Not necessarily a revolution, but good practices which are now in stone: here is what will change for the real estate loan in 2022. The new real estate credit rules were indeed published in the Official Journal of October 10, thus leading to their transition to legally binding standard. Banks that do not respect them will now risk being penalized. The detail.
In mid-September 2021, the High Council for Financial Stability (HCSF) chaired by Bruno Le Maire announced that its recommendations for real estate credit will be serious in stone. In other words, moving from the status of a simple recommendation to the status of a standard, legally binding for banks, with sanctions starting in 2022.
In short, to be in the nails, the files of the borrowers must respect two main rules: do not commit to overdue monthly credit payments 35% of your monthly income, and get into debt on 25 years maximum. Some exceptions, these two main principles remain, and banks will always be able to accept 20% of cases out of the blue, while seeking however to favor households which buy for the first time.
Real estate credit: everything that will change for you
The decision of September 29, 2021 relating to the conditions for granting real estate loans, issued by the HCSF, was published on October 10 at Official newspaper, definitively recording the inscription of these rules in stone. Then the HCSF drew up in mid-December a positive assessment of the current recommendation, thus confirming that it intends to advocate these new rules. The main principles mentioned above are confirmed, and the final text of the decision also made it possible to remove some ambiguities on the loan conditions from January 1, 2022.
27 years for new or for work
The maximum loan period – 25 years – is subject to an exception: a 2-year deferral is possible for any new or old project with extensive work. In short: it is not possible to sign a classic loan over 27 years but it is possible to commit to a real estate loan of 2 years + 25 years, i.e. 2 years during which you only repay part of your monthly chances, during the works, before switching to the more traditional 25-year credit.
The HCSF decision published in October at Official newspaper details precisely the files for which the banks can grant this loan over 2 + 25 years. First, the credits relate to a sale in the future state of completion (VEFA), within the framework of a construction of a individual house or as part of a property development contract. In short: a new real estate project. Second, a purchase in the old one with a work program the amount of which represents at least 25% of the total cost of the operation.
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Net income before tax
In view of the many testimonies collected by MoneyVox, some banks are zealous and claim a debt ratio of 35% maximum after tax, in other words the net pay in euros at the bottom of the payslip. Nothing prevents them from being exacting towards their candidates for the loan … but the argument based on the income 35% after tax at the source does not hold!
The HCSF decision published in Official newspaper leaves no room for ambiguity on this point: as of January 1, 2022, the annual income to take into account to calculate the 35% debt ratio correspond well to the borrower’s net income before tax (or the sum of the net income before tax of the co-borrowers, as the case may be).
Mortgage loan: should the debt ratio of 35% be calculated before or after tax?
The specific case of land income
The HCSF’s decision specifies, for income from land, for example from the rental of an apartment, that the income to be taken into account is the gross income before deduction of any tax allowances and charges, including interest on loans and insurance. borrower. The High Council adds that banks must apply discounts to reflect rental risk, and that annual income can be increased by tax reductions on rental investment (Pinel, etc.).
The HCSF decision officially enters into force on January 1, 2022. Banks cannot be penalized until that date, but in fact the rules listed above apply from now on. What really changes in January 2022 is that banks will have to be even more vigilant than before on compliance with these conditions, in order to avoid fines or sanctions.
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