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Real Estate

Mortgage credit: loans over 27 years under certain conditions

Publié le 27 décembre 2023 - Directorate for Legal and Administrative Information (Prime Minister)

The High Financial Stability Board (HCSF) has decided to extend the borrowing period from 25 to 27 years. Service-Public.fr specifies the conditions for taking advantage of it.

Image 1Crédits: crizzystudio - stock.adobe.com

It is now possible to borrow for 27 years, if 10% of the total amount of the loan is earmarked for works. It used to be 25 years. It was a decision of December 18, 2023, by the Financial Stability Board. This decision was published in Official Journal of 24 December 2023.

A 27-year loan is conditional: at least 10% of the total amount of the loan must be dedicated to renovation works on the property. This work may involve modernization, reclamation, fitting-out or energy renovation.

Prior to this decision, a 27-year loan was granted if the works represented at least 25% of the loan amount.

Reminder

The HSCF advocates a debt ratio that does not exceed 35% of a household’s monthly income, including mortgage insurance. For a household with a monthly income of €3,000, this represents for example €1,050 per month.

Bridge credits are excluded from the effort rate of 35% of revenue, if they do not represent more than 80% of the value of the sale.