What is the maximum debt-to-income ratio for a mortgage?
The maximum debt-to-income ratio for a mortgage is 35% of your net income, borrower's insurance included. This rule, set by the HCSF (High Council for Financial Stability), comes with a loan term capped at 25 years. Banks have a flexibility margin covering 20% of their loan files.
How the debt-to-income ratio is calculated
The debt-to-income ratio compares your credit charges to your income: ratio = (loan monthly payments, insurance included) / (net monthly income) × 100. It includes the future property payment and all your outstanding loans (car, consumer).
The income counted is your stable net income: salaries, pensions, and part of any rental income (often 70%). Variable bonuses are only counted in part.
The HCSF rule: 35% and 25 years
Since January 2022, the recommendation of the High Council for Financial Stability (HCSF) has become binding: the effort rate must not exceed 35% (insurance included) and the loan term must not exceed 25 years.
The term can reach 27 years when the purchase concerns a new-build (VEFA, off-plan sale) or an existing property with works representing at least 10% of the operation's amount, for the duration of the deferred repayment period.
The banks' flexibility margin
Banks may depart from these rules for 20% of their quarterly loan production. This margin is primarily reserved for buyers of their main residence and for first-time buyers.
A file above 35% therefore remains possible, but only with a solid profile: comfortable residual living income, savings, and professional stability.
Worked example
The following table shows the maximum monthly payment by net monthly income under the 35% rule: with 2,000 € net, up to 700 €; with 3,000 €, up to 1,050 €; with 4,000 €, up to 1,400 €; with 5,000 €, up to 1,750 €.
| Net monthly income | Maximum instalment (35%) |
|---|---|
| 2,000 € | 700 € |
| 3,000 € | 1,050 € |
| 4,000 € | 1,400 € |
| 5,000 € | 1,750 € |
Maximum monthly instalment by net monthly income (the 35% rule)
Frequently asked questions
Does borrower's insurance count toward the 35%?
Yes. Since 2022, the debt-to-income ratio is assessed with borrower's insurance included, which mechanically reduced borrowing capacity compared with the former calculation excluding insurance.
Can you borrow above 35%?
Yes, within the 20% of derogatory files that each bank may grant, primarily to main residences and first-time buyers with a solid profile.
Is residual living income taken into account?
Yes. Beyond the debt-to-income ratio, the bank checks the residual living income (what you have left after the payment) and the increase in charges compared with your current rent.
Read next
- HCSF : décision relative aux conditions d'octroi de crédit immobilier
- Service-Public.fr : crédit immobilier
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