Home Loan: Financing your project just got more complicated

According to broker Brito, 18% of files financed by banks in 2021 can no longer be financed in 2022. In the question, the erosion rate and the maximum debt ratio, are supposed to protect borrowers, who will eventually turn against them.

Are the rules intended to protect borrowers from turning against them? That’s what several brokers are saying, starting with Britto, who held a press conference on Tuesday, July 5 about families being excluded from mortgages.

By re-examining the files that we obtained with an agreement from the banks in 2021, we came to the following conclusion: 18% of files funded in 2021 will not be fundable In the context of the market in June 2022, Pierre Chabon, co-founder of Britto, analyzes.

220,000 files are likely to be rejected

Since January 1, 2022, the High Council for Financial Stability (HCSF) has required banks and borrowers to comply with two rules, previously only recommendations. From now on, with some exceptions, banks can no longer lend for more than 25 years, when borrowers cannot They do not get into debt for more than 35% of their income. It is clear that a couple who earn 4,000 euros cannot borrow more than 1,400 euros per month.

However, according to Britto, nearly 160,000 files funded in 2021 are no longer bankable in the state because they exceed the maximum debt ratio of 35%. However, the broker mitigates this assertion by stating that half of these can be financed today by adjusting the duration of the project or by increasing the personal contribution at the expense of the total cost of credit and the remaining savings available.

Mortgage credit: through a broker, more than a case of better rates

If HCSF rules are restrictive, today’s erosion rate is the maximum rate at which banks can extend credit, which is focusing the ire of brokers. In the 2021 files, Pretto ensures that Approximately 60,000 files can no longer be financed because they have exceeded the rate of erosion. For Pierre Chabon, the wear roof mechanically excludes the less rich profiles, shifting the average production towards the richer profiles. The average rates are then artificially lowered, which delays the increase in the rate of erosion and thus the access of all profiles to credit.

So Brito asks to review the calculation of the wear rate and usage as a basis for calculating the actual average monthly rates and not those observed during the quarter, but above all adding Fixed margin for 2 points This average. Today, the average price for a quarter is up by a third, which is considered largely insufficient for brokers.

Mortgage credit: Bank of France defends rate of erosion in the face of criticism

The broker concludes that these proposals will make it easier to access credit and neutralize some of the crowding out we’re seeing, without risking overheating the market.

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