The Minister of the Economy Bruno Le Maire pleaded for a relaxation of the conditions for granting real estate loans, in an interview with Le Parisien posted online on Saturday evening, two days before a meeting of the High Financial Stability Council (HCSF) scheduled for Monday . “Yes”, the borrowing conditions must be further modified, said the minister. “We will study new measures to further relax the conditions for granting credits,” he said.
“I also want us to put in place an amicable procedure, between the borrower and the banker, when the latter refuses a property loan. This procedure should help to understand why the loan was refused and possibly, if the borrower's situation allows it, lead to a review of the decision,” indicated Bruno Le Maire. Real estate credit is a sensitive subject in the current context of inflation, which complicates access to the real estate market for many households.
The rules for granting real estate loans, in particular their duration and their weight in relation to the income of borrowers, are reviewed every quarter by the High Financial Stability Council, a body chaired by the Minister of the Economy and on which sits the governor of the Bank of France. At the next HSCF meeting on Monday, “possible new technical adjustments will be studied, provided that they do not lead to an increase in the risk of over-indebtedness,” the governor of the Bank of France warned on November 17. François Villeroy de Galhau.
About ten days ago, the governor called on real estate credit players to respect the standards put in place by the HCSF, a message addressed to brokers and banks alike. “It is desirable that the supply of bank credits now gradually resumes, but without risking over-indebted households: pay attention to suggestions to forget the common sense standards of the HCSF,” said François Villeroy de Galhau in an interview with Républicain Lorrain on November 22.
He recently underlined “the continuous and singular progression of household debt”, as well as “the marked drift in loan durations and the repayment burden”, during the annual conference of the Prudential Control and Financial Control Authority. resolution (ACPR) in November. Brokers are calling for “breaking the lock” on the maximum debt rate, at 35% of income.