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Real estate loan: soon 27-year loans
More and more households are having difficulty obtaining a mortgage loan. Relaxation measures have been announced, and among them a credit repayable over 27 years compared to 25 currently. – (Franceinfo)
More and more households are struggling to obtain a mortgage loan. Relaxation measures have been announced, and among them a credit repayable over 27 years compared to 25 currently.
If there are “For Sale” signs, you still need to have the means to borrow. Today, the duration of a loan is 25 years maximum. It will now be possible to go up to 27 years in certain cases. In Paris, this thirty-year-old is stuck, he cannot borrow. It narrowly exceeds the maximum debt ratio: “I was at rock bottom, my first feeling was to say to myself, ‘I don’t know what I’m going to do, am I going to go and knock at another bank?’”
Not everyone will be able to benefit from it
If he borrows over 25 years, 935 euros monthly payment. Over 27 years, it’s 901 euros, it would then be on track, and it would not exceed 35% debt. “Concretely, 30 euros less has an impact on debt. Sometimes, this can be down to 1%”, explains a broker. The measure will be effective in a few days. However, not everyone will be able to benefit from it. Bercy has set a rule: at least 10% of the loan must finance renovation work.
