Real estate loan application: why you have to be patient

Summer period and conjuncture of (extremely) low rates oblige, the delays of treatment of the files of request for mortgage loan become longer. Do not hesitate to include this additional time if you sign a sales agreement.

 

Borrowing rates

This is no longer a scoop: the borrowing rates for a property purchase are at their lowest! According to the Cream Credit observatory, in July, the average rate fell below the symbolic bar of 1% for loans over 15 years, at 0.96%. Over 20 years, borrowers get an average fixed rate of 1.14%, and 1.37% over 25 years. Conditions that have never been so favorable to borrow!

Who says low rate, says borrowers in number in banks. Certainly, they do not see an influx of renegotiation files, as was the case in 2015 and in 2016-2017. The bottleneck is not comparable to that of the end of 2016, when economists announced a possible rate rebound. However, the production of new real estate loans remains very high, and this can be seen in the processing times, in this summer period, synonymous with annual leave. in credit institutions: Some have indicated that they will not rule on new cases until the start of the year, says Arwind Landcode, founding president of Cream Credit.

 

Up to a month for a response

The broker Cream Credit confirms, in his letter of the month of August: Attention to the processing times, count up to a month for a response! The online broker Good Lenders is a little less alarmist, evoking an additional delay of 12 days during the summer.

Esmael Bernier, communications director of Good Lenders, sees this as the only downside of the current period, which is also extremely favorable to borrowers: The banks are completely saturated, What is more, with the period of leave synonymous with limited teams, the processing of files, therefore, takes a long time and the processing times are lengthening enormously. We can only advise you too much to consider a date of signature of the authentic deed at 3 and a half months or even 4 instead of the classic 3 months, because this will allow you to build your loan file without stress by staying Zen.

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