60% of buyers forced to delay their purchase due to finance problems.
According to a new survey conducted by the PAP group, who specialise in property listings between individuals, 83% of respondents said they had encountered difficulties in financing their real estate project. Worse still, 60.5% of would be buyers were forced to postpone their plans because of problems getting a loan. All this in the context of decline in prices, even in Paris and the lowest interest rates, 3.13% on average, seen in France since 1945.
Stable income and personal contribution needed
Real estate projects are stalled for two main reasons: in one third of cases, buyers do not have enough income and the other third of cases, they did not have enough deposit. “The employment situation is not stable (temporary employment or self-employed with variable levels of activity and income …) for 14.5% and the absence of a guarantor to cosign the loan was causing the blockage for 5.5% of the respondents, “said PAP.
Borrowers staying loyal to their bank
To find a mortgage, buyers are staying loyal to their bank, 73% of respondents would only consider their bank. Only 11.5% went to another bank, and 15.5% a broker. Note that 42.5% of respondents went to either a bank or a broker), but ” 34% of respondents had contact with 2 or 3 other agencies. The number of agencies increased to 4 or 5 for 10.5% of the survey population and to 6 or more organizations for 13% of the people who responded, “says PAP.