how to facilitate household access to mortgage

The European Central Bank recognizes that in the first quarter, the conditions for granting loans by commercial banks have strengthened to a level not seen since 2011. At issue: the rise in interest rates, the caution of banks in this period of economic uncertainty, but also the rules governing these famous mortgage loans.

Banks can lend to households on one condition: that the “cost ratio” – that is to say the total amount of housing-related expenses in relation to household income – does not exceed 35%, for a commitment of at least 25 years. Banks can derogate from this rule for 20% of loans if they are intended for the purchase of a main residence or to support first-time buyers. Can this 20% threshold be widened? Will the banks be able to go further and grant more loans to households wishing to invest? These are questions that will be addressed this afternoon by the Minister of the Economy and the Governor of the Banque de France, the guardian of the temple.

Review the rate of wear?

This is the maximum debt ratio at which banks can lend to households. The wear rate includes all costs including borrower insurance and account management. If the banks exceed this usury rate (located today between 3.9 and 4.5%), they are sanctioned.

Intended to protect individuals to avoid over-indebtedness, this measure is accused by its detractors of preventing banks from lending during periods of rising interest rates, which is the case at the moment. This rate of wear is recalculated every month according to the economic context. But, there again, can we review the situation?