,600 could be sent out under new proposal .
A child tax credit payment could see an increase if Congress takes action to enact its expanded form. Rep. Adam Schiff (D-CA) has asked House Speaker Nancy Pelosi and House Majority Leader Steny Hoyer to increase the Child Tax Credit for every child a family has by at least $1,000. The tax credit reverted back to its original form of $2,000 per child in December 2021, according to a statement from Schiff.

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