Real estate loan: the offers conditioned by the domiciliation of the income more framed

The publication of the application decree relating to the offers of conditioned loans sets the maximum duration of the bank domiciliation of income at 10 years.

The publication of the application decree relating to the offers of conditioned loans sets the maximum duration of the bank domiciliation of income at 10 years.

Domiciliation of income requires a benefit for the borrower

Announced at the beginning of the month, the reform of bank domiciliation has just been finally adopted. On May 31, the Minister of the Economy announced the drafting of an ordinance on mortgages subject to a bank domiciliation. With its publication in the Official Gazette on June 1, this order should then expect its implementing decree to see its measures become effective. It is now done since June 16 with the publication of the decree dated June 14.

With this reform, the government wants to control a common practice among bankers. Indeed, the mortgage is a real appeal product for banks. By issuing a credit, banks are banking on the future and hope that this link created with their client will allow the sale of other banking products. To ensure this clientele is maintained, the bank advisers have become accustomed to arranging the loan offer. By making the domiciliation of income in their establishment compulsory, that is to say that the salaries of the borrowers be paid into a “house” account, the banks were ready to negotiate certain advantages.

An advance that strengthens the link between borrowers and bankers

An advance that strengthens the link between borrowers and bankers

In many cases, this obligation is implicit between the borrower and the lender. Now this conditional offer will be legally required for past funding requests after 1 January 2018. For its part, the domiciliation of revenue will experience a time limit: 10 years. During this period, borrowers are therefore not allowed to collect their salaries in a different bank than the one who issued the loan. The change of domiciliation can be done after the first 10 years of mortgage.

If on paper, this order will allow users to take advantage of the new banking mobility included in the Macron law. But according to the credit experts, this would go against banking mobility because by giving a real status to offers of conditioned loans, the government strengthens the link between a customer and his bank.