Home loan: who are the darlings of banks?
The Good Credit barometer on bank darlings in Q3 2015 shows that mortgage lending is becoming more “popular”. While last year at this time the CSP + was courted by the agencies, now a salary of $ 4,000 net per couple and a contribution of 10% is enough to obtain the most attractive rates.
And yet the rise in borrowing rates has indeed taken hold, with an average of 2.65% over 20 years. But as usual, certain profiles are pampered by the banks, and now it is primarily a question of households capable of saving.
The best profiles borrow less, but …
They are still suffering from rising rates
In January 2015, the banks initiated a policy of gradually lowering borrowing rates, until triggering the return of buyers to the real estate market. They are particularly keen on this because they seek to build customer loyalty over the long term. This clientele will consume savings products, insurance, use their credit card, and their children will probably open an account at the same agency.
The banks, therefore, continued this advantageous policy, until they were overwhelmed by mortgage loan requests. They then gradually began to raise their rates, intending to limit the flow but also repair their margins. But Sandrine Allonier, head of bank relations at Good Credit, tempers: “since May, credit rates have increased by 0.30 points, a return to their level in early 2015”.
So much so that even the darlings of banks are concerned today. While the 5th edition of May showed that the best borrowers had been able to obtain a rate of 1.75% in Grenoble or Lyon, now they have to “settle for” 1.95% in Bordeaux for the favorite among the favorites.
The personal contribution becomes less and less important
Already the Good Finance observatory put its finger on the flexibility of the banks when it photographed the real estate market in the 2nd quarter of 2015. It turns out that the level of personal contribution required to buy new real estate, decreases by -13.8% over 1 year, after having even dropped by -7% in 2014. A similar observation in the old where borrowers of the 2nd quarter needed to bring -12.2% less compared to their predecessors from last year.
Broker agencies affiliated with Good Credit and distributed throughout France, note that a personal contribution of 10% of the cost of the operation is now enough to charm a client advisor. What is important now is the income of prospective borrowers.
A rich couple with $ 4,000 net / month
If for average French an individual is considered wealthy as soon as he earns $ 6,500 / month, the average banker is more compromising. Sandrine Allonier concludes that “couples with incomes above $ 4,000 net per month at 2 and at least 10% contribution” is officially considered to be the darlings of banks.
This is equivalent to a declared annual income of $ 48,000 in a household. If we refer to the INSEE figures on the deciles of household disposable income, we realize that this level of resources concerns couples with 1 child, located between the 7th and 8th decile. We are tempted to deduce that almost 25% of these households are affected, but it remains to sort out on the shutter those who have a good savings capacity.
As Jérôme Robin, president and founder of Good Credit reminds us, the banks seek to “favor the best files, that is to say, those with which they can establish a real relationship in the long term: the high income that has savings prospects, but also and fortunately, first-time buyers for whom the entire banking relationship is to be built.
Where are the bank darlings located?
Those who were able to renegotiate their loan for much less
Banks love first-time homeowners. They have already repaid part of the capital borrowed, in general, they have also had time to build up savings, and if they have done all of this without ever missing a single monthly payment and without an overdraft, they are pampered. However, Sandrine Allonier recalls that the rise in borrowing rates that occurred in July brought the number of files processed from 50% to 25%.
The fact remains that this clientele is still attractive to banks, like this couple from Bordeaux who was able to renegotiate their mortgage at 1.95% over 20 years. With 4200 $ per month, they are indeed among the best profiles.
Just behind them in the ranking comes this couple from Grenoble and their child. On the other hand, they are below the canon of beauty as considered by the banks, with $ 3,900 per month of income between them 2. This did not prevent the local agency of Good Credit from renegotiating $ 192,500 from 2% property debt over 20 years.