In order to attract more and more individuals, credit organizations are constantly decreasing the rate of mortgages they offer. They are less than 1% for the best offers. So is this the time to become a buyer? For over 20 years, this is the first time this level has been achieved.
Affordable mortgage rates?
For this return the symbolic bar of 1% is passed for some brands of credit. According to the broker Nakor, for this month of September, the lowest prices on the market are trading around 0.35% over 10 years, 0.60% over 15 years and even 0.85% over 25 years! In other words, this is a historical threshold that has just been overtaken by mortgage rates.
The main advantage of these very low rates? All borrower profiles can finally apply for credit to carry out their projects. The duration of the credit is even negotiable to be able to increase the envelopes and to anticipate an increase of the prices of the real estate.
Low loan rates gone to last?
Know that it is because of the new policy of the FED (US Federal Reserve) that these credit rate decreases. Indeed, it decided to reduce its interest rates for the first time in 11 years. As a response, the bank opted to support this decision and thus relaunched the repurchase of receivables. “These counter-feet of the two central banks have reacted markets, with a fall of OAT 10 years, now maintained in negative territory,” said Philippe Taboret, Deputy General Manager of the broker.
In the current economic context, the situation should therefore remain stable. “We are waiting for the Bank next statement on 12 September, which should confirm the continuation of an accommodating monetary policy,” continues Philippe Taboret.
Is this the right time to repay his credits?
In the current economic situation, we are tempted to repay our mortgage. But be aware that when you anticipate the repayment of your loan you get a penalty. Before you start, take care to see if this is beneficial for you. If you still have years to pay, but have benefited from a very low borrowing rate, it is not necessarily wise, because you are subject to penalties from the credit mark. If you have funds, put your capital in savings or life insurance.
Anticipating your repayment is advantageous when the interest rate of the mortgage is higher than the value of the current rate. Also act according to the remaining duration of your mortgage: the ideal would be that you have not yet exceeded half of the initial term.
However, you will lose when your loan term comes to an end. This will also be the case when the interest rate you have incurred is low. In any case, do not hesitate to make an appointment with your banker to make adjustments.