Changes in mortgage financing | New banking section

If you remember the first steps of this real estate blog, you will remember that our mission has always been to make your day-to-day real estate agent easier. In fulfilling this mission, we continuously seek new content to help you in your relationships with customers. That is why today we want to go one step further, inaugurating a new section that many of our readers asked us strongly.

In it you will find articles related to the financial aspects that affect your work, such as mortgages or in Faisal Hills situation. We started this section with a review of the main changes in mortgage financing in recent months.

What has changed in mortgages

When the recovery of the real estate market as seen in the increased rates of property for sale in Islamabad is already a fact, banks shyly begin to grant credit after almost a decade of drought. However, the economic situation is not the same and it shows in the quantity and quality of the mortgage loan.

The most attractive mortgages to date have the characteristic of offering a low link with the financial institution and a really attractive interest, which ranges between 1.83% and 2.92%, conditions far removed from those we saw in our blog in January of this year. As a novelty in many months, the vast majority ask for income over € 1,500 and the contracting of life and home insurance.

We also want to point out that many banks have decided to offer mortgages again for the total amount of sales transactions. While they are not available to everyone, exist, exist.

How is the new mortgaged

The return of the mortgage loan has led to a new type of mortgaging very different from the young man with little income before the crisis. In the case of 100% mortgages plus expenses, the bank looks for officials who have left the crisis without debt, with work and some savings.

In addition, professionals hired by solvent companies that have managed to keep their work and who currently present solvent income are also sought. Banks ensure this circumstance by investigating the company they hire as well as requiring the employee to take several years and have an indefinite contract.

And what about the freelancers? For banking, and therefore for mortgages, self-employed workers remain unreliable and these types of mortgages are out of reach, although it may not be for a long time.

In the words of Luis Javaloyes, general director of the Negotiating Agency, “We are observing a progressive relaxation in the criteria for granting mortgages and we will go further. In a very short time, the bank has gone from granting 80% financing demanding that the client get involved in the operation providing savings. Now we are seeing 100% operations on the purchase price and with the requirement to provide additional guarantees. It is no longer necessary for the client to contribute his savings, but his parents’ house, for example. And, shortly, we will see these mortgages 100% again without the need for guarantees ».

What you must communicate to convey confidence

This undoubted good news for our sector will be the key to many of the operations you carry out daily. If customers know that banks are beginning to grant credit, they may be encouraged to buy that home that a few years ago did not even consider.

However, do not forget to recommend to your clients that they look for the best possible circumstances, comparing conditions and degrees of bonding, especially if they want to make a change in their current circumstances or if they depend on the sale of another home.

In summary

The return of credit for families is always good news, there is no doubt. To the relaxation of the banking conditions we must add an excellent situation for the maximum mortgage indicative, the Euribor . However, the next electoral appointments and the geopolitical conflicts of which our country is not exempt, will set the pattern of the evolution of mortgages in the coming months.