Property loan: this proposal could change the lives of those who have taken a loan with a very low interest rate


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Using the money from the sale not to pay off the existing loan but to buy another house is a portability principle, a situation that could expand.

Capital Video: Property loan: this proposal could change the lives of those who took a loan with a very low rate


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– The member of the majority wants to generalize the transferability of real estate loans

Using the money from the sale not to pay off the existing loan but to buy another house is a portability principle, a situation that could expand. The rapid increase in lending rates from 2022 has slowed down many real estate projects. It was in this context that Damien Adam, a member of the majority, presented a bill aimed at generalizing the transferability of real estate loans, BFMTV reported on May 10. This measure could allow owners to finance the purchase of a new property by selling the old one. As of 2016, this practice has disappeared due to a drop in rates.

The bill proposes to generalize the transferability of real estate loans so that borrowers can take advantage of a more favorable rate when purchasing a new property. This measure aims to facilitate the real estate market and reduce costs for owners. The bill proposes in its only article, include in every real estate loan offer a clause stating that the borrower can, if he so wishes, maintain the terms of the loan provided in the event of the sale of the property in order to purchase a new one. The advantage of this system is to maintain better conditions than at present with rates currently at 4% compared to 1% two years ago. The text also allows “so that the seller-owner does not have to pay penalties for early repayment of the loan, which can be significant», Estimates Damien Adam in an explanatory note to the text.

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If the interest rate on your first loan is lower than the current rates on your new purchase, you’re bound to be a winner ; otherwise, simply do not use this option. Portability already exists, but requires a special clause in the loan agreement. However, with rates falling since 2016, many banks have stopped including this option, fearing that low-yield loans could cause them losses if rates rise.

Portability could therefore cause a smoother credit market that recovers slightly as rates fall. Beware, although home loan portability is beneficial for borrowers, it could lead to higher mortgage rates. Banks bearing the costs of raising capital could be forced to adjust their rates to maintain their profit margins.

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