20 years of the “Silver World”
Remember: at the dawn of the 2000s, real estate was not considered an El Dorado by all households. The reason ? Despite relatively affordable prices, it was not accessible to all budgets. To become an owner, you had to consult your bank advisor, who had the last word on the feasibility of the project. At the time, all credit institutions required prior savings to study the files of borrowers, to whom they lent in the medium term at rates exceeding 6%.
The only alternative, known to a few insiders, was to go through a specialized broker. ” We took care of more complicated cases, those of business leaders for example, and found banks that distributed specific loans, such as “in fine” », Remembers Philippe Taboret, Deputy Managing Director of Cafpi.
Access to information
The arrival of the Internet in the early 2000s has shaken up this very peaceful landscape. New e-brokers, Meilleurtaux in the lead, have launched online, and more traditional players have followed suit and in turn opened their sites. This broad impetus caused a change in mentalities, because it allowed borrowers to gain access to information. In a few clicks, they obtained an estimate of the borrowing amount and the monthly payment of their future loan.
Online brokers have also contributed to general awareness, by proving that the rate offered by banks to their “captive” clients was often higher than that of their competitors. Borrowers no longer hesitated to leave their establishment to find cheaper loans and achieve the supreme Grail: home ownership.
Between 2002 and 2005, boosted by the drop in loan rates, which dropped below 5%, tenants bought after realizing that a monthly loan payment barely exceeded one month’s rent. First-time buyers, who were not considering any real estate project, have taken the plunge and discredited borrower profiles have found financing solutions. New customers then flooded in and the mortgage market took off.
A little distraught by the huge household loan outstandings, the Banque de France demanded that banks stop distributing loans so easily
To avoid seeing their best customers escape them, the banks have made the mortgage a product of conquest. To finance more and more borrowers, they agreed to review their conditions.
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