At the end of the year, banks are frequently crumbling under the demands of mortgages. Indeed, all files including a loan agreement such as the zero-rate loan (PTZ) or files related to a tax-free device such as the Pinel Act must be published before 31/12/2018 to benefit from advantageous conditions. Not to mention winter holidays that involve a lack of staff, advice, do not delay in finalizing your file if you are in this situation.
What is zero rate loan?
If you are first-time buyers and want to benefit from the advantageous terms of the zero-rate loan, do not waste time. As every year, the banks stop proposing the PTZ in mid-November. Between the deadline for the acceptance of insurance, the publication of loan offers, the 11-day cooling-off period and the release of funds at the notary’s office, banks anticipate and request that files containing a PTZ be presented at the latest.
The Zero Rate Loan is a government-assisted loan that allows you to buy a home when you have not owned your principal residence in the last 2 years. The obtaining of the PTZ is subject to income conditions and its amount depends on the geographical area of the place of purchase. The loan can only finance part of the purchase, it must be completed by one or more loans and possibly a personal contribution. Housing must be new or old with work.
Good news, rates will stay low until the end of the year
According to the XCI Bank (XCIB), borrowing conditions will be favorable until the end of the year. Banks continue to finance themselves at very low rates and mortgage loans remain the best appeal product to attract new customers. All indicators are green to keep rates low. However, if inflation continues to rise, and this is a good sign, it is likely that the rates will follow the same curve and could be revised upwards during the summer.
Homeowners can also take advantage of low rates by renegotiating their credit under certain conditions. The borrower must be in the first half of the repayment of his loan, the borrowed amount remaining due must be at least 70,000 euros and the difference between the current rate of the current loan and that of the new credit must be between 0, 7 and 1 point.
Best Real Estate Rates of October 2018
|duration||Best fixed rate||Trend||Monthly *|
|7 years||0.45%||Stable||120.95 €|
|10 years||0.65%||drop||€ 86.09|
|15 years||0.90%||drop||€ 59.41|
|20 years||1.05%||drop||€ 46.21|
|25 years||1.25%||drop||€ 38.83|
* Monthly payment excluding insurance for € 10,000 borrowed capital