loan duration, insurance, new rules in force this year

Another novelty, the household debt ratio is capped at 35%, borrower insurance included. However, the banks can free themselves from this rule for 20% of the loans granted by favoring households who want to buy a main residence and first-time buyers. Those who do not respect it can be reprimanded or fined. According to the Banque de France, this is “not a restriction, but a protection” for households.

Fewer constraints to ensure

The new provisions which come into force in June concern borrower insurance for mortgage loans. Holders of a home loan will be able to change insurance at any time. It is a small revolution which will allow, according to UFC-Que Choisir, a gain of 550 million euros per year to borrowers, by renegotiating. Until now, to terminate a contract, it had to be done no later than fifteen days before the anniversary date during the first year and at least two months before the anniversary date thereafter. Constraining conditions that deterred borrowers.

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