Real estate: good news for borrowers, banks require less personal contribution

On the new real estate market, as on the old one, the rate of personal contribution requested by banks to grant loans has decreased in the space of a year. Here are which categories of borrowers benefit the most from this relaxation.

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Having a personal contribution representing at least 10% of the total amount borrowed: this is one of the conditions usually encouraging banks to grant you a “good” loan rate. real estate loan. Finally, 10% was before the quadrupling of rates that occurred between the beginning of 2022 and the end of 2023, which complicated the financing of property buyers and led banks to require more personal contribution. A real obstacle for first-time buyers, aged on average 37 years and who generally have littlesavings. But, good news, “the rate of personal contribution requested fell in 2024”indicates Michel Mouillart, professor of economics and member of the Crédit Logement/CSA observatory.

In the new housing market, the personal contribution rate was reduced from 18.1% in the fourth quarter of 2023 to 16.6% over the last three months of 2024, a drop of 1.5 points, according to the data of the observatory published on January 21. Consequence, “of the younger householdsless well-off and first-time buyers can often more easily enter the real estate loan market”notes Michel Mouillart. Who sees in this reduction in the rate of personal contribution “the desire of banks to revitalize a damaged (credit) sector” by two and a half years of real estate crisis.

Personal contribution rates still well above 2019 levels

Thus, 57.1% of real estate borrowers were aged under 35 in 2024, compared to only 51.5% in 2022, when rates began their rapid rise. And so-called modest households, earning less than 3 SMIC, represented 47.1% of borrowers last year, versus 41.1% in 2023. The relaxation of the requirements of the High Financial Stability Council (HSCF) in terms of granting of real estate credit, particularly in favor of first-time buyers, “contributed a little to that”recognizes Michel Mouillart. But, “especially, since the start of 2024, the rates ofpersonal contributionwhich had reached particularly high levels, began to relax”he insists.

In fact, on the existing housing market, the personal contribution rate has fallen by two points in the space of a year, to 20.7% in the fourth quarter of 2024. “As in new, the share of under 35 years old in the total number of borrowers recovered and the same was true for the share of those earning less than 3 minimum wage”notes the observatory. The fact remains that the average personal contribution rate still shows a jump of 45.8% compared to 2019 on the old property market, and 19.4% on the new property market.