Home loan: summer period for credit rates!On January 21, 2020 by Rosalia Hampton
The trend for low interest rates continues in July! Borrowing terms over 20 years and 25 years are now reaching historic records Indeed, according to our barometer of real estate rates, it is possible to borrow at 0.93% over 20 years and at 1.10% over 25 years. Our spokesperson recalls that “in the fall of 2016, when we announced the historic floors reached, the minimum rates displayed were 1.08% over 20 years and 1.25% over 30 years”. It is therefore under exceptional conditions that borrowers can finance their real estate project at the best rate.
According to our barometer, we see several moving mortgage rates:
- 4 mini real estate rates down: the loan rates over 15, 20, 25 and 30 years which decrease from 3 to 10 cents.
- 4 average real estate rates down: the credit rates over 10, 15, 20 and 25 years with decreases of between 5 and 10 cents.
Loan rates continue to fall
On all the scales received from our partners, no increase is noted: some stabilize and others continue to present decreases of up to 20 cents in order to align with the current market. Thus, specifies our Broker, “despite the response times which have continued to grow since April, the negotiation margins remain significant: increase in credit terms and discounts depending on the profile (age, income , profession …). Besides, the best profiles are no longer the only ones who can benefit from advantages. Indeed, on the market rate side, it is possible to borrow at 1.25% over 20 years, a decrease of 10 cents compared to last month. Never seen ” !
What future for mortgage rates?
According to our Consulting Broker, “we cannot predict the future of mortgage lending rates but as long as the ECB continues its policy and the banks are fighting hard, we can assume that mortgage lending rates can continue to evolve in this positive dynamic ”.