What if Luxembourg residents took a leaf out of the book of other European countries such as France or Great Britain, leaders in the brokerage market?
The property market is going through an unprecedented crisis in the Grand Duchy. The abrupt rise in interest rates is one of the reasons for the slump. Turning to a broker can therefore prove invaluable. The practice is well known to some of our fellow Europeans, particularly the French and the British, who long ago grasped the value of being guided in the search for financing…
Even though the central bank recorded an appreciable fall in rates over the summer, they remain high — far higher than over the past 5 years. Borrowing has in some cases become an obstacle course for those wishing to buy a home. At the same time, while property prices have in most cases fallen in recent months, after years of increases, they remain among the highest in Europe.
The way to make credit easier to obtain: use a broker
Owners who are under no obligation to sell, and who know that supply remains structurally below demand, are waiting for better days and not lowering their prices…. So you should not count solely on a hypothetical fall in prices to see your project come to fruition.
There is in fact another way to carry out your project without waiting:
Being guided by an intermediary specialising in property finance. In other words, a broker. A thorough judge of the market and in constant contact with the banks, they negotiate the most advantageous rate on your behalf by putting their financial partners in competition, and support you personally from start to finish. For you that means savings, but also time gained, since you do not have to approach the banks one after another.
Despite these advantages, Luxembourg households remain more reticent than their European neighbours and still hesitate to use a broker.
A survey (*) carried out very recently in France shows that the situation across the border is very different. As elsewhere, private individuals admit they are not experts: thus, “64% of 25- to 65-year-olds say they have poor knowledge of property finance”. That said, they are aware that this is a complicated time to invest: “66% state that the current context is not really conducive to buying a property.” Something confirmed by those who nonetheless managed to complete their purchase: “78% of recent buyers state that the current conditions for obtaining a mortgage have become more complex.”
To save time… and money
Such a survey, with such questions, carried out in the Grand Duchy would doubtless produce comparable figures. The French, on the other hand, do not turn down the hand brokers extend. Indeed, “84% have already heard of them” and “54% know exactly what they do”. Hardly surprising, since 28% of respondents have already used their services, and in any case “71% have a good impression of mortgage brokers”. A flattering image that owes nothing to chance. In France, education has done its work, above all through the best advertising of all: word of mouth. Whether or not they have used their services, a large majority of private individuals in France (from 81% to 66%) have understood that brokers “save time, provide expert support and save money” and are therefore “essential in the current economic climate for obtaining property financing”. The bottom line: “80% consider a broker’s help necessary and 20% even indispensable.”
Don’t hesitate any longer… Brokers are there to help you see your project through.
Contact LuxKredit and obtain your financing on the best terms!
(*) IFOP survey of June 2023 among 1,302 people, 30% of whom say they have at least one property purchase planned within two years.
