Bercy and the Banque de France want to revive the market with “adjustments” concerning credits

Objective: to revitalize a moribund market. The Ministry of the Economy and the Bank of France marginally adjusted the rules governing real estate credit on Monday, December 4. The two administrations also call for a careful examination of the banks’ refusals in this area.

“I proposed three technical adjustments” on the occasion of the quarterly meeting of the High Financial Stability Council (HCSF) held Monday morning, the governor of the Bank of France, François Villeroy de Galhau, explained to AFP. Adjustments “reasonable” he promises: “none risks putting households in a situation of over-indebtedness”.

The maximum borrowing period extended

Among the three adjustments decided on Monday, banks will be able to waive the maximum limit of the loan duration to go up to 27 years, if planned work represents 10% of the total amount of the operation.

The HCSF also decided “to authorize credit institutions to exclude the interest charge associated with bridging loans” in the calculation of the effort rate. However, the amount of the bridging loan must not exceed 80% of the value of the property sold.

Finally, banks will have more flexibility to deploy their quota of exceptions. They may occasionally exceed the 20% limit over a quarter if they fall below this threshold by counting the following two quarters.