This beginning of the year begins in an exceptionally favorable context for the candidates for the loan. Since the fall in the key rate of the ECB in 2016, mortgage rates have never been lower. YB Loan manages to negotiate a mortgage at fixed rate excluding insurance at 0.20% over 7 years. There are real opportunities to seize since banks have just announced rate cuts in the range of – 0.10 to – 0.25 pts. Given the surge in real estate prices per sq. M, this drop in rates allows the most modest households to access home loans over a long period.
The banks have the same commercial objectives as in 2018. With a lot of competition, they only have the mortgage to attract new customers. For this, some banks break rates. And, the lower the rate, the more the banks are certain to keep the customer for a long time. Indeed, it is unlikely that with such low rates, the borrower will be able to renegotiate its credit with the competition, as was the case between 2014 and 2016.
The question is at the center of the debate. Since 2016, the ECB rate has remained unchanged at 0%. The latter wants to keep its key rates at the same level “at least until the summer of 2019”. In addition, the interest rate on financial markets (10-year OAT), used as a benchmark for fixed rates on real estate loans, stands at 0.55% as of March 1, 2019. On these bases, it is clear that the rates loans will remain low in 2019, except for external events in France or Europe. YB Loan favors a low interest rate scenario until 2020.
For a loan of € 100,000 over a period of 15 years, a rate cut of – 0.25 pts represents a saving of € 1973 only on the cost of interest is a saving of € 11 / month on its monthly mortgage credit . For a client aged under 35, this sum (€ 11) represents the monthly cost of a borrower insurance contribution. Added to this is the feasible savings on the cost of loan insurance, and banking fees. With a delegation of insurance taken out with a broker, the client saves 3127 euros on the cost of his credit insurance.
In the end, the customer earns 5100 Euros on the total cost of his credit with exemption from the fees and the absence of brokerage fees, for individuals, through YB Loan.