French banks are trying to take over the distribution of real estate mortgages from brokers, which represents more than 35% of the production of home loans in January 2020.
According to the French lenders, brokerage intermediation would cost banks too much in the current low interest rate environment. While some lenders outright denounced the agreements with several brokers at the end of 2019, others preferred to renegotiate them downwards.
While working in the client’s interest, brokers have an attractive offer by selecting files and automating complex tasks in order to increase productivity gains and bank efficiency.
Brokers intend to assert themselves as key partners and to deal with banks on an equal footing. With a worrying increase in the rate of loan refusals in recent months, brokerage professionals are calling for a relaxation of the rules on the distribution of credit, recalling the importance that real estate constitutes for an economic recovery plan.
Current mortgage rates for October 2020
| Fixed rate(1) | Term | Monthly repayment
for 10 000€ borrowed |
|---|---|---|
| 0.75% | 10 years / 120 months | 86.52€ |
| 1.00% | 15 years / 180 months | 59.85€ |
| 1.25% | 20 years / 240 months | 47.11€ |
| 2.15% | 25 years / 300 months | 43.12€ |
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
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