The Ministry of the Economy and the Banque de France have adjusted the rules governing mortgages to revitalize a market in freefall. Apart from these three technical adjustments, the fundamental principles remain unchanged. Banks are still not allowed to grant mortgages if the borrower's total housing-related expenditure exceeds 35% of their income (the so-called "effort ratio"), nor for terms of more than 25 years. Apart from these restrictions :
- the loan term is extended to 27 years in the case of major works: one of the new measures allows banks to waive the maximum loan term of 25 years. They will be able to grant home loans of up to 27 years if borrowers undertake work representing at least 10% of the total cost of the transaction. This offers potential buyers the opportunity to spread their repayments over a slightly longer period when investing in major renovation projects, which can help make property purchases more affordable in the short term.
- the method of calculating the "effort rate" has been modified. From now on, banks are authorized to exclude the interest burden associated with bridging loans when assessing the borrower's "effort factor". However, it is essential to note that the amount of the bridging loan must not exceed 80% of the value of the property sold. This can be beneficial for people buying a new property before selling their current home, as it reduces the financial burden at the time of purchase.
- banks have greater leeway regarding exceptions. They will be able to momentarily exceed the 20% threshold for exceptions in a given quarter, provided they comply with the rule in subsequent quarters. This increased flexibility will enable banks to better meet borrowers' needs, by adapting conditions to the economic context and real estate market demands.