Salary domiciliation
A commitment, sometimes asked in exchange for a better rate, to receive one's income into an account at the lending bank. Since 2019 it can no longer be imposed as a condition of approval but remains a commercial negotiating lever. The borrower weighs the pricing benefit against banking freedom.
Key points
- Commitment to receive one's income into an account at the lending bank.
- Can no longer be imposed as a credit-granting condition since the 2019 PACTE law.
- Remains a commercial negotiating lever that may translate into a rate benefit.
- Time-limited: the maximum duration of the pricing advantage tied to domiciliation is regulated.
Frequently asked questions
What rate benefit can be expected in exchange for domiciliation?
The benefit varies by institution and period but typically ranges from a few hundredths to two tenths of a point. On a long-term loan, even a 0.10% gain represents several thousand euros in savings. The broker must compare the proposal with and without domiciliation so the client can make an informed choice.
What is the risk if the domiciliation commitment is not honoured?
The bank can legally withdraw the rate benefit granted in exchange for domiciliation. This results in a higher instalment and a rate revision. The borrower must therefore read carefully the contractual clause that specifies how the benefit works and the consequences of breaching it.
Why is domiciliation no longer a granting condition yet remains influential?
The PACTE law prohibited banks from making it a mandatory prerequisite to protect consumer banking mobility. In practice, institutions worked around this by offering a slightly higher base rate and a conditional benefit tied to domiciliation. The commercial effect is preserved while the letter of the law is respected.
In practice
A bank offers a rate of 3.75% without domiciliation and 3.60% with domiciliation for ten years. On a €220,000 loan over 20 years, the broker calculates the benefit represents approximately €3,800 in interest savings, a significant advantage to weigh against the constraint of single-bank dependency.
Official sources
- I want to obtain a mortgage (income domiciliation) · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr