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Real estate: the government plans to extend the maximum duration of loans
The government will present on Monday, December 4, a series of measures to reform borrowing criteria in the real estate sector. Among the measures envisaged, the maximum duration of loans could increase from 25 to 27 years. – (Franceinfo)
The government will present on Monday, December 4, a series of measures to reform borrowing criteria in the real estate sector. Among the measures envisaged, the maximum duration of loans could increase from 25 to 27 years.
Rates for real estate loans continue to rise, in a seized up market where it is increasingly difficult to borrow. Among the government’s proposals, there is an increase in the maximum duration of loans, currently set at 25 years. It could increase to 27 years, provided that renovation work begins. French people met at a market in Antibes (Alpes-Maritimes) are divided.
A possible relaxation of the conditions of the bridging loan
Concretely, for example, a couple who wishes to borrow 300,000 euros would see their monthly payment drop from 1,667 euros today to 1,601 euros over 27 years. A reduction which makes it possible to meet the debt criteria. Another avenue considered by Bercy: relaxing the conditions of bridging loan, this loan necessary to buy a new property before having sold yours. It would no longer necessarily be taken into account in the calculation of debt. These measures will be presented on Monday, December 4, during an official meeting on borrowing criteria. But it is the Banque de France which will have the last word, particularly vigilant to household over-indebtedness.
