Real estate credit: banks are demanding an ever higher contribution

The contribution required to obtain a mortgage increased “dramatically” last year, according to L’Observatoire Crédit Logement / CSA. Banks were claiming 16.4% of the total loan amount at the end of last year, up from 13.7% in 2020.

The share of modest borrowers in banking customers rose from 40% in 2018 to 36% in 2020, estimates the observatory.

The effects of the crisis are starting to be felt in the mortgage market. In its latest observatory, published Tuesday, Crédit Logement / CSA observed a real drop-out of the most modest households. The latter fail to follow the conditions set by the banks, which demand higher personal contributions. For reasons both prudential, but also to stay in the nails of the recommendations formulated by the High council of financial stability (HCSF).

According to this quarterly study, the contribution required to obtain a loan indeed increased by 10.2% in 2020, while it had fallen by 4.9% and 5% the two previous years. ” It’s a spectacular development »Judge Michel Mouillard, the observatory’s publication manager. Concretely, in the 4th quarter of 2020, the personal contribution of a household had to cover 16.4% of the total amount of the loan for it to be validated, against 13.7% a year earlier.

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