No more real estate loans over 30 or even 35 years. The few banks to offer this loan over such a long period will no longer be able to do so from January 1. The law will now prohibit individuals from borrowing over 25 years to buy real estate. This rule has been recommended since 2019 by the High Council for Financial Stability (HCSF).
There will be some exceptions if the purchase concerns a new home under construction or if the work represents 25% of the total cost of the operation.
Debt ratio limited to 35%
The debt ratio will also be limited and cannot exceed 35% of annual income. The objective of these measures remains not to weaken the financial capacities of the French.
“We were led to take measures on what was the risk for borrowers” with “loans that are too long” and effort rates above 35%, had justified in September François Villeroy de Galhau, Governor of the Banque de France.