Real estate credit: the governor of the Banque de France opposes a change in credit conditions

Real estate credit: the governor of the Banque de France opposes a change in credit conditions

The main principles are as follows: banks do not have the right to sign a real estate loan if the total amount of the borrower’s housing costs exceeds 35% of their income (effort rate), nor for a period longer than 25 years. unless the work represents 10% of the total amount of the operation. These terminals can be bypassed in 20% of cases, provided that they are mainly main residences and in almost a third of cases they are first-time buyers.

“Not the subject”

“We had introduced common sense criteria to prevent over-indebtedness of households, so that people who take on a real estate project can be confident that they can repay it. Last year we relaxed them a bit and we call this the HCSF criteria,” the governor said on Europe 1 on Friday evening.

“I say that because they have sometimes been criticized, including recently. I think this is actually no longer an issue, because there is a maximum flexibility of 20% to deviate from these criteria. It is only partially used, it is 15% used,” he continued. “I sometimes hear that we should question the HCSF or these criteria. That is really selling illusions, because that is in no way the subject,” says François Villeroy de Galhau.

Effort percentage

This position of the governor goes against Bercy, who spoke in favor of a bill submitted by majority representative Lionel Causse, among others. The primary aim of this is “to change the composition of the High Council for Financial Stability in order to include a deputy and a senator”, we can read on the website of the National Assembly.

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