Real estate purchase: the solution to avoid the hassle of bridging loans

When taking out a bridging loan, the household takes the risk of not being able to sell its property within the time set by the bank. The Homeloop company has found the solution to secure the operation.

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On paper, the product is attractive. To quickly get their hands on a second property, some households opt for a bridging loan. A setup that looks like a giant authorized overdraft, to become a new owner without waiting for the sale of the first property. Finally, if the sale goes through… Because in addition to being more expensive – “generally between 0.3 and 0.4 points above the average rates for traditional real estate loans”according to Maël Bernier, spokesperson for the broker Meilleurtaux -, bridging loans carry a significant risk: that of not being able to get rid of your first property within the allotted time.

The latter is generally set at 12 months, renewable once, for a total of two years. If this catastrophic scenario occurs – this is the danger in certain regions where demand for housing is low, or if renovation work must be carried out – the household simply risks repaying a double monthly loan payment. An untenable situation for most owners.

Sales in just 3 months

Since 2016, the Homeloop company has therefore offered a solution to prevent such a scenario: instant purchasing; or “iBuying”.“We buy on our own funds, without suspensive conditions and without withdrawal period”summarizes Florence Matheossian, head of communications for the company. The advantage for the seller is obvious: by transferring his property to a specialized agency and not to an individual, he ensures a transaction as quickly as possible. Around 2,000 individuals use their services each month.

As no credit is mobilized, the fastest sales – between the first estimate and the disbursement of funds at the notary – take three months. And once the offer is accepted, the agency cannot go back and withdraw, nor can it contest the sale for hidden defects. The household thus receives the proceeds of its sale without fail. “Owners buy the peace of mind of having a quickly and clearly defined budget”summarizes Florence Matheossian. Except in certain medium and small municipalities where the parties must respect an additional pre-emption period of two months.

15% fee on sale

A guarantee of “serenity”, but with a cost for the individual: their apartment will be sold at around 85% of its market value so that the company generates a margin on the operation but not only: “We charge fees, like any agency, which amount to around 15% of the sale, because we take the risk of not reselling the property immediately, we buy quickly and cover all the costs inherent to the accommodation”, specifies Homeloop. Among these additional charges is, for example, property tax.

A good vein for Homeloop, created in 2016. After being threatened with disappearance, the company has been reborn from its ashes since September 2022, the date of its purchase by the Benedic real estate agency at the commercial court. The workforce has almost tripled – from 15 to 40 employees – as has its location – from 6 to 15 cities covered.