Times are changing, mentalities too. The time when our parents or grandparents especially did not want to go into debt and resort to bank loans is well and truly over. The evolution of lifestyles having changed behavior, the doors of different types of banking establishments are pushed more easily.
More accessible credit, longer loans
Over the past thirty years, bank loan rates have fallen by more than 10% over the long term, the long term having long referred to loans over ten years. Low rates make it more attractive for a potential buyer to borrow than to have to make a large contribution.
At the same time, the term of the loans has increased significantly. In fact, in less than a decade, the majority of the duration of loans has increased from 15 years to 25 years and it is not uncommon to see loan durations reaching 25 or 30 years, which was extremely rare. there is still little.
In other words, the fall in the cost of credit has thus paved the way for a massive extension of repayment terms. The low rates allow the lengthening of the loan duration, which allows the reduction of monthly repayments significantly. These mechanisms have helped to give access to credit to the greatest number.
Other causes of the credit boom
Since the Thirty Glorious Years, health has evolved at all levels, the average age and lifespan of the French has increased steadily and dramatically. The longer lifespan reassures financial organizations and a 58-year-old, for example, has much easier access to it than before.
We also note that the arrival of young people on the job market also occurs much later, which pushed the average age of the first acquisition of housing around 34 years. However, the various governments have regularly tried to support the construction industry, which is highly job creator, by granting aid or loans at zero rate, which are becoming cumulative with other incentives for first-time buyers.
The rise in strength of lending organizations, as well as online banking, is also a reason for the ease of access to loans and their democratization.
Rather than breaking an investment and having to bear the costs and taxes that flow from it, it is therefore better to study these different possibilities, in order to return to your apartment or house for the price of rent, while constituting your own patrimony!