Requests for financing increased by + 30% at certain banks. This renewed activity has two explanations: the steady decline in borrowing rates since 2014, which stimulated demand for loan buy-backs and the recovery of the acquisition market, which regained strength in 2015, boosted by of State.
Waiting times too long
The demand is such that banks take more than a week to provide a response in principle on the records even a dozen days when they only needed 48 hours a few months ago. In normal times, it takes 60 days between the simulation of a home loan and the provision of funds. Today, this period is extended by at least fifteen days.
The banks are submerged and the activity is so intense that the management of the files in progress becomes problematic due to the delays that accumulate. It has become a real obstacle course to obtain a mortgage and buyers are bound by the deadline of the promise of sale.
Usually, a minimum period of 45 days is recommended for obtaining a mortgage, but the extension of the deadlines jeopardizes the compromises of sale. The Duchess advises customers to negotiate additional time by extending it from two to three weeks … a security to avoid possible setbacks.
Many banks are now selective about profiles to regulate
To find their way around, banks now prioritize the files to be processed based on the end date of the promise to sell and move loan redemption records last. Banks have been charging low rates since 2014 in an effort to motivate potential buyers, so the deal may change.
Many banks are becoming increasingly selective about profiles to regulate the flow of files. They do not hesitate to increase the rates according to the income or the contribution of the customers. Moreover, as summer leave approaches, it is not surprising that banks are raising rates . This limits the activity in times of staff shortage. However, we must moderate this increase, which remains minimal. Banks do not intend to stop the real estate market, which is an important lever for attracting new customers. Rest assured the rates will stay low until the end of the year … but do not wait too long!