France wants to expand access to real estate loans

Paris In France, too, the rapid turnaround in interest rates by the central banks in combination with high inflation on the real estate market is becoming increasingly noticeable. Buying houses and apartments is becoming increasingly difficult for average earners. Homeowners are threatened with refinancing.

In order to enable the French to dream of owning their own home despite rising interest rates, the government in Paris is considering relaxing the criteria for real estate loans. When lending to private households, their debt service ratio has so far not been allowed to exceed 35 percent of income, and the loan terms are also limited to 25 years.

Finance Minister Bruno Le Maire is now having these requirements checked, as the business newspaper “Les Echos” reports. Accordingly, the rules are currently being reviewed by the French financial regulator HCSF, the central bank Banque de France and other players in the financial sector.