Immovable. There have never been so many real estate advertisements republished for ten years!

Several brokers have been sounding the alarm for several months in the face of the increase in loan refusals. In October, for example, nearly 30% of loan applications through the broker Meilleurtaux were rejected by the banks, because the debt ratio of borrowers exceeded 39%.

According to a study by the PAP.fr site, a portal for real estate advertisements between individuals, nearly one out of 10 sales agreements does not result in a definitive sale. Some borrowers need to change their property search criteria. Others plan to pay cash for their real estate purchase.

Ads republished due to cancellation of sales agreement

In November 2022, the rate of real estate advertisements republished* on PAP.fr stood at 9.4%, compared to 4.6% six months earlier and 1.8% in November 2021. A stable indicator over the last 10 years, traditionally between 1 and 2%. “The owners concerned indicate that if their sale did not succeed, it is because of a refusal of loan from their buyer”, notes the PAP.fr. According to the real estate portal, 9.8% of buyers have recently been refused a loan.

The wear rate, the main sticking point

Among the reasons that led to a loan refusal, the buyers concerned mainly cited a problem with the wear rate for 62.1% of them. The other reasons come far behind: too high a debt ratio (for 30.5%), a problematic professional situation (for 21.7%) and insufficient personal contribution (for 20.2%).

Another reason: the energy performance diagnosis (EPD) of properties, to which banks pay more and more attention, was an obstacle in 3.3% of cases.

All borrower profiles are affected

Loan refusals affect all types of professional profiles, including those who might seem to escape it, like private sector employees on permanent contracts who represent just over one in two cases.

All age groups are affected, with a peak of 32% among 40-49 year olds. And it’s not just first-time buyers, as they only represent 37.1% of cases.

Nearly one in two buyers have changed their search criteria following a loan refusal

Loan refusals led 52.2% of buyers to modify their search criteria, either by widening the geographical area to find a cheaper area, or by opting for a smaller property. As for the rest of the buyers (47.8%), they are betting on a drop in prices…

The issue of financing, a concern for all buyers

Financing concerns all buyers, even those who have not been confronted with a loan refusal, since 60.4% of buyers indicate that they are worried about this subject. In all, 92% of buyers expect interest rates to rise in the coming months.

As a result, 33.4% are considering a cash purchase, without having recourse to a mortgage. A strategy implemented in particular by retirees (58.1%) who have been able to save and who know they are excluded from credit.