How the average amount of mortgages influences borrowers?

2022-05-16 01:26:16

 Increase in average amounts borrowed

The amount of real estate loans granted by financial institutions has only increased in recent years.  This is actually contingent on the increase in real estate prices on the market.  A recent study shows the average price of mortgages granted by these institutions in recent years is €100,345 with an increase of 7% compared to last year.  It should be noted that this progression is largely influenced by the increase in the number of home loan applicants who already own a property and who have higher incomes.  So in reality, the average amount of mortgages for those who have a low income and are not necessarily homeowners is only 2.5% for one year.

An increase in the loan term

The duration of the loan of real estate loans have only increased in recent days due to the reduction in the rate of real estate loans.  Indeed, the purchasers of this decrease to voluntarily increase the period of loan repayment.  Today, real estate loans are drawn up on average over a period of 20.2 years, which is an increase of 15 months compared to last year.  This is also explained by the large number of borrowers who are already owners and whose income has also evolved.

A stable rate of effort

The increase in the amount of the loan largely creates an increase in the rate of effort.  Indeed, this increase is mainly influenced by high-income borrowers who are already homeowners.

A sharp rise in the debt ratio

The increase in the average mortgage amount followed by the decrease in income leads to an increase in the rate of indebtedness.  This increase has further worsened with the arrival of Covid-19.  Consequently, a study reveals that from 2010 to 2019, the overall debt ratio of this sector increased from 138% to 152%, with the corporate debt ratio reaching a historic level of 91% of GDP.
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How the average amount of mortgages influences borrowers?

How the average amount of mortgages influences borrowers?

A loan is a capital allocated from a bank or a financial institution, contracted over a long or short period and which is used to finance a set of projects (the purchase of an apartment, the purchase of a car , or to meet a personal need).