Loan: trend in the mortgage market and borrower insurance conditions

In its latest economic outlook note on loans to individuals, the Capital Lender reveals the main indicators of the sector.

Mortgage loan rates are rising, volumes and the share of mortgage repurchases are falling…

In April, Lite Lender forecasts turn out to be correct with the continuous fall in volumes. Decryption.

917 billion in outstandings in April and an average rate of 1.57%

917 billion in outstandings in April and an average rate of 1.57%

The volume of loans distributed in April amounted to 27.1 billion USD. An amount in decline and lower than the amounts distributed since November 2016.

  • 27.8 billion USD in November 2016,
  • 33 billion USD in December 2016,
  • 36.6 billion USD in January 2017,
  • 32 billion USD in February 2017,
  • 31.4 billion in March 2017.

Outstanding home loans totaled 917 billion USD in April, with a gross annual growth rate of 5.8%.

The average rate of new loans rose from 1.54% in March to 1.57% in April. Slow progress. Real estate financing conditions remain exceptional for borrowers.

Since last December, mortgage rates have increased. This trend has an impact on distributed loans, with in particular the decrease in the share of home loan repurchase. The repurchase of credit reached 49.6% in April against 61.6% in January! A share that is still important in the production of new home loans.

Are you embarking on a mortgage project? Compare loan insurance

Are you embarking on a mortgage project? Compare loan insurance

When looking for a home loan, be attentive to the insurance contract linked to the loan. It is recommended to read the conditions of the contract.

Why mortgage insurance?

Home loan insurance is not mandatory but the bank will require that you take out one. The objective is to protect the loaned funds and to insure you against life accidents (death, loss of job, disability, etc.). The level of cover depends on the quota, the conditions of reimbursement, lump sum or indemnity.

The loan insurance rate allows you to compare loan offers. The higher the rate, the more expensive your insurance will be. Since the Lagarde law (2010), you have the possibility of taking out external insurance. If the bank’s offer, often a group contract, does not suit you in terms of rates and coverage, you can take out individual insurance.

The only condition: find a contract with the same reimbursement guarantees as that of the bank. In addition, it is possible to change mortgage insurance freely in the first year thanks to the Hamon law (2014). Since LAW n ° 2017-203 of February 21, 2017, it is possible to change insurance every year: since March 1, 2017 for new contracts and from January 1, 2018 for all contracts.

Find the best loan insurance, it’s easy and free!

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